New Delhi: The government is likely to announce some exemptions in personal income tax in the Union Budget 2025, which will be presented by Finance Minister Nirmala Sitharaman on February 1, 2025, reports said. The government aims to promote domestic spending and accelerate economic growth by giving income tax exemption.
According to sources, the Finance Ministry team is considering options for giving relaxation in many ways. The government expects the exemption in income tax will encourage people to spend and consume more, which are the mainstay of the country’s economy. Currently, the economic growth rate is expected to be limited to 6.4 per cent, which is less than the average after the Corona epidemic. Therefore, many are saying that there is a possibility that the government may take this step.
The government could announce an increase in standard deduction: Currently, the benefit of deduction of Rs 75,000 is available, which can be increased further.
There could be changes in the basic tax exemption limit. Currently there is no tax on income up to Rs 3 lakh. There is discussion on increasing it and giving more discounts so that people can save more.
There is a possibility that tax slabs could be changed. The change in tax rates is possible for those with income of Rs 12-15 lakh. Currently this income group is taxed at 20 per cent, which could be reduced. Experts from the industry are demanding maximum relief for this category.
Existing Income Tax slabs
5 per cent tax on income of Rs 3-7 lakh
10 per cent tax on income of Rs 7-10 lakh
15 per cent tax on income of Rs 10-12 lakh
20 per cent tax on income of Rs 12-15 lakh
30 per cent tax on income above Rs 15 lakh
Union Budget 2025, to be presented on February 1, 2025 is anticipated to include significant personal income tax exemptions. The government aims to boost domestic spending and economic growth by potentially increasing the standard deduction, raising the basic exemption limit, and adjusting tax slabs, particularly for those earning between Rs 12-15 lakh annually. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
