24/01/2025
report....
Budget 2025: Income up to Rs 10 lakh to be tax free, new 25% tax slab may be announced, says report
Union Finance Minister Nirmala Sitharaman is set to announce Union Budget 2025-2026 on February 1.....
As a relief to taxpayers, the upcoming Union Budget 2025-2026 may see significant changes to the new tax regime. These include making annual income of up to Rs 10 lakh tax free and introducing a new 25% tax slab for annual income between Rs 15 lakh and Rs 20 lakh, Business Standard reported citing government sources.
Union Finance Minister Nirmala Sitharaman is set to announce Union Budget 2025-2026 on February 1. Salaried taxpayers eagerly await rebates and tax reductions under both the tax regimes from the annual budget.
Currently, under the new tax regime, salaried taxpayers earning up to Rs 7.75 lakh per annum effectively have no tax liability, with Rs 75,000 standard deduction in place. Income over Rs 15 lakh per annum falls under the highest tax slab of 30%. The Business Standard report suggested that government is evaluating the changes.
"We are evaluating both options. If our budget allows, we may implement both measures – making income up to Rs 10 lakh tax-free and introducing a 25 percent slab for income between Rs 15 lakh and Rs 20 lakh," a government source told the publication. He further said that the government is prepared to absorb the revenue loss of Rs 50,000 crore to Rs 1 lakh crore as an impact of such income tax relief.
.......Moneycontrol couldn't verify the report independently.......
Notably, the Global Trade Research Initiative (GTRI) has recommended significant tax reforms ahead of the Union Budget 2025-26. The think tank suggested raising the income tax exemption threshold to Rs 5.7 lakh, adjusted for inflation. GTRI also proposed increasing fixed deductions and exemptions, such as raising the Rs 10,000 deduction for savings interest to Rs 19,450 by 2025 and adjusting the Rs 1.5 lakh deduction for insurance premiums and PF contributions to Rs 2.6 lakh. The think tank emphasised on the need for inflation-indexed tax slabs and exemptions to preserve the real value of benefits for taxpayers.
