
As the Union Budget 2025-26 approaches, speculation is rife about significant changes in personal tax structures. Reports from Moneycontrol suggest that the government may consider making annual income up to ₹10 Lakh tax-free and introducing a new 25% tax slab for individuals earning between ₹15 Lakh and ₹20 Lakh.
These potential measures are aimed at offering relief to taxpayers and enhancing disposable income.
A pre-budget survey conducted by consulting firm Grant Thornton Bharat highlights strong taxpayers demand for reforms in the personal tax structure.
The survey also reveals that 72%of taxpayers have switched to the new tax regime, indicating its growing acceptance. However, 63% still seek enhanced incentives under the old tax regime, underscoring the need for a balanced approach to accommodate diverse preferences.
As digitalization reshapes financial systems, taxpayers are increasingly calling for streamlined processes:
The survey also highlights other key exceptions:
While the government has indicated that the old tax regime may eventually be phased out, taxpayers continue to value its benefits. Reports of new tax slabs and higher exception limits, if implemented, would make the new tax regime attractive while addressing the demands of a majority seeking relief from the current structure.
Finance Minister Nirmala Siraraman will present the Union Budget 2025-26 on February 2, breaking the tradition of a February 1 announcement, reportedly due to Assembly Elections in some states. With taxpayers eagerly awaiting announcements, all eyes are on how the government will balance growth, quality, and simplification in this critical fiscal year.
Stay tuned for live updates on February 2 to see how these speculations shape up in the actual Budget.