class="post-template-default single single-post postid-13593 single-format-standard wp-embed-responsive post-image-above-header post-image-aligned-center sticky-menu-fade right-sidebar nav-below-header separate-containers header-aligned-left dropdown-hover" itemtype="https://schema.org/Blog" itemscope>

Will 30% tax slab be removed in budget 2025, what changes can happen in the new tax regime? – will the 30 percent tax slab be removed for taxpayers in India in budget 2025

Expectations from Budget: Finance Minister Nirmala Sitharaman will present the budget on 1 February. In the budget, there is a possibility of considerable change in the existing tax system. The government wants to promote the new tax regime more and more, so all the speculation is being made about possible changes in the income structure. For example, the highest tax is the most discussed about the change with the highest tax slab (30%). This tax slab is applicable to those with annual income of more than Rs 15 lakh.

We are telling you about the important possibilities of changes related to income tax here:

30% tax slab

30% tax slab is applicable on income of more than Rs 15 lakh and no change has been applied from 2020. In the argument that is being given in favor of removing it, it is being said that this will increase the spending income of taxpayers. Increase in spending income can promote congestion. Consumption plays an important role in increasing economic growth. Consumption has about 60 % stake in the country’s GDP. Experts estimate that the government may change the new tax regime. Also, 30% can increase the income limit to Rs 20 lakh for tax slab.

New tax regime

The government is working towards making tax structure easier. The new tax regime was introduced in 2020. It has low rates and discounts. This can be made easier by reducing tax slab of 30 %. At present, a person with an annual income of Rs 7.75 lakh is not roughly taxed under this regime. For tax free income, it is proposed to increase this limit to Rs 10 lakh. Industry experts have suggested to keep 20% tax rate on income of Rs 20 lakh and 25% on more income.

30% slab and government revenue

The government has an important role in increasing the tax revenue of 30%. Removing or reducing this bracket can reduce revenue and create challenges for the government. Especially there may be difficulty in raising funds for infra, healthcare and social welfare schemes.

What can be done?

Instead of reducing 30 % tax slab, the government should use other options. If the government increases the income limit for 30 % slab from Rs 15 lakh to Rs 20 lakh, then it will provide a lot of relief to the middle and upper-media taxpayers.

New tax slab

A new tax slab can be included between 20% to 30% in the upcoming budget. This tax slab will be for those who earn more than 15 lakh rupees. Akhilesh Ranjan, a former CBDT member and current advisor in PWC, said that the government is considering bringing a new tax bracket of 25% for people with 15-20 lakh annual income.

Leave a Comment