Budget 2025 Finance Minister Nirmala Sitharaman will present the Union Budget on February 1. The middle class has a lot of expectations from this budget. Especially on the income tax front. Grant Thornton India has conducted a survey in which about 57 percent of the people involved believe that the individual income tax rates should be reduced in the budget.
Most of the taxpayers of the country want a cut in income tax in the upcoming budget. Finance Minister Nirmala Sitharaman will present the Union Budget for the financial year 2025-26 on February 1. Grant Thornton India has conducted a survey, in which about 57 percent of the people involved believe that the individual income tax rates should be reduced in the budget.
Suggestion to reduce income tax rate
Many economists believe that GDP growth has been slowing down for the last few quarters. The reason for this is that the middle class does not have money in hand. A large part of their earnings goes to pay taxes and deal with inflation. This is the reason why economists are also suggesting to reduce the income tax rate, so that the middle class has more money in their hands and consumption is boosted.
Will the government reduce the income tax rate?
The government can reduce the income tax rate to boost the economy. According to media reports, Finance Minister Nirmala Sitharaman is also focusing on simplifying the income tax. In view of inflation, the government can also give some relief to taxpayers in the income tax slab of Rs 10 to 15 lakh.
Change in slab will provide relief
Corporate and legal advisor and founder of AU Corporate Advisory and Legal Services (AUCL) Akshat Khaitan told news agency ANI that the two major expectations before the upcoming Union Budget 2025 are abolition of Securities Transaction Tax (STT) and revision of income tax exemption slab to Rs 25 lakh.
Tax deduction limit in NPS should be increased
Akhil Chandna, partner, Grant Thornton India, says that in the upcoming budget, the tax deduction limit on investment in NPS should be increased and the withdrawal rules of NPS should be made more flexible. This will boost retirement savings in the hands of taxpayers. Currently, investment up to Rs 50,000 in NPS is tax free. Chandna said that the government wants to promote green environment through electric vehicles (EV). In such a situation, clarity is expected from the government on the tax rules related to its use. Chandna said that the benefit of tax reduction should be available for the purchase of EV.
