Budget 2025: There may be many announcements for taxpayers in the budget to be presented on February 1. It is believed that the government can expand tax free income.
Budget 2025: Only a few days are left for the presentation of the general budget. Finance Minister Nirmala Sitharaman will present the general budget of the country on February 1. Taxpayers also have high expectations from this budget. Taxpayers have been demanding to increase tax free income for a long time. The way inflation is increasing, the scope of tax free income has not been increased in the same way. At present, your income up to Rs 7.75 lakh is completely tax free. People demand that the tax free income be increased to Rs 10 lakh in the budget.
Those earning up to Rs 20 lakh expect tax relief
A report by Business Standard quoted sources as saying that the government can give tax relief to those earning up to Rs 20 lakh. For this, 2 options are being considered. The first option is to make income up to Rs 10 lakh tax free. The second option is to bring a new tax slab of 25% for those with income of Rs 15 to 20 lakh. This exemption will be available only to those who choose the new tax regime. At present, there is no tax on income up to Rs 7.75 lakh with a standard deduction of Rs 75 thousand. Apart from this, 30% tax is levied on income above Rs 15 lakh.
There will be a loss of Rs 1 lakh crore in revenue
If the central government gives this relief to the taxpayers, then the government will lose revenue of Rs 50 thousand crore to Rs 1 lakh crore. The Modi government had also given relief in income tax to the taxpayers in the budget of the year 2023. At that time, the tax exemption in section 87A for those choosing the new tax regime was increased to Rs 7 lakh.
Consumption will increase
According to experts, if the government wants to increase GDP growth by increasing consumption, then it should give relief in income tax. The government should bring a tax slab of 25% on income of Rs 15 to 20 lakh. This will leave more money with the people, which will increase consumption.
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