New Income Tax 2025-26: No Income Tax Payable Upto Income Of Rs 12 Lakh

By Fnf Correspondent | PUBLISHED: 01, Feb 2025, 12:22 pm IST | UPDATED: 01, Feb 2025, 12:22 pm IST

New Delhi: All eyes will be on the statements on taxes when Finance Minister Nirmala Sitharaman delivers her Union Budget speech on On Saturday (February 1, 2024). The central government led by Prime Minister Narendra Modi, is largely anticipated to give the common person some tax relief this year though, concerns have been voiced in the Economic Survey about difficulties on the fiscal front.

The industries, business sectors and market analysts are earnestly hoping that the NDA 3.0 government's full budget will be on employment generation and inclusive growth.
The first leg of the Budget Session will began on January 31 and will end on February 13 while the second leg will begin on March 10 and end on April 4.

While on one hand the Industry expects Budget to provide thrust to boost the domestic economy holistically by leveraging all possible fiscal tools, the common man is pinning its hopes on the Finance Minister to bring an appreciable change in the tax bracket.

The Finance Minister is expected to continue with the government’s policy of stepping up investments in big-ticket infrastructure projects to spur growth and create more jobs in the economy in the Budget for 2025-26.

There may be sops for the

Limit for tax deduction on interest for senior citizens to be doubled from Rs 50,000 to Rs 1 lakh

Annual limit for TDS on rent to be increased from Rs 2.40 lakh to Rs 6 lakh

Threshold to collect tax at source on remittances under RBI’s Liberalized Remittance Scheme to be raised from Rs 7 lakh to Rs 10 lakh

New bill will be clear and direct in text with close to half of the present law

Will be simple to understand, leading to tax certainty and reduced litigation

As a part of a comprehensive review of customs rates structure announced in the July 2024 budget, FM proposes to remove 7 tariff rates - this is over and above the tariffs removed in the 2023-24 budget

Sudeep Mehrotra says, "In the past 10 years, there has been a consistent increase in the infra spent by the government. And there has been increasingly more clarity in terms of how various components of infra are integrated to create the backbone of our economy. What's still to be seen is that as we grow year after year at 7, 8% and by 2047, reach the idea of Viksit Bharat, it's very important that some of the sectors which support the backbone are actually lead. They grow first and then the demand catches up.

KPMG in India's Direct Tax simplification Survey has found:

-- 58% fav

or reducing corporate tax rates, citing high effective tax rates, including dividend taxes.

-- 34% believe the current rates are fine, and 7% want reductions only for non-resident companies.

-- 43% say the simplified/concessional tax regime has eased compliance, while 24% disagree, and 33% have not yet adopted it.

middle class with some reduction in income tax rates to place more disposable income in the hands of the people to accelerate demand and give a further fillip to growth.