Budget 2025: Finance Minister Nirmala Sitharaman will present the first full budget of the third term of the Modi government on 1 February 2025. It is believed that this time the main focus of the government will be on the salaried middle class. The government plans to leave more money in the hands of people. So that, both spending and saving can be promoted. For this, major changes can be made in the income tax rules. The middle class is expecting three major changes in the budget.
1. Increase in tax exemption under 80C
Under the old tax regime, tax exemption up to Rs 1.5 lakh is available under Section 80C. This discount is available on investments like LIC, PF, Equity Linked Savings Scheme, Sukanya Samriddhi Yojana, National Savings Certificate and Term Deposit. However, given rising inflation and increasing investment options, this limit is now beginning to seem less. In such a situation, experts and middle class believe that the government can increase it from Rs 1.5 lakh to Rs 2 lakh.
2. The scope of interest rebate on home loan may increase
Every person dreams of buying his own house. At present, in case of home loan, tax exemption is available on interest up to Rs 2 lakh. But considering the rising interest rates and pressure on the real estate sector, it is expected that this limit may be increased from Rs 2 lakh to Rs 3 lakh. Along with this, there is also a demand to implement exemption on home loan in the new tax regime.
3. Relief expected in 80D on health insurance premium
Keeping in mind the rising health insurance premiums, the exemption limit under Section 80D is likely to be increased in Budget 2025. Currently, a rebate of Rs 25,000 is available on health insurance, whereas for senior citizens this limit is Rs 50,000. In the new budget, the salary class is demanding to increase it to Rs 50,000 and for senior citizens to Rs 1 lakh.
Hope for relief for middle class
Many other relaxations can be made in the upcoming budget keeping the salaried class in mind. This budget will not only provide relief to taxpayers, but will also help economic development. Now all eyes are on the budget to be presented on 1 February 2025.
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