Budget 2025 to motivate the possibility of income tax deduction: Source – CNBC TV18

As the Union Budget comes, expectations are increasing that the government can expand personal tax relief. According to sources, to promote consumption and accelerate economic reforms, the government is actively considering individual income tax breaks, which can be unveiled in the 2025 budget.

Sources shared, “The purpose of proposed changes is to promote disposable income and increase the power to spend between individuals, thus both direct taxes and GST collections have increased,” Economic activity has to be stimulated.

Sources further revealed that as part of the proposed tax break, “The government is evaluating two primary options for tax relief that will try to make the new tax government more attractive for taxpayers. The first option of the first option is standard deduction It may be to increase the limit, from the current of 75,000 per year, which will offer relief to persons of salaried and pension. “

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“The second option may include adjustment in the tax slab in the new regime. Within this option, there are two proposals under discussion. One has to expand 20% tax slab, with ₹ 12 lakh and ₹ 18 lakhs. Individuals are included or ₹ 20 lakhs annually.

He will align rates along the current tax structures, but potentially provides relief by targeting more for mid-or-income arjak.

Currently, under the new tax regime, persons with income between ₹ 12 lakh and ₹ 15 lakh are taxed at 20%, and people who earn above ₹ 15 lakh are taxed at 30% higher rates.

Sources shared that “the government believes that these possible tax pause may lead to more disposable income, which in turn will promote consumer expenses – an important driver for economic improvement. It is expected to increase both tax receipts and GST collections.

However, sources said that a final decision on tax relief proposals would be taken close to the budget date, “when senior officials of both the Ministry of Finance and the Prime Minister’s Office (PMO) will finalize the proposals.”

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Meanwhile, CNBC-TV18 is waiting for the response from the Finance Ministry to its questions in this regard, and the story will be updated accordingly.

The National Statistical Office (NSO) is estimated to increase by 6.4% on Tuesday, January 7, 2025 in the first advance estimates of national accounts on Tuesday, January 7, 2025 as against 8.2% of 8.2%. For the current financial year ending March 2025, the least is the lowest in the consumer expenses between a general recession in consumer expenses.

It remains to be seen whether any of these proposals will be made through the budget.