India Budget 2025: The government plans to make significant statements in the Union Budget 2025. On February 1, Finance Minister Nirmala Sitharaman is scheduled to announce income tax cuts. According to experts, taxpayers under the new tax structure may be eligible for additional compensation. The government will make income up to Rs 10 lakh per year tax-free. A new 25% tax band will be created for persons with annual incomes ranging from Rs 15 lakh to Rs 20 lakh.
Full Information of India Budget 2025
Income up to Rs 10 lakh is tax-free
Last year, the government doubled the standard deduction to Rs 75,000 in the new tax regime announced in the Union Budget. As a result, salaried taxpayers earning up to Rs 7.75 lakh per year are no longer needed to pay income tax. However, salaried taxpayers having an annual income of more than Rs 15 lakh are required to pay 30% tax. “We are considering both alternatives.
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The government suffers an annual loss of 50,000 to 1 lakh crore
He stated that “Income tax up to Rs 10 lakh can be made tax-free.” In addition, a new tax band of 25% can be implemented on incomes up to Rs 15-20 lakh.” He stated that the government is prepared to lose between Rs 50,000 and Rs 1,00,000 in annual revenue as a result of this. Moneycontrol has been unable to independently verify this information.
Advice to decrease taxes on the middle class
Economists have encouraged the government to reduce taxes for the middle class in order to boost consumption. People will have more money in their hands as a result of the reduced tax burden, allowing them to spend it more. Inflation, particularly food inflation, has made people’s lives more difficult. As a result, people are saving more money. This is affecting economic activity. GDP growth in the second quarter of this fiscal year has slowed to 5.4%. Experts warn that if the government does not take fast action, the economy may suffer a slump.
Reducing taxes can boost consumption
Consumption must be raised to keep the economy from slowing. Tax experts believe that if the government lowers the tax burden on the middle class, consumption will increase. Currently, the prior income tax regime charged a 30% tax on income above Rs 10 lakh per annum. The new income tax regime levies a 30% tax on income above Rs 15 lakh per year.
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