Are you a taxpayer? Discover how Budget 2025 could work in your favour!

Explore the budget expectations for taxation policies focused on benefiting the low and middle-income groups.

Finance Minister Nirmala Sitharaman is set to unveil the Union Budget 2025 on February 1, 2025. As the Budget Day approaches, individual taxpayers in India are anticipating several key tax reforms aimed at reducing their financial burden and stimulating economic growth. One of the primary expectations is an increase in the basic exemption limit under the new tax regime from the current Rs 3 lakh to Rs 5 lakh, providing substantial relief to low and middle-income earners.

Additionally, there is a strong demand for raising the Section 80C deduction limit from Rs 1.5 lakh to Rs 2 lakh, encouraging greater personal savings and investments in eligible instruments such as Public Provident Fund (PPF), National Pension System (NPS), and life insurance premiums.

Homeownership incentives are also in focus, with taxpayers hoping for an increase in the deduction limit on home loan interest under Section 24(b) from Rs 2 lakh to Rs 3 lakh. This adjustment aims to make housing more affordable and stimulate the real estate sector.

Moreover, there is an expectation for the introduction of clear taxation guidelines for emerging assets like cryptocurrencies and Non-Fungible Tokens (NFTs), ensuring compliance and reducing legal ambiguities.

Enhancements in deductions for health insurance premiums under Section 80D are also anticipated, with proposals to increase the limit from Rs 25,000 to Rs 50,000 for individuals, and from Rs 50,000 to Rs 75,000 for senior citizens, addressing the rising healthcare costs.

These proposed reforms reflect a collective aspiration for a more equitable and growth-oriented tax framework in the upcoming Union Budget 2025.

Stay tuned for in-depth insights and quick updates on Budget Day.