As Finance Minister Nirmala Sitharaman prepares for the upcoming Union Budget 2025, several important reforms are being expected for taxpayers. Especially for salary-based and senior citizens, there may be many big announcements regarding income tax in the 2025 general budget, which also includes changes in the slabs of income tax returns. Let us know what is going to be available in this budget.
To make the new tax regime more attractive, the Finance Minister may amend the income tax slab rates. Experts suggest that a tax rate of 30% be imposed on income above Rs 20 lakh, so that it is in line with inflation and the current economic situation. This step could be an attempt to encourage the new tax regime.
The new tax regime applies equally to all taxpayers. Experts have recommended that separate tax slabs be created for senior citizens aged 60 years and above. This may include higher exemption limits or lower tax rates, thereby improving their financial position.
The standard deduction in the old regime of income tax is Rs 50,000 and in the new regime it is Rs 75,000. Experts have advised to increase it to Rs 1 lakh. This change will provide relief to salary based employees.
The government may increase import duty on gold to control trade deficit. Recently the import duty was reduced from 15% to 6%. However, this time there is a possibility of increase in duty, which will help in reducing the trade deficit.
It has been suggested to increase the deduction limit under Section 80C from Rs 1.5 lakh to Rs 3.5 lakh. Apart from this, there has been a demand to separate the housing loan interest deduction from this section and provide a higher limit.
