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Budget 2025: What Indian Middle Class Wants From FM Nirmala Sitharaman; Check Taxpayers' Wishlist
Budget 2025 Time: Finance Minister Nirmala Sitharaman will present the Union Budget 2025 today at 11 AM. This marks her eighth budget and the second full-fledged budget of the Modi-led NDA government's third term. As anticipation peaks, investors, businesses, and policymakers await crucial reforms that could redefine India's economic trajectory. With no major tax changes in the past decade, taxpayers are hoping for long-awaited relief this time.
According to the Economic Survey tabled on Friday, India's economy is projected to grow between 6.3% and 6.8% in 2025-26, setting the stage for fiscal and policy decisions that could shape the country's financial future. What the Indian middle class expects from this budget 2025, let's have a quick look...
Higher Tax Reliefs For Senior Citizens
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Senior citizens may receive significant tax deductions on fixed deposit (FD) interest, savings accounts, medical expenses, and more in the upcoming Budget.
Increased Basic Exemption Limit
Taxpayers are hoping for a rise in the basic exemption limit under the New Tax Regime (NTR) from Rs 3 lakh to Rs 5 lakh for greater tax relief.
Home Loan Deductions Under NTR
Currently, home loan interest deductions (Section 24B) apply only to the Old Tax Regime. Taxpayers want these benefits extended to NTR to encourage homeownership.
Revised Tax Slabs for Middle-Income Earners
If the exemption limit rises to Rs 5 lakh, taxpayers seek a 5% tax rate for incomes between Rs 5 lakh and Rs 10 lakh, making earnings up to Rs 10 lakh tax-free after rebates.
Higher Standard Deduction For Salaried Individuals
The last increase in the Standard Deduction was to Rs 75,000 in Budget 2024. Taxpayers now demand a hike to Rs 1 lakh for additional savings.
New 25% Tax Slab for Higher Earners
Currently, a 30% tax applies to incomes above Rs 15 lakh. A new 25% slab for incomes between Rs 15 lakh and Rs 20 lakh is being requested.
NPS And EPF Tax Benefits Under NTR
Employees want NPS contributions under NTR to qualify for deductions like the Rs 2 lakh benefit under the Old Tax Regime. Similarly, EPF contributions should get tax relief under the upcoming EPFO 3.0 reforms. (Image Credit: Freepik, File Photo)
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