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Income Tax Slab Rates Budget 2025 Live Updates: In Finance Minister Nirmala Sitharaman’s second full-fledged budget under the Modi 3.0 regime on February 1, taxpayers eagerly anticipate changes that could reshape personal taxation. Amid the economic slowdown and geopolitical uncertainties, taxpayers and tax experts have high expectations for bold tax reforms aimed at stimulating growth, creating employment, and increasing disposable income.
One of the key demands from taxpayers is the simplification of the direct tax framework. The government is expected to roll out the Direct Tax Code 2025, which experts say will eliminate outdated provisions, simplify tax rates, and revise TDS provisions to make tax compliance easier. Taxpayers are also hoping for a hike in the basic exemption limit to Rs 5 lakh under both Old Tax Regime and New Tax Regime. The hike in the basic exemption limit would provide much-needed relief, especially for middle-income groups, boosting disposable income.
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Income Tax Slabs 2025: Expected Revisions and Tax Relief
There are also strong expectations that the government will revise income tax slabs in both the old and new tax regimes. Such a revision would ease financial burdens and make the tax system more equitable. Also, taxpayers hope that the standard deduction will be increased, which would benefit a significant number of taxpayers by reducing their taxable income.
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Will Budget 2025 Offer Income Tax Relief for Salaried Individuals?
With healthcare costs on the rise, taxpayers are also looking for better tax relief for medical expenses. Many hope that the budget will introduce measures to support individuals facing high medical bills. In addition, taxpayers are seeking more incentives to encourage savings and investments, particularly in social security contributions. Taxpayers are also hoping for a streamlined tax framework that reduces legal disputes and speeds up dispute resolution.
Income Tax Budget 2025: Possible Changes in 80C Deductions
FM Sitharaman is expected to revise the 80C Deduction limit as the last time the changes were seen in 2014 when the Modi government presented its first Budget.
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