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Budget 2025: Finance Minister can give a gift to taxpayers, this announcement can be made regarding income tax –

by Aaryan Srivastav
January 8, 2025
Budget 2025: Finance Minister can give a gift to taxpayers, this announcement can be made regarding income tax - India TV Hindi

Photo: PTI Finance Minister Nirmala Sitharaman

Preparations for the general budget are going on in full swing. Amidst the slowing Indian economy, all eyes are on this budget. Experts say that to increase demand in the market, Finance Minister Nirmala Sitharaman can make several announcements to put money in the hands of the common man. An increase in the income tax exemption limit is also expected to be announced in the budget. For a long time, taxpayers have been demanding an increase in the income tax exemption limit. Now tax consultant EY says that the upcoming budget is expected to focus on encouragement of private capital expenditure, tax simplification and income tax cuts to boost demand. Finance Minister Nirmala Sitharaman will present the Union Budget for the financial year 2025-26 on February 1.

More than Rs 31 lakh crore stuck in income tax disputes

EY India, in a statement issued on budget expectations, said that more than Rs 31 lakh crore is stuck in income tax disputes till the financial year 2023-24. In view of this, there is an urgent need to clear the pending cases with the Commissioner of Income Tax (Appeals) and strengthen alternative dispute resolution mechanisms such as advance pricing agreements and safe havens. Sameer Gupta, National Tax Head, EY India, said that although it may take time to conduct a comprehensive review of the direct tax code, we can see some initial steps towards its implementation in this budget.

Income tax exemption limit may increase

I also expect a reduction in personal income tax to boost demand, especially for lower income groups. The tax consulting and accounting firm said its expectations from the budget are focused on strategic reforms that can propel the economy forward. With an emphasis on fiscal consolidation, tax system simplification and investment-led growth, the Budget is expected to lay a solid foundation for sustainable economic growth. EY expects significant reforms to simplify the tax system and improve taxpayer services, reduce litigation and enhance tax compliance.

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