Budget 2025: Now only a few days are left for the presentation of the general budget. Finance Minister Nirmala Sitharaman will present the country’s general budget 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 scope of tax free income has not been increased as inflation is increasing. At present your income up to Rs 7.75 lakh is completely tax free. People are demanding that tax free income should be increased to Rs 10 lakh in the budget.
Expecting tax relief for those earning up to Rs 20 lakh
In a report of Business Standard, quoting sources, it has been said that the government can give tax relief to those earning up to Rs 20 lakh. Two options are being considered for this. The first is that income up to Rs 10 lakh should be made tax free. The second option is to bring a new tax slab of 25% for those earning 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 to be paid on income up to Rs 7.75 lakh with a standard deduction of Rs 75,000. 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 suffer a loss of Rs 50 thousand crore to Rs 1 lakh crore in revenue. Modi government had also given income tax relief to taxpayers in the budget of 2023. At that time, the tax exemption under Section 87A for those choosing the new tax regime was increased to Rs 7 lakh. Was done till.
consumption will increase
According to experts, if the government wants to increase GDP growth by increasing consumption, then it should provide relief in income tax. The government should bring a tax slab of 25% on income between Rs 15 to 20 lakh. This will save people more money, which will increase consumption.
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