The Countdown to the Union Budget
The countdown to the Union Budget has begun! On 1 February, Saturday, Finance Minister Nirmala Sitharaman will present the general budget to the country in Parliament. There are high expectations from the government, especially regarding income tax exemptions for taxpayers.
Expected Changes in Income Tax
Many are hoping for a reduction in income tax rates and for the government to make the tax slabs more flexible. The demand for an increase in the standard deduction is also strong.
Reports suggest that the Finance Minister may announce significant changes in the new tax regime. One possible change is increasing the basic exemption limit from Rs 3 lakh to Rs 10 lakh. Additionally, there could be a new tax slab of 25 percent for incomes between Rs 15 lakh and Rs 20 lakh.
Currently, individuals earning more than Rs 15 lakh pay a tax rate of 30 percent. If the new slab is introduced in the 2025 budget, the 30 percent tax rate would then apply to incomes exceeding Rs 20 lakh.
As the budget date approaches, many taxpayers are eager to see what announcements will be made.
Union Budget 2025 Overview
| Key Information | Details |
|---|---|
| Date of Presentation | 1 February 2025 (Saturday) |
| Finance Minister | Nirmala Sitharaman |
| Expected Tax Changes | Income tax exemption and flexible tax slabs |
| Proposed Basic Exemption Limit | Increase from Rs 3 lakh to Rs 10 lakh |
| New Tax Slab | 25% for income between Rs 15 lakh and Rs 20 lakh |
| Current Tax Rate for income > Rs 15 lakh | 30% |
| Proposed Tax Rate for income > Rs 20 lakh | 30% |
