Budget 2025-26: EY Chief Policy Advisor DK Srivastava says that in the upcoming budget, there is a need to focus on domestic factors like reducing personal income tax and allocating more capital expenditure to boost growth amid global economic uncertainties.
Union Budget 2025: Everyone is expecting income tax relief in Budget 2025. What is the government’s decision in this direction, it will be revealed only when the budget is presented on January 1. However, the round of speculations continues, under which there is also an estimate that the government can announce a framework to gradually abolish the old income tax system in the next few years while making the new tax system attractive.
A report by CNBC-TV18 says that the government is considering a plan to give tax relief to taxpayers, which will boost consumption and economic activity. Also, consideration is being given to making the new income tax system more beneficial or attractive.
Two options are being considered
The report quoted sources as saying that the government is considering two options to provide tax relief under the new tax system. The first option is to further increase the limit of standard deduction under the new tax system for salaried taxpayers. Currently, the limit of standard deduction under the new tax system is Rs 75,000.
The second option is to adjust the tax slabs in the new tax system. The government can expand the 20% tax slab under the new system and cover income of ₹ 12-18 lakh or up to ₹ 20 lakh annually. Apart from this, a tax bracket of 30% can be imposed on income above ₹ 18 lakh or ₹ 20 lakh. The current tax slabs under the new income tax regime are as follows…
- ₹0 to ₹3,00,000: 0%
- ₹3,00,001 to ₹7,00,000: 5%
- ₹7,00,001 to ₹10,00,000: 10%
- ₹10,00,001 to ₹12,00,000: 15%
- ₹12,00,001 to ₹15,00,000: 20%
- ₹15,00,001 and above: 30%
Ahead of the budget, many tax experts and industry bodies are expecting the government to revise the tax slabs and rates under the new regime to put more money in the hands of taxpayers. Recently, EY India said that it expects the government to increase the basic exemption limit from ₹ 3 lakh to ₹ 5 lakh in the new income tax system and also reduce tax rates. EY Chief Policy Advisor DK Srivastava says that the upcoming budget needs to focus on domestic factors like reducing personal income tax and allocating more capital expenditure to boost growth amid global economic uncertainties.
Most Read Articles:
- iPhone 16 Pro Price Cut: Golden opportunity to buy iPhone 16 Pro for ₹72,610, Flipkart is offering bumper discount
- DoT New Order: Good news! DoT orders telecom companies to implement caller ID feature, Fake calls will not bother you anymore
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
