Introduction

As the world undergoes significant changes, from global economic slowdowns to geopolitical developments, the common man eagerly anticipates the Union Budget 2025. Here are the top six income tax expectations that could shape the financial landscape.

1. Higher Tax Exemption Limit

With the government's push towards the new tax regime, it's hoped that the basic tax exemption limit will increase from Rs 3 lakh to Rs 5 lakh, providing more disposable income for individuals.

2. Increased Rebate

Expectations are high for the rebate limit under the new tax regime to rise from Rs 7 lakh to Rs 10 lakh, offering relief to middle-income taxpayers.

3. Increased Standard Deduction

To combat inflation and address higher personal expenses, there's a call to increase the standard deduction from Rs 75,000 to Rs 1,00,000 for salaried taxpayers.

4. Impetus for Housing Sector

In line with the 'Housing for All' objective, reconsidering deductions for interest on self-occupied housing loans under the new tax regime is suggested.

5. Tax Benefit for Electric Vehicles

To promote clean energy, reintroducing and extending the deduction for interest on loans taken to purchase electric vehicles is proposed.

6. Sale of Property by Non-Residents

Simplifying the tax deduction process for non-resident property sellers to match that of residents could significantly ease transactions.