The government can give a big relief to the taxpayers in the budget to be presented on February 1. Many important decisions can be taken from increasing the limit of tax free income to changes in tax slabs.
The country’s Finance Minister Nirmala Sitharaman will present the Union Budget on February 1. The budget session will begin on January 31 itself. This will be the second full budget of the new cabinet of Prime Minister Narendra Modi, who has come to power for the third time. Earlier, after the formation of the government, in July 2024, the Finance Minister presented the general budget to the country, in which relief was given to many sectors including tax. In the budget to be presented this time, it is also expected that the government can give gifts to taxpayers to strengthen the economic condition of the country and increase consumption. Let us understand what changes can be made for taxpayers in the upcoming budget.
Taxpayers have expectations
There are currently two types of regimes for those who pay income tax. The first is the old tax regime which has been in place since the beginning. The second tax regime is the new tax regime, which was started by the government in the year 2020. The government can take many important decisions to take this tax regime forward. It is believed that changes can be made in the tax slab in the new tax regime to increase consumption. Let us understand what the government can do for taxpayers in the budget.
Increase in tax free income
The central government can increase the limit of tax free income to provide relief to the middle class. Currently, there is no tax on income of Rs 7 lakh 75 thousand with standard deduction. The government can increase this limit to Rs 10 lakh. At the same time, the government can also increase the limit of standard deduction from Rs 75 thousand to Rs 1 lakh. Because in the last budget, the limit of standard deduction of Rs 50 thousand was increased to Rs 75 thousand.
Changes in tax slabs
In the Union Budget 2025, Finance Minister Nirmala Sitharaman can change the tax slabs of the New Tax Regime. The main goal of the government is to increase consumption. For this, the government is making such a plan that the middle class has as much money as possible. When they have money in their hands, they will be able to spend more and if the expenditure increases, then the country’s economy will also grow. For this, there may be a change in the tax slab in the upcoming budget. It is believed that the tax income limit can be increased for those paying 20 percent tax. Which is currently between Rs 12 to 15 lakh. It can be increased to Rs 20 lakh.
