Budget 2025 Income Tax Expectations

Individual and salaried taxpayers are eagerly anticipating Budget 2025, with a strong desire for Finance Minister Nirmala Sitharaman to lower personal tax rates. A recent Grant Thornton Bharat pre-budget survey highlights this sentiment, revealing that 57% of participants are advocating for reduced personal income tax rates, while 25% are in favor of higher exemption thresholds.

New Tax Regime Gains Popularity

Government data indicates a significant shift towards the new income tax regime, with 72% of taxpayers opting for it. This leaves only 28% who continue to prefer the old tax regime. To make the new regime more appealing, 46% of survey participants suggest lowering tax rates, and 26% propose raising exemption limits.

Requests for Enhanced Benefits

Despite the government's hint at discontinuing the old tax regime, 63% of taxpayers are still requesting increased benefits under it. Additionally, there's a call for specific benefits to promote environmentally friendly choices and retirement savings, such as enhanced provisions for the National Pension Scheme (NPS) and greater tax advantages for electric vehicles.

Streamlining Tax Filing and Compliance

Taxpayers are also advocating for a more streamlined tax filing and compliance framework. A significant 38% of participants support enabling tax payments through foreign banking institutions to simplify compliance procedures for NRIs. There's also a push for improving tax refund processes to overseas banks and implementing e-verification systems that send OTPs to international mobile numbers.

Looking Ahead

As Finance Minister Nirmala Sitharaman prepares to present the Union Budget on February 1, 2025, individual taxpayers hold high hopes for more tax-saving options, reduced tax rates, and increased standard deduction limits under the new tax regime. The anticipation for Budget 2025 is palpable, with taxpayers looking forward to measures that will ease their tax burdens and promote a greener, more sustainable future.