Union Finance Minister Nirmala Sitharaman is all set to the union budget 2025 at 11 am. This time, she might announs manor changes to the new income tax regime in the budget 2025 to make it more attractive for individual taxpayers. First introduced in 2020, the new income tax regime has gone through several changes over the year to make it more attractive for taxpayers. And while the changes have led to increase adoption, experts sugges that there is scope to make it more attractive.
What Key Changes Taxpayers Can Expect?
Hike in Basic Examption Limit
One of the key changes could be an increase in the basic exemption limit from Rs 3,00,000 to Rs 3,50,000. If the centers approves it, this would provide relieve to individuals by boosting disposable income, which, in turn, count support consumption.
Big Boost in NPS
Currently, The Employer’s Contribution to the National Pension System (NPS) is tax-exmpt under the new regime, however, an individual’s constribution dose not Qualify for any examption. This could change in budget 2025 with the government extending the benefits to personal nps contributions as well.
Big rebate under section 87a
The rebate under section 87a which is now applicable to income up to Rs 7 lakh, may be extended to Rs 8 lakh, which will give guive taxpayers more Room Before Tax Rates Rates Apply.
Apart from this, the government could introduce a new tax slab, Levying 25% on Incomes Between Rs 15 Lakh and Rs 18 Lakh, While Keeping The 30% Rate for Incomes Above Rs 18 Lakh.
This time, Finance Minister Nirmala Sitharaman will present her eighth cultural budget on saturday and will deliver it shortly from a digital tablet enclosed in a trial ‘bahi-khata’ bahi-khata ‘bahi-khata’ bahi-khata ‘bahi-khata
Sitharaman, India’s first full-time women finance minister, broke away from the colonial tradition of carrying a budget briefcase in July 2019, Opting for a traded for a traded ET Papers.
She continued this custom the following year, and in the Pandemic-Abfected 2021, She replaced the traditional papers with a digital tablet to carry her speech and other budget documents. This tradition continues on saturday.
She was appointed as the finance minister when modi sweept to power again in the 2019 election and presented her maiden budget on July 5, 2019. Mblem to carry the budget documents.
Earlier, Finance Ministers in different governments, include her predacesors in the modi government – Arun Jaitley and Piyush Goyal- Used the Standard Budget Briefcase.
