The Union Budget 2025 is just around the corner, and many of us are eagerly awaiting to see what’s in store this year. With rising living costs and ever-evolving financial needs, it’s only natural to hope for some relief that makes life a little easier, especially when it comes to taxes.
As much as we wish for sweeping changes, it’s clear that the government will need to strike a balance between providing tax relief and addressing broader economic priorities.
Here are a few key areas where most people and experts are hoping to see some changes:
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Lower taxes for the middle class: Many are hoping for an increased basic exemption and further revisions in the income tax slabs to ease the burden. However, since the tax slabs were updated just last year under the new regime, it’s unlikely that major changes will happen again.
That said, a little extra disposable income would go a long way, not just in giving us a buffer against inflation, but also in driving the economy forward.
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Simpler ITR forms: Filing income tax returns can be confusing due to complex language and lengthy forms. The government might simplify ITR forms by using clearer language, organising information in a more logical way, and adding easy-to-understand tables to make the process smoother.
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Crypto tax reforms: Currently, crypto assets are taxed at a high rate of 30%, with an additional 1% TDS on transactions. Many investors and industry experts are hoping for a review of these rules to bring crypto taxation in line with other asset classes like stocks and mutual funds, making it more practical and fair.
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Affordable health insurance: With rising healthcare costs, people are looking forward to relief in the form of lower GST rates on health insurance premiums. Additionally, an increase in the Section 80D deduction limit for health insurance expenses could make insurance more affordable for families and individuals.
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Higher deductions: Like every year, there’s always hope that the deduction limit under Section 80C will be revised. However, with the growing popularity of the new tax regime (where these deductions aren’t available), this change seems less likely.
Lastly, The Direct Tax Code, introduced back in 2009 was meant to replace the Income Tax Act. However, it has not yet been implemented. This has led to speculations that the government might introduce a new income tax bill this year. The goal would be to simplify the tax laws and ITR filing process in order to reduce litigation and boost compliance.
What are your expectations from this Union Budget?