A Seamless Taxpayer Experience

With the 2025 Union Budget approaching, the focus on tax reform is growing. Simplifying the tax system not only enhances the taxpayer's experience but also stimulates economic growth, improves compliance, and aids in better financial planning. Here are five crucial areas where changes could significantly benefit individual taxpayers.

Turning Taxes into Tangible Benefits

Seeing tangible benefits from tax payments can encourage a positive attitude towards taxation. Personalized benefits for consistent taxpayers, such as priority services at government offices, discounts on various fees, and access to premium public facilities, could significantly boost morale and compliance.

Revamping Housing Loan Deductions

Homeownership is a major financial achievement. Adjusting the current Rs 2 lakh cap on housing loan interest deductions to better reflect today's property values and interest rates could offer substantial relief to homeowners and support economic stability.

Making ESOP Taxability Uniform for All Organizations

Employee Stock Ownership Plans (ESOPs) are a popular way for companies to offer employees a stake in the business. Extending the benefit of deferring tax payment on ESOPs to employees of all organizations, especially unlisted companies, could align tax payments with actual gains and simplify the tax implications of ESOPs.

Strengthening Faceless Assessment Scheme

The Faceless Assessment Scheme has revolutionized tax administration by enhancing transparency and accessibility. Addressing operational challenges and introducing measures like a FIFO system for pending cases and strengthening grievance redressal mechanisms can further streamline the process and improve compliance.