Budget 2025: New tax exemptions may be announced in Budget 2025. There is a proposal to increase the standard deduction limit and change the tax scope. This step can be taken to increase the spending capacity of the public and give impetus to the economy.
Budget 2025: The government led by Prime Minister Narendra Modi is planning to give a big gift to the citizens of the country by giving new tax exemptions. This step can be taken with the aim of giving new momentum to the country’s economy and increasing the spending capacity of the public. Finance Minister Nirmala Sitharaman can announce this scheme in the upcoming Budget 2025.
According to a CNBC-TV18 report, the government is considering making changes in the income tax exemption to make the new tax system more attractive and profitable. According to the report, the standard deduction limit is likely to be increased from ₹ 75,000 to ₹ 1,00,000. Apart from this, the scope of 20 percent tax rate can also be increased from income of Rs 12-15 lakh to Rs 12-20 lakh. This change will bring relief especially to those whose income is between Rs 15-20 lakh.
PMO and Finance Ministry will take the final decision
This initiative will depend on the final decision of the Prime Minister’s Office and the Finance Ministry. The report also suggests that the government may end the old tax system. The new tax system introduced in 2020 provides lower rates, but it does not have the provision of deductions and exemptions like the old system.
On February 1, Finance Minister Nirmala Sitharaman will present the second full budget of the third term of the Modi government. Economists believe that the government will stick to the target of controlling the fiscal deficit. A deficit target of 4.9 percent has been set for this financial year, which is targeted to be reduced to 4.5 percent or less by 2026.
Aim to strengthen the economy
Through this budget, the government’s efforts will not only be limited to giving relief to taxpayers, but its aim will also be to strengthen the economy. Through tax reform, more money will come into the hands of the public, which will increase their purchasing power and promote consumption.
If the new tax system is made more attractive than the old system and the exemption limit is increased, then it will prove to be a big change for the common taxpayers. This will not only provide relief to the middle class, but this step will also be favorable for businesses and industrial sectors.
These possibilities related to the upcoming budget have increased curiosity among the general public and experts. It will be interesting to see whether the government brings a big change in the economic direction of the country by implementing these steps.
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