Union Budget 2025: A Beacon of Hope for the Salaried and Middle-Income Groups

The much-anticipated Union Budget 2025-26 is set to be presented by Finance Minister Nirmala Sitharaman, with high expectations from the salaried class and middle-income groups for significant tax reliefs and job creation initiatives. The budget aims to strike a delicate balance between fostering economic growth and maintaining fiscal discipline, addressing the pressing needs of taxpayers, businesses, and key industries alike.

Tax Slabs and Relief Measures

Speculations are rife about potential revisions in the new tax regime, with expectations for an increase in exemption limits and standard deductions. There's talk of raising the basic exemption limit significantly and introducing a new tax slab to alleviate the tax burden on individuals earning between Rs 15 lakh and Rs 20 lakh annually.

Tax Reforms and Simplification

Budget 2025 is also expected to focus on tax reform and simplification, with the introduction of a modernized Direct Tax Code (DTC) to replace the outdated Income Tax Act. This move aims to streamline tax processes and reduce compliance burdens, mirroring the transformative impact of GST on indirect taxation.

Sectoral Demands and Policy Expectations

Key sectors like real estate and healthcare are advocating for policy changes to stimulate growth and accessibility. The real estate sector seeks tax rationalization and increased home loan interest deductions, while the healthcare sector pushes for higher spending and incentives for digital health solutions.

Economic Growth and Industry Outlook

With India's economy on a strong footing, there's optimism for GDP growth in the range of 6.5%-7% for FY25. Strengthening the collaboration between educational institutions and industries is seen as crucial for preparing a job-ready workforce, especially in IT, healthcare, and manufacturing sectors.