Tax exemption limit may increase from ₹3 lakh to ₹5 lakh for greater relief.
As the Union Budget 2025 approaches February 1, salaried employees and taxpayers across India eagerly await announcements that could ease their financial pressures. With rising expectations for meaningful tax relief amid a challenging economic climate, Finance Minister Nirmala Sitharaman, delivering her eighth consecutive budget and the first under the Modi 3.0 government, faces heightened scrutiny. Key demands include raising the basic exemption limits and increasing deductions for home loan interest. Here’s an overview of the major expectations.
Raising the Basic Income Tax Exemption Limit
Increase in Standard Deduction
Tax Relief for Middle-Class and Salaried Individuals
Incentives for Green and Sustainable Investments
Corporate Tax Reforms
Healthcare and Education Funding
Support for Rural and Agricultural Sectors
Focus on Digitalization and Technology
So, these are some of the Expectations and Demands
Challenges Ahead for Finance Minister Nirmala Sitharaman
While there are high expectations for significant tax relief, the government must also balance its fiscal discipline. With mounting concerns over the fiscal deficit, Sitharaman will have to walk a fine line between offering tax cuts and maintaining sufficient revenue generation to fund essential government programs and services.