Budget 2025 Income Tax Expectations: Will salaried earners up to Rs 15 lakh get tax relief? Read what experts expect

Budget 2025 Income Tax Expectations: Within a fewer hours from now, Finance Minister Nirmala Sitharaman is acceptable to present her 8th consecutive fund code connected Saturday, February 1, 2025.

She made immoderate important changes successful the caller taxation authorities successful her erstwhile fund presumption successful July 2024 erstwhile she accrued taxation slabs to 6.

For this year, experts expect her to alteration income taxation rates for taxpayers successful up to the Rs 30 lakh yearly income bracket. Here's what experts expect from her.

Ashish Agrawal, Partner, Dhruva Advisors, says that middle-class taxpayers are experiencing reduced disposable income owed to precocious taxes, inflation, and rising surviving expenses.

He further says that revisions to taxation slabs and deductions nether Section 80C person not been updated for galore years and are owed for revision successful enactment with ostentation rates. 

"The tax-free income threshold should beryllium accrued to Rs 10 lakh, with a 10 per cent complaint for income up to Rs 20 lakh, a 20 per cent complaint for income up to Rs 30 lakh, and a 30 per cent complaint for incomes supra Rs 30 lakh."

He besides expects the authorities to summation the Section 80C deduction bounds to Rs 5 lakh

"The modular deduction for salaried individuals tin beryllium based arsenic a percent of salary, accidental 10 per cent oregon 20 per cent. Likewise, higher exemption limits should beryllium acceptable for elder and ace elder citizens."

In its report, SBI Research expects the rationalisation of taxation slabs from the Finance Minister. "For individuals earning betwixt Rs 10 lakh and Rs 15 lakh annually, the taxation complaint should beryllium reduced from 20 per cent to 15 per cent.

Nandita Tripathi, partner, Deloitte India, expects the authorities to make a abstracted conception for location indebtedness repayment with a combined maximum deduction of up to Rs 5 lakh for some main and involvement components.

"Currently, the repayment of the main constituent of location loans is eligible for taxation deduction nether Section 80C. In contrast, the repayment of involvement constituent of up to Rs 2 lakh qualifies for taxation deduction nether Section 24(b)," she says.

"However, with aggregate concern options, tiny savings instruments, security policies, pension plans, etc., crowding Section 80C, galore location indebtedness borrowers stay bereft of availing taxation deductions connected their full location indebtedness main repayments. Similarly, the precocious headdress connected Section 24(b) becomes inadequate for galore location indebtedness borrowers, particularly successful the archetypal years of their location indebtedness tenure.

"Hence, determination should beryllium a abstracted conception for location indebtedness repayment with a combined maximum deduction of up to Rs 5 lakh for some main and involvement components. This would boost location buyers’ sentiments and, thereby, summation request successful the lodging industry," says Nandita.