Tax will have to be paid according to the slab on income above Rs 12 lakh annually. However, with tax planning, you can save tax even on income above Rs 12 lakh. Sometimes the tax on your salary can also be zero. Even if your annual salary is Rs 13.7 lakh, you can avoid paying any tax by following some steps.

According to tax experts, to make tax zero on income up to Rs 13.7 lakh per annum, one has to invest in the National Pension System (NPS). In the new tax regime, tax deduction is available on NPS contribution up to 14% of the basic salary (plus DA). This deduction is available under IT Act Tech Section 80CCD (2). However, this deduction is available only when the employer/company provides the facility of investing in NPS to the employee.

This is how you can save tax on an annual salary of Rs 13.7 lakh

Let’s assume that an employee’s annual salary is Rs 13.7 lakh. In this, 50% of the basic salary is Rs 6.85 lakh, so the NPS contribution at 14% will be Rs 95,900. The employee can claim tax deduction on the annual contribution of Rs 95,900 in NPS. If the standard deduction of Rs 75,000 is added to this amount, then the total deduction will become Rs 1.70 lakh. In this way, he will not have to pay any tax.

NPS was started in the year 2004.

Let us tell you that if you also want to get a big pension after your retirement, then National Pension System can be a good option for you. NPS is a government scheme, which is linked to the market. NPS was started by the government in 2004. It was opened for the general public in 2009.

The post Tax Saving: Not only ₹12 lakh… ‘0’ tax on income up to ₹13.7 lakh, see the complete calculation first appeared on Rightsofemployees.com.

Who can take advantage

Salaried employees and pensioners get the facility of getting tax exemption through standard deduction. If you choose the new tax slab to pay income tax, then you will get the benefit of standard deduction of Rs 75,000. On the other hand, salaried taxpayers get only a standard deduction of Rs 50,000 if they choose the old tax regime.

Understand with an example

Suppose you are a salaried person and your annual income is 13 lakhs and if you choose the new tax regime, then the standard deduction will be reduced by Rs 75,000. Now Rs 12,25,000 will be left, tax will be levied on it according to the slab. On the other hand, if your income is Rs 12,75,000, then according to the new tax regime, you will not have to pay income tax because income up to 12 lakhs is tax free and you will get the benefit of standard deduction of Rs 75,000. On the other hand, if you choose the old tax regime on an annual income of 13,00,000, then you will get the benefit of standard deduction of up to Rs 50,000 in the total package. In such a situation, your tax will be calculated on Rs 12,50000 instead of 13 lakhs.

After 2005, it was implemented again in 2018

In India, there was a provision of standard deduction for salaried persons before the year 2005, but it was discontinued in the budget of that year. Instead, a provision was made for deduction of Rs 19,200 in the form of transport allowance and Rs 15,000 in the form of medical allowance in some special items. But the employees were not satisfied with this. The employees believed that businessmen and consultants claim exemptions by showing many types of expenses, but salaried people have very few options. To address this complaint of the employees, the government again implemented standard deduction in the budget of the year 2018. But the exemption in the form of transport allowance and medical reimbursement was abolished.

What is the benefit of standard deduction

Standard deduction is better for employees than the exemptions in the form of transport allowance and medical reimbursement because there was more paperwork to get the exemption of transport allowance and medical reimbursement. Whereas through standard deduction, the amount is deducted directly from the gross salary of the salaried person and after this the taxable income is determined on the remaining salary.

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Finance Minister Nirmala Sitharaman has made a big announcement for the insurance sector in Budget 2025-26. Finance Minister Nirmala Sitharaman has talked about increasing the FDI limit for the insurance sector from 74% to 100%. She has said that a forum will be set up for regulatory coordination and development of pension products. A revised central KYC registry will be launched in 2025 to simplify the KYC process.

The Finance Minister said, “In the case of income tax, emphasis will be laid on trust first, then investigate. The new Income Tax law will come next week. Foreign direct investment in the insurance sector will be increased from 74% to 100%. This will ensure that the entire premium amount received by insurance companies from customers is invested in India itself. Under the Jan Vishwas Bill 2.0, more than 100 provisions will be removed from the scope of crime.”

Insurance companies were seeking tax benefits to buyers in the upcoming Union Budget and incentives to sell policies. According to the Insurance Regulatory and Development Authority of India (IRDAI), the country’s insurance penetration in 2023-24 will be 3.7 percent compared to 4 percent in 2022-23. The life insurance industry’s expansion declined marginally from 3 percent last year to 2.8 percent during 2023-24. In the case of the non-life insurance industry, the figure remained at 1 percent during 2023-24, same as in 2022-23.

India’s insurance sector premium growth expected to remain strong among G20 countries
An earlier Swiss Re report said India will lead the G-20 with an average premium growth of 7.3 per cent during 2025-29 and become the fastest growing insurance market in the group. Speaking about expectations from the budget, Neha Parikh, Vice President and Sector Head (Financial Sector Ratings), ICRA Ltd, said that given the weak solvency position of public sector general insurance companies, the announcement of allocation in the budget for their recapitalisation will be positive. Parikh said, “Given the low penetration in the insurance sector, the government may announce measures to encourage access, especially for small size policies.”

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Finance Minister Nirmala Sitharaman has announced the removal of import duty on 12 critical minerals such as lithium-ion battery scrap, cobalt products, LEDs, zinc. Presenting her eighth consecutive budget on Saturday, the Finance Minister said, “I propose to completely remove custom duty on 25 critical minerals and reduce it on two others. This will promote the processing and refining of these minerals and ensure their availability for these important sectors.”

In addition, he proposed to add 35 capital goods for electric vehicle battery manufacturing and 28 for mobile phone battery manufacturing to the list. This will boost the manufacturing of lithium-ion batteries in India and create more employment opportunities.

Sitharaman said, I now propose to completely remove custom duty on cobalt powder and waste, lithium-ion battery scrap, lead, zinc and 12 other critical minerals. This will ensure availability of raw materials for manufacturing and provide employment opportunities to the youth.

Keeping in mind the long gestation period of shipbuilding, he proposed to continue the exemption in basic customs duty (BCD) on raw materials, components, consumables and parts for shipbuilding for another 10 years. Similarly, the same exemption will be extended to the ship breaking industry to enhance competitiveness.

Further, in line with the ‘Make in India’ policy and to correct the inverted duty structure, he proposed to increase the customs duty on interactive flat panel displays from 10% to 20% and reduce it to 5% on open cells and other components. He also proposed complete removal of basic customs duty on ‘Wet Blue Leather’ to promote domestic value addition and employment.

Sitharaman also proposed that not more than one cess or surcharge would be levied. She also proposed to abolish the social welfare cess levied on 82 tariff lines.

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Even before presenting the Budget 2025, Finance Minister Nirmala Sitharaman had indicated that this budget will be dedicated to the common man and the middle class. She made these indications come true through her announcements and provided relief to the working class and the middle class by giving a big exemption in income tax. TDS and TCS will be reduced, due to which they will have more money in their hands. TDS deducted on salary will be reduced.

Under this, now FD deduction of Rs 1 lakh has been made. The amount to be sent abroad has also been increased to Rs 10 lakh. TCS will now be charged only from those who do not have PAN. The facility of updating the return has also been provided, which will benefit 90 lakh taxpayers. The return can be re-filed i.e. updated return in the assessment year up to 4 years. Now, if the taxpayers have 2 properties then no tax will be levied on them. Till now it was limited to only one property. For senior citizens, the deduction on FD has been increased from Rs 50,000 to Rs 1 lakh, while the exemption for filing ITR has been increased from Rs 5 lakh to Rs 10 lakh.

Gift to the middle class

The middle class will not have to pay any tax up to Rs 12 lakh. Till now it was only Rs 7 lakh. This has been increased by Rs 5 lakh at a time and no tax will be taken from those earning up to Rs 1 lakh every month. A tax deduction of Rs 75 thousand will also be given in this. No tax will be levied on income up to Rs 12 lakh 75 thousand.

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The post Tax Free Income Limit: Big relief for employed people, tax free up to Rs 12 lakh 75 thousand first appeared on Rightsofemployees.com.

Let us tell you that currently the time limit for filing revised income tax is two years. This is a big relief for those who are unable to file income tax returns on time or make some mistakes.

Many big announcements were made

Apart from this, the limit of TDS for senior citizens was made Rs 1 lakh in the budget. The Finance Minister said that the annual limit of TDS on rent will be increased from Rs 2.40 lakh to Rs 6 lakh.

These are also announced

Salaried people have got a big relief in the budget. In the new tax system, there will be no tax on annual income up to Rs 12 lakh. The Finance Minister said that those with an annual income of up to Rs 12 lakh will get a benefit of Rs 80,000 by not paying any tax. At the same time, a person with an annual income of Rs 18 lakh will get a tax benefit of Rs 70,000. Apart from this, the limit of TDS deduction under RBI’s Liberalized Remittance Scheme (LRS) will be increased from Rs 7 lakh to Rs 10 lakh.

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The post Income Tax Time limit: Finance Minister announced the extension of revised income tax time limit to 4 years – Key Details inside first appeared on Rightsofemployees.com.

In the budget, the government has also made many other big announcements regarding farmers. These include Dhan Dhanya Krishi Yojana, help to 1.7 crore farmers through agriculture program, agriculture scheme to cover 100 districts with low productivity.

Finance Minister Nirmala Sitharaman said that the goal of the National Mission for Edible Oil and Seeds is to bring self-sufficiency in this sector. Under this, we will start a 6-year mission to become self-sufficient in pulses. – Central agencies will purchase tur, urad, lentils in the next 4 years. Makhana Board will be formed in Bihar to improve processing, value addition.

In the budget, the government said that agricultural district programs will be developed on the lines of the aspiring district program. Crop diversification, irrigation facilities, availability of loans will help 1.7 crore farmers. This scheme will adopt crop diversification, increase storage after harvesting. This will help 1.7 crore farmers.

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The post Kisan Credit Card Limit: Govt has increased the limit of Kisan Credit Card from Rs 3 lakh to Rs 5 lakh. Key Details Inside first appeared on Rightsofemployees.com.

The rising cost of treatment in the hospital has increased the pressure on them. In such a situation, the government needs to make announcements regarding senior citizens in the budget.

No tax on income up to 10 lakhs

Senior citizens are expecting an increase in the tax exemption limit from the budget. Currently, there are two categories of senior citizens in terms of income tax. The first category includes people from 60 to 80 years of age, who are called senior citizens. The second category includes people aged 80 years and above, who are called super senior citizens. If the annual income of a senior citizen is up to Rs 3 lakh, then he does not need to pay tax in the old regime of income tax. If the annual income of a super senior citizen is Rs 5 lakh, then he does not have to pay tax in the old regime. The government should increase the tax exemption limit for both types of senior citizens to Rs 10 lakh. This is what senior citizens are expecting.

Discount on medical tests

Senior citizens need the most care in old age. In old age, most of the money is spent on treatment, medicines and tests. The government needs to allow deduction of Rs 1 lakh per year on medical care. This should include OPD, tests and other expenses related to treatment. This will benefit crores of senior citizens.

Get tax exemption on NPS pension

At present, 60% of the money in NPS is received at the age of 60. The remaining 40% is used as pension in the form of annuity. This pension comes under the purview of tax. There is a need to keep it out of the purview of tax. This will provide great relief to the elderly. By not paying tax, they will get more pension in their hands.

Exemption for filing income tax return

Currently, senior citizens aged 75 years and above are not required to file income tax returns. Those whose source of income is only pension and interest income. Tax experts believe that the government should abolish the age limit of 75 years.

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The post Budget 2025: Tax exemption limit for senior citizens increased to Rs 10 lakh, Key Details first appeared on Rightsofemployees.com.

It is being said that the government may announce some exemptions in the new tax regime. Experts are demanding to increase HRA, Section 80C tax deduction and standard deduction of Rs 1 lakh in Budget 2025.

Standard Deduction Limit

A new tax system was introduced in the Union Budget 2020, which aims to simplify the tax infrastructure. However, no exemption is given in this. Only standard deduction is available. The benefit of standard deduction is also given under the old tax system. Currently, the standard deduction in the new tax system is Rs 75 thousand, which can be increased to Rs 1 lakh. At the same time, the standard deduction in the old tax system is Rs 50 thousand. This can also be increased to Rs 1 lakh.

Limit of Section 80C

Under Section 80C of the Income Tax Act, 1961, taxpayers are given tax exemption on investment up to Rs 1.5 lakh. In such a situation, now there is a demand to increase its limit, which has not changed for a long time. There is a demand to increase it to Rs 2 lakh. Currently, investors can claim exemption by investing in places like PPF, LIC, PF and home loan.

Home loan

individuals are eligible to claim deduction on payments made towards the principal amount of the home loan under section 80EE. The deduction for home loan interest payment can be up to Rs 50,000 per financial year. There is a demand to increase this in the budget as well.

HRA exemption

is also a common demand of taxpayers that HRA exemption should be included in the new tax system. Currently, this benefit is applicable only under the old tax system, which leads to tax saving. Experts believe that the inclusion of this exemption will be of great help to people.

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The post Budget 2025: HRA, 80C and standard deduction…These big announcements can be made in the budget first appeared on Rightsofemployees.com.

According to a report by Business Standard, the government may increase the credit card limit. At present, the total limit of credit cards given to farmers is Rs 3 lakh. Now there is talk that the government is considering increasing this limit to Rs 5 lakh.

The limit can be increased from Rs 3 lakh to Rs 5 lakh

According to the report, an official said that the limit of Kisan Credit Card has not been increased for a long time. Due to which there is a demand to increase it. Through such budget, the government can increase the limit from Rs 3 lakh to Rs 5 lakh. The government can take this step to strengthen the rural economy.

Loan available at 4%

Farmers get loan from the government at 9 percent on Kisan Credit Card. But the government gives 2 percent subsidy to the farmers. But on repaying the loan on time, 3 percent more interest is deducted. Due to which farmers get this loan at only 4 percent. Let us tell you, the credit card scheme was started in 1998. Crores of people are getting the benefit of this government scheme.

Apart from this, farmers will keep an eye on any big announcement from the government. Be it crop insurance scheme or Kisan Samman Nidhi Yojana, farmers are waiting for big announcements regarding these too. Currently, three installments of Rs 2,000 each are given under the Kisan Samman Nidhi Yojana.

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The post Budget 2025: Govt can raise Limit of Kisan Credit Card (KCC) up to 5 lakh rupee – Details Here first appeared on Rightsofemployees.com.

Currently, the maximum pension available under the Atal Pension Scheme is Rs 5,000. The unorganized sector has been demanding to increase the pension amount under Atal Pension for a long time. However, if sources are to be believed, the government can increase the pension amount under Atal Pension to Rs 10,000 in the budget. This proposal is in the final stage of approval.

Atal Pension Yojana pension hike will be announced in the budget

The budget will be presented on Saturday, February 1 this week. A government official told Moneycontrol that the proposal to increase the minimum pension guarantee to Rs 10,000 is in the final stage. The government has almost agreed on this. It is possible that an announcement regarding this will be made in the budget.

When was Atal Pension Yojana started

Prime Minister Narendra Modi launched this scheme on 9 May 2025. Atal Pension Yojana is a social security scheme. The aim of Atal Pension Yojana is to provide financial security to laborers, workers, elderly, especially people belonging to the poor section. This scheme was named after former Prime Minister Atal Bihari Vajpayee. Currently, by investing under this scheme, people get a pension of Rs 1,000 to Rs 5,000 after 60 years. 40 years of age is the maximum limit to enter these investment schemes.

7 crore people have joined Atal Pension Yojana

As of October 2024, more than 7 crore people have joined the Atal Pension Yojana during the financial year 2024-25. This scheme is being run by the Pension Fund Regulatory and Development Authority (PFRDA). Under the scheme, beneficiaries get a maximum minimum guaranteed pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 or Rs 5,000 every month after the age of 60 according to their investment. The amount of pension depends on your contribution.

You will have to invest this much according to your age

For example, if someone deposits money for a monthly pension of Rs 1,000 at the age of 18, he will have to pay Rs 42 every month. For a pension of Rs 5,000, the maximum pension that will have to be paid is Rs 1,454. If you start investing for a pension of Rs 5,000 at the age of 18, then this money will be reduced.

Eligibility

People between 18 and 40 years of age can invest in this scheme. The applicant must have a bank account. People who pay income tax are not eligible for this scheme. The contribution amount varies according to the pension amount.

Offline method

Go to your bank where you have a savings account. Take the registration form from the bank or download it from their website. Fill in the form with the correct information and choose the pension option. Submit your Aadhaar card and other required documents along with the form. Once the application is accepted, you will receive a message on your registered mobile number.

Online Process

Visit your bank portal or mobile banking app. Login with login ID and password. Search for ‘Social Security Scheme’ or ‘Atal Pension Yojana’. Fill the application form and provide all the required details. Give consent for auto-debit for monthly contribution. Verify the details before submitting the form and then submit it.

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The post Atal Pension Hike: Govt may increase the pension amount under Atal Pension to Rs 10,000 – Check here first appeared on Rightsofemployees.com.

Whether the limit of standard deduction is increased or the limit of 80C is increased. Here we are telling you that in the last budget 2024-25, the government had made many big announcements related to income tax, which is important for all taxpayers to know.

1. Announcement of new tax slab

In the last budget, the government changed the tax slabs in the new tax system to provide relief to taxpayers. The new tax slabs were as follows:

• Rs 0-3 lakh: 0% tax
• Rs 3-7 lakh: 5%
• Rs 7-10 lakh: 10%
• Rs 10-12 lakh: 15%
• Rs 12-15 lakh: 20%
• Rs 15 lakh and above: 30%

Due to these new slabs, taxpayers can save up to Rs 17,500 annually.

2. Increase in standard deduction

The limit of standard deduction has been increased from Rs 50,000 to Rs 75,000.

The deduction limit for family pensioners has been increased from Rs 15,000 to Rs 25,000. This will provide huge tax relief to salaried and retired employees.

3. Deduction in NPS

The deduction limit on employer’s contribution to the National Pension System (NPS) has been increased from 10% to 14%. This move will promote savings in retirement funds.

4. Changes in capital gains tax

Short Term Capital Gains Tax (STCG) rate increased from 15% to 20%.

The rate of Long Term Capital Gains Tax (LTCG) was increased from 10% to 12.5%.

LTCG exemption limit on equity investments increased from Rs 1 lakh to Rs 1.25 lakh.

The purpose of this change is to encourage investors to invest for a long time.

5. TCS on luxury goods

Tax Collection at Source (TCS) was implemented on luxury goods worth more than Rs 10 lakh. This rule came into effect from January 1, 2025. Its purpose is to keep an eye on expensive transactions and prevent tax evasion. Through these changes, the government has tried to give relief to taxpayers as well as strengthen tax collection.

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The post Taxpayers Update: 5 major rules related to income tax have been changed – Key Details Inside first appeared on Rightsofemployees.com.

According to sources, Union Finance Minister Nirmala Sitharaman may announce the implementation of these labor codes in a phased manner, which will not only affect the employees but will also affect the businessmen. These new labor codes will be implemented in three phases, creating new challenges and opportunities for both employees and companies.

Phased implementation of Labor Codes

The aim of these new labor codes is to streamline the workplace and strengthen the social security of employees. This change will affect all types of businesses, small and large. In the first phase, large companies with more than 500 employees will be required to follow these codes. In the second phase, medium-sized companies with 100-500 employees will be brought under its purview. In the third phase, these codes will be implemented on small companies with less than 100 employees.

Small businesses will be given about two years to implement these rules. Considering that MSMEs (micro, small and medium-sized enterprises) account for 85% of India’s business structure, their transition will be particularly important.

Impact on working hours and salaries

These new rules may also include a policy of working four days a week and resting for three days. Its purpose is to create a work-life balance for employees. However, the four-day working rule may lead to an increase in working hours, and provident fund (PF) deductions may increase, which may reduce the salary of employees.

Phased implementation of Labor Codes

The aim of these new labor codes is to streamline the workplace and strengthen the social security of employees. This change will affect all types of businesses, small and large. In the first phase, large companies with more than 500 employees will be required to follow these codes. In the second phase, medium-sized companies with 100-500 employees will be brought under its purview. In the third phase, these codes will be implemented on small companies with less than 100 employees.

Small businesses will be given about two years to implement these rules. Considering that MSMEs (micro, small and medium-sized enterprises) account for 85% of India’s business structure, their transition will be particularly important.

Impact on working hours and salaries

These new rules may also include a policy of working four days a week and resting for three days. Its purpose is to create a work-life balance for employees. However, the four-day working rule may lead to an increase in working hours, and provident fund (PF) deductions may increase, which may reduce the salary of employees.

Negotiations with States and the Framework for Regulations

The labour ministry is in talks with various states, such as West Bengal and Delhi, to implement these codes, where draft regulations are being finalised. The government hopes to implement the Wages and Social Security Code by March 2025, while rules for the rest of the codes are being framed with the remaining states.

What are Labor Codes?

The Government of India has consolidated 29 central labour laws into four major labour codes that aim to strengthen businesses and enhance social security of employees. These codes include:

1. Code on Wedges
2. social security code
3. Industrial Relations Code
4. Occupational Safety, Health and Working Conditions Code

These improvements aim to improve the workplace environment as well as provide better safety to employees.

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The post New Labor Codes: Govt may announce implementation of new labor codes in upcoming budget 2025 first appeared on Rightsofemployees.com.

For this reason it is also being called the budget of expectations. According to experts, the government will focus on things like health sector, GDP growth, inflation, tax slab etc. in this budget. Changes can be made in many policies to accelerate growth in the country.

Apart from this, changes can also be seen in income tax. However, what will happen in this year’s budget? This will be known only when Union Finance Minister Nirmala Sitharaman will present the country’s full budget on February 1. In this connection, let us know why this year’s budget can be memorable and what changes can be made in it?

Changes in income tax

Finance Minister Nirmala Sitharaman recently said that more than 65 percent of taxpayers in the country have adopted the new tax regime. This means that 2 out of every 3 people are filing taxes under the new tax regime. The government introduced the new tax regime in the year 2020. However, now the government’s focus is on making the new tax regime more attractive. For this reason, many changes are being made continuously in the new tax regime.

Last year, under the new tax regime, the standard deduction was increased from Rs 50,000 to Rs 75,000. In such a situation, this year the government can make the new tax regime even more attractive in the budget. According to media reports, the limit of standard deduction can be increased from Rs 75,000 to Rs 1 lakh.

At the same time, the 20 percent tax rate range is likely to be increased from Rs 12-15 lakh to Rs 12-20 lakh. This change can benefit those whose income is between Rs 15-20 lakh.

Tax Slabs

If media reports are to be believed, the government may make changes in the tax slabs in this year’s budget. It is expected that a tax rate of 30 percent may be implemented on income above Rs 20 lakh. If these changes happen, many more people will also shift from the old tax regime to the new tax regime.

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The post Budget 2025: Major Changes May In Income Tax Rules And Tax Slabs – Key Details Inside first appeared on Rightsofemployees.com.

According to sources, these new labor codes will be implemented in three phases. The working hours of the employees will increase. Also, there will be an option to work 4 days a week. If the amount deducted in PF increases, then the salary received every month may decrease.

Labor code can be implemented in three phases

The Labor Code will give time to all small and big businesses and businessmen to implement new policies. If the government announces these codes in Budget 2025, then it will be implemented in the coming financial year. These codes will not only make things easier for businessmen and companies, but employees will also get better social security.

• In the first phase, big companies with more than 500 employees will be required to follow these codes.
• In the second phase, medium-sized companies with 100-500 employees will be brought under its scope.
• In the third phase, these codes will be implemented on small companies with less than 100 employees.

How much time will small businesses get to implement?

Under the new rules and plans of the Labor Code, it will take about two years for small businesses to implement these rules. Let us tell you that MSME i.e. small industries account for more than 85% of India’s business structure.

Talks are going on with the states regarding labor code

The Labor Ministry is in talks with the states to implement these codes. At present, the ministry is busy finalizing the draft regulations with states like West Bengal and Delhi. The government wants to implement the Code on Wages and the Social Security Code in the first phase. The draft rules are expected to be ready with all the states by March 2025.

What are Labor Codes?

The Government of India has consolidated 29 central labor laws into four labor codes. Their main purpose is to strengthen businesses and strengthen the social security of employees.

• Code on Wedges
• social security code
• Industrial Relations Code
• Occupational Safety, Health and Working Conditions Code

Four days of work and three days of rest in a week – rules of the Labor Code

Labor codes may also include a policy of working four days a week and resting three days a week. The purpose of this rule is to create a work-life balance for employees. However, the rule of working four days a week will increase the working hours. Also, the amount deducted in the Provident Fund will increase. In such a situation, the salary received may be less.

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The Indian economy is slowing down. Its impact is being seen in all sectors. Especially, the real estate sector, which is one of the largest employment generating sectors in the country. That is why the industry is hoping that Finance Minister Nirmala Sitharaman will take special measures to increase demand in the real estate sector in the Union Budget to be presented on February 1, 2025 and will also give some relief on tax related fronts. This will also boost economic growth. Let us know what the real estate sector expects from the Finance Minister.

Home buyers should get relief

Atul Monga, Founder and CEO of Basic Home Loan, says that in the Union Budget, tax exemption should be given to those paying home loan EMI – like under Section 80C. Increasing the cap of Rs 1.5 lakh in principal repayment and increasing the exemption of Rs 2 lakh on interest under Section 24B can be a good initiative.

He said that this will provide some relief to home buyers from rising property prices and inflation. Currently, 28% tax is levied on construction material like cement, by reducing this, the cost can be reduced significantly. This will directly benefit home buyers.

Demand to reduce tax burden
Sahil Agarwal, CEO of Nimbus Group, also believes that home buyers should get more tax relief. He said, ‘The taxes and fees imposed on home buyers should be rationalized. It is more than 12 percent of the property value in many states. In the last budget, the Finance Minister had appealed to the state governments to resolve this issue, but there has been no significant progress yet. Also, we request the government to reconsider and provide relief on Long Term Capital Gain (LTCG) tax on real estate.’

Pradeep Aggarwal, founder and chairman of Signature Global (India) Limited, also suggests that the real estate sector can benefit greatly from tax exemption. He said, ‘Property prices and construction costs have increased in the recent past. Therefore, increasing the limit of tax exemption on home loans to Rs 5 lakh can provide great relief to home buyers. Giving industry status to the real estate sector and reforms related to GST input tax credit can also play an important role in boosting demand.’

Getting industry status will change the situation

Dhruv Aggarwal, Group CEO of Housing.com and PropTiger.com, also advocates giving industry status to the real estate sector. He says, ‘The real estate sector has been waiting for industry status for a long time. If it gets industry status, it will become easier for developers to raise funds. This will help them reduce borrowing costs amid rising input and land costs.’

Agarwala says that simplifying GST rates and streamlining the input tax credit mechanism can also be good initiatives. This will help make housing more accessible and affordable for buyers. He said that due to rapid urbanisation, it is also important to implement policies that give priority to developing new greenfield cities and upgrading the infrastructure of existing urban centres to meet the growing demand.

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The middle class has high hopes from the budget to be presented by Finance Minister Nirmala Sitharaman on February 1. The middle class has not got any major relief in the last two-three budgets. The middle class is expected to get a big relief from the change in tax slabs in Budget 2025.

This step can not only improve the economic condition of the people, but will also give new energy to the slowing economy. The government is considering changes in the income tax slabs, which can benefit salaried taxpayers earning up to Rs 20 lakh annually.

According to a report by Business Standard, the government is currently considering two major options. First, making annual income up to Rs 10 lakh completely tax-free. Second, bringing a new tax slab of 25% on income of Rs 15 to 20 lakh. Currently, 30% tax is levied on income above Rs 15 lakh. If the budget allows, both options can be implemented. For this, the government is ready to bear a revenue loss of Rs 50,000 crore to Rs 1 lakh crore.

The concession of the previous budget was incomplete

In 2023, the Finance Minister had increased the rebate under Section 87A and made income up to Rs 7 lakh tax-free, but for this there was a condition of giving up most of the deductions. Now under the new tax system, the tax exemption limit can be increased to make income up to Rs 10 lakh tax-free. Currently, with a standard deduction of Rs 75,000, those with income up to Rs 7.75 lakh do not have to pay tax.

The economy will get a boost

If the government increases the scope of tax exemption or brings a new slab, then it can help in promoting urban consumption, especially when the country’s GDP growth is slowing down. GDP growth in the second quarter of FY 2025 was 5.4%, which is the lowest in seven quarters. Tax concessions will increase the spending capacity of the people, which will increase demand in the market and strengthen the economy.

PwC consultant and former CBDT member Akhilesh Ranjan believes that a 25% tax slab should be introduced for those earning between Rs 15 lakh and Rs 20 lakh. This will leave more money with the middle class, which will increase the purchase of consumer durables (such as refrigerators, TVs). IASCC professor Anil K Sood says that a 30% tax on income a little more than Rs 15 lakh is unfair. He suggested that the government should provide relief to the salaried class, but without changing the existing incentives.

Focus on fiscal deficit
Professor Sood said that the government is more focused on fiscal deficit. He also said that budget is made for capital expenditure, but there is lack in spending it. For example, National Highway Authority of India (NHAI) has sufficient funds, but they are being used to repay loans.

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Atal Pension Yojna: Finance Minister Nirmala Sitharaman is going to present the budget for the financial year 2025-26 on February 1, on which the eyes of the whole country are fixed. It is expected that in this budget, the government can make a big announcement regarding Atal Pension Yojana (APY).

With the aim of increasing social security, the government can double the amount of minimum pension available under the scheme. At present, the minimum monthly pension amount is Rs 1,000 to Rs 5,000. However, it depends on your contribution how much pension you will get.

Government’s plan to double monthly pension

According to sources, the government can approve the proposal to increase the pension available under the scheme. The proposal to increase the minimum guarantee amount to Rs 10,000 is in the final stage and it can be announced in the budget. Let us tell you that Atal Pension Yojana (APY) is a pension scheme of the government,

which aims to provide financial help to the poor and those working in the unorganized sector in old age. In this scheme started by the Pension Fund Regulatory and Development Authority (PFRDA) in the year 2015-16, those who deposit money get a monthly pension of Rs 1,000 to Rs 5,000.

This is the biggest feature of the scheme

The biggest feature of Atal Pension Yojana is that if the beneficiary dies, the nominee gets the entire money. To open an Atal Pension Yojana account, the age should be between 18 to 40 years.

If you want to apply for the scheme, you must have your own bank account. To avail the scheme, take the registration form from the bank in which you have a savings account or download it from the website. After this, fill the details in the form and choose the pension option. Then submit the form along with Aadhar card and other necessary documents.

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The purpose of bringing DTC is to simplify the provisions, remove irrelevant sections and make the language more understandable for the common people. Tax experts believe that this will simplify tax laws, reduce legal disputes and make the entire process easier for taxpayers.

The committee formed to review the Income Tax Act is deciding whether the new law will be in two parts or three. The government had earlier said that the draft law would be released for public comments, but now it has been decided that the bill will first be introduced in Parliament. After this, it can be amended based on the feedback of taxpayers and experts.

According to a report in the Times of India, officials from the Finance Ministry and the Prime Minister’s Office (PMO) have worked closely with the committee to finalise the bill over the last six to eight weeks. The Finance Minister is expected to mention the
new bill in her budget speech on February 1. However, it is not yet decided whether the bill will be introduced in the first part of the session or in the second part.

Third attempt to change the Income Tax Act

This is the third attempt when an attempt is being made to rewrite the Income Tax Act. Earlier, the Direct Tax Code Bill was introduced in 2010. After this, the Modi government formed a panel of experts, but their report was not made public and the recommendations were not implemented.

Thousands of provisions have been directed to be removed in the new law. Also, sections that have become irrelevant over the years will also be excluded. The committee has also been instructed to make the language as simple as possible so that common people can understand it easily. However, the government is not including new issues in it at the moment.

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Nirmala Sitharaman Budget 2025: Finance Minister Nirmala Sitharaman will present the budget for the eighth consecutive time on February 1. This time it will be the second full budget of the third term of the NDA government led by Prime Minister Modi. In every budget, the most discussed topic is the relief in income tax and the announcement regarding farmers. In the budget presented in July 2024, the Finance Minister gave relief to the middle class by increasing the limit of standard deduction to Rs 75,000 under the new tax regime. Apart from this, many steps have been taken by the government to provide relief to the middle class on various things including income tax. Income up to Rs 7 lakh is tax free

Amidst all this, the budget presented by Finance Minister Nirmala Sitharaman in the year 2023 is discussed among the middle class till date. In this budget, the biggest relief was given to the employed middle class. Taxpayers got the most benefit from the announcement made by Finance Minister Nirmala Sitharaman regarding income tax. On February 1, 2023, Nirmala Sitharaman, during her budget speech, announced not to pay any kind of tax on income up to Rs 7 lakh under the new tax regime.

Crores of salaried class got benefit

Crores of salaried class people have got the most benefit of this income tax exemption given by the government. After this, in the budget presented in July 2024, the limit of standard deduction under the new regime was increased to 75000. With this change, people earning up to Rs 7.75 lakh every year will not have to pay any kind of tax. After this change in the rule, people were in doubt as to what would happen to those earning more than Rs 7 lakh?

What is the New Tax Regime?

The New Tax Regime was first introduced by the government in the financial year 2020-21. The tax rate in this is low but some tax deductions and exemptions have been abolished under it. Under this, a standard deduction of Rs 50,000 was included in the year 2023. After one year, it was increased to Rs 75000. Under the new tax regime, there is no tax on income of 0-3 lakhs per annum. After this, 5 percent tax has to be paid on 3 to 6 lakhs, 10 percent on 6 to 9 lakhs, 15 percent on 9 to 12 lakhs, 20 percent on 12 to 15 lakhs and 30 percent tax has to be paid on income of more than 15 lakhs.

What is the old tax regime?

In the old tax regime, no tax has to be paid on annual income up to Rs 2.5 lakh. According to this, taxpayers will have to pay tax at the rate of 5% on annual income of Rs 2.5 lakh to 5 lakh. If the annual income is 5 lakh to 10 lakh, then tax will have to be paid at the rate of 20 percent. But 30 percent tax will be levied on income above Rs 10 lakh. But under this, you get many different types of tax benefits.

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In such a situation, senior citizens are hoping for the re-implementation of the pre-Covid facility. Before the Covid-19 pandemic, Indian Railways used to give 40% to 50% discount on train tickets to senior citizens. This facility was applicable on trains like Mail, Express, Rajdhani, Shatabdi and Duronto. Men aged 60 years or above used to get 40% discount and women aged 58 years or above used to get 50% discount. But this discount was discontinued during the pandemic and was not restored even after the situation in the country became normal.

Demand to restore exemption increased

Senior citizens say that after retirement their sources of income become limited. The discount on train tickets made travel affordable for them, so that they could easily meet their family or go on religious trips. Since the discontinuation of this discount in 2020, senior citizens have been constantly demanding its restoration. They say that this discount was not just financial help, but also gave them an opportunity to travel to different parts of the country.

Will there be relief in Budget 2025?

On February 1, 2025, Union Finance Minister Nirmala Sitharaman will present the first budget of the third term of the Modi government. Senior citizens hope that their long pending demand will be fulfilled this time. If the railway discount is resumed, then lakhs of senior citizens will get direct benefit from it. They will be able to avail the discount on ticket booking in Rajdhani, Shatabdi and other trains again.

Will the government give good news to senior citizens?

Now it remains to be seen whether the government includes this demand of senior citizens in Budget 2025 or not. This step will not only provide relief to senior citizens but will also show the government’s sensitivity towards the elderly.

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Amid preparations for the upcoming Union Budget 2025 by Finance Minister Nirmala Sitharaman, many important reforms are expected for taxpayers. There may be many big announcements regarding income tax in the 2025 general budget, especially for salary based and senior citizens, including changes in the slabs of income tax returns. Let us know what is going to be available in this budget.

Changes in income tax slabs

To make the new tax regime more attractive, the Finance Minister may revise the income tax slab rates. Experts suggest that a tax rate of 30% be imposed on income above Rs 20 lakh, so that it is in line with inflation and the current economic situation. This step may be an attempt to encourage the new tax regime.

Special discount for senior citizens

The new tax regime applies equally to all taxpayers. Experts have recommended that separate tax slabs be created for senior citizens aged 60 years and above. This could include higher exemption limits or lower tax rates, which could improve their financial situation.

Latest News:-

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Under the Income Tax Act 1961, it has remained at Rs 1.5 lakh for the last decade. While inflation and income are constantly increasing, the limit of 80C has not been increased for a long time.

What is Section 80C?

Section 80C of the Income Tax Act is used by most taxpayers. It allows individual taxpayers and Hindu Undivided Families (HUFs) to claim tax exemption on investments and expenses. Exemption under 80C is available to taxpayers who file returns under the old tax regime. In the current system, a maximum exemption of Rs 1.5 lakh can be availed in a financial year.

Investments – Options under 80C

• Equity Linked Savings Schemes (ELSS)
• Public Provident Fund (PPF)
• National Savings Certificate (NSC)
• Employee Provident Fund (EPF)
• Unit Linked Insurance Plans (ULIP)
• Sukanya Samriddhi Scheme
• Senior Citizen Savings Scheme (SCSS)
• Five Year Tax Saving Fixed Deposit
• Tuition fees for up to two children
• Home Loan Principal
• Life insurance premium
• Contribution to National Pension System (NPS)

How to claim discount?

To claim deductions under section 80C, taxpayers must make investments or expenditures within the financial year (April 1 to March 31). These amounts have to be reported in the relevant section while filing income tax returns (ITR). Attaching certificates of investment and payment eases claim processing.

What are the expectations from Budget 2025?

The limit of Section 80C has been stagnant at Rs 1.5 lakh since 2014. Taxpayers and financial experts say it should be increased in line with the current economic situation. Rajiv Gupta, President, PB Fintech, said that since Section 80C covers investments like PPF and home loans, the exemption limit gets exhausted quickly. If term insurance is put in a separate tax exemption category, it will encourage life insurance and provide better protection to Indian families.

What does this limit mean for taxpayers?

If this limit is increased in Budget 2025, it will not only provide relief to taxpayers but will also encourage more investments in financial savings schemes.

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This creates confusion among investors regarding tax. AMFI, an organization representing the mutual fund industry, has advised the government to eliminate the difference in tax rules. This will bring transparency in investing in mutual funds and will increase investors’ interest in investing.

There is a need to simplify the tax structure

Consultancy firm Deloitte has also advised to remove the shortcomings related to tax. It believes that there is a need to simplify the rules of GST. Currently, many medium and small businesses have to face problems in the case of GST. Deloitte says that if the government simplifies the GST framework, then compliance will increase. Increase in compliance means that the government’s revenue will increase.

The tax burden on SMEs needs to be reduced

Deloitte also says that currently the tax burden on SMEs is high. High taxes reduce the growth potential of SMEs. The government should make such tax rules for SMEs that taxes are low and they get full opportunity to expand their business. If the government provides a favorable environment to SMEs, then their investment in renewable energy and technology will increase. This will increase their productivity.

AMFI advised to simplify the tax rules for mutual funds

AMFI also says that there is a need to make major changes in India’s tax structure. Tax rules will have to be made according to international rules. This will boost economic growth. Experts say that to attract foreign investors, it is necessary to make the tax structure simple and transparent. This will also reduce cases of tax evasion. This will also increase the government’s income. Experts are of the opinion that foreign investors invest only when they see stability in tax rules.

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Union Budget 2025 is due within a month. The government may also introduce incentives to taxpayers in this budget to promote the new tax regime. After the policy announced in the July budget, the NDA 3.0 government is expected to take further steps to promote the new tax framework in the upcoming full budget. Discussions between the Prime Minister’s Office and leading economists have emphasized the need to promote fiscal measures to boost spending. In these discussions, several steps have been considered, from reducing income tax liability to increasing financial support for daily expenditure.

72% taxpayers adopted the new tax regime in AY 2024-25

Expectations of improvements in the new tax regime have increased, especially considering that the government is trying to make it more taxpayer-friendly. According to Finance Ministry data, about 72 per cent of the 7.28 crore taxpayers in the assessment year 2024-25 adopted the new tax regime while filing ITR. These figures are before the deadline of 31 July 2024. In contrast, only 28 per cent of taxpayers opted for the old tax regime.

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In a meeting with Finance Minister Nirmala Sitharaman before the budget, financial institutions, especially banks, have suggested tax incentives on FDs to promote savings. In recent times, banks have faced problems in getting funds to disburse loans amid a decrease in savings. To avoid this in the future and to make people invest in bank FDs again considering them a profitable deal, it is necessary to give them some incentives.

Convenience sought on bonds and shares too

Radhika Gupta, Managing Director and Chief Executive Officer (CEO) of Edelweiss Mutual Fund, also gave suggestions regarding improving the efficiency of the capital market and increasing capital market inclusion during the pre-budget meeting with the Finance Minister. She said that recommendations have been made to encourage long-term savings i.e. both bonds and equity shares. Finance Secretary and DIPAM (Department of Investment and Public Asset Management) Secretary, Department of Economic Affairs and Financial Services Secretary and Chief Economic Advisor also attended this meeting.

Long term capital gain tax will be levied on FDs.

Sources say that bank representatives have suggested linking FDs with long term capital gain tax (LTCG) instead of taxing them according to the income tax slab, so that deposits can be encouraged. Currently, income tax is levied on returns received from fixed deposits. Due to this, people invest their savings in low tax options like mutual funds instead of investing in fixed deposits.

How to get the benefit

Suppose you have made an FD of Rs 10 lakh and you are getting 8% annual interest. You got a total interest of Rs 4 lakh on this FD made for 5 years. Suppose you fall in the 30% income tax slab, then there is no tax on the interest of FD up to Rs 40,000, above that you will have to pay tax as per the slab. This means that you will have to pay 30% tax on Rs 3.60 lakh. In this way, you will have to pay Rs 1 lakh 8 thousand only as tax. If LTCG is applicable on this, then you will have to pay a lump sum tax of 12.5% ​​and the total tax will be only Rs 45,000. In this way, you will save about Rs 63,000.

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Former Infosys CFO Mohandas Pai has also appealed to Prime Minister Narendra Modi and the Finance Minister to provide relief to the middle class. He has demanded changes in the tax slab and reduction of the increasing burden on taxpayers.

Demand for change in tax slab

Mohandas Pai says that the current tax slab is becoming a burden on the middle class. He has suggested that it needs to be reduced and adjusted. He has given some advice regarding this.

There should be no tax on income up to Rs 5 lakh.

• 10% tax on income up to Rs 5-10 lakh.
• 20% tax on income up to Rs 10-20 lakh.
• 30% tax on income above Rs 20 lakh.
• Surcharge on income above Rs 50 lakh.

Apart from this, it has been said to give exemption on income up to Rs 7.5 lakh to citizens above 60 years of age and Rs 10 lakh to citizens above 70 years of age.

Tax burden on the middle class

Mohandas Pai says that the middle class has the highest tax burden. Personal tax collection has increased by 114% in the last three years, but no relief has been given to the income and savings of the middle class. After inflation, rising school-college fees and essential expenses, the middle class does not have money left for other expenses.

Demand for relief on housing loan

He said that the deduction on housing loan benefits only those people who take the loan. This service is available to only 1.2 crore out of 3.5 crore taxpayers. He suggested that such schemes should be brought in the budget so that the middle class has more money to spend.

Tax disputes should be resolved

Mohandas Pai also demanded an end to tax disputes. He said that the disputed tax amount was Rs 4.5 lakh crore in 2014, which has increased to Rs 12.5 lakh crore by 2025. This is the failure of the Income Tax Department and the government. He appealed to declare 2025-26 as the tax dispute resolution year.

The middle class should not be ignored

He said that the government spends more than Rs 9 lakh crore on subsidies for the poor section, but the problems of the middle class are not paid attention to. He stressed the need to provide relief to the middle class and remove their resentment. The middle class has a lot of expectations from Budget 2025. Now it remains to be seen what steps the government takes for the middle class in this budget and how much it solves their problems.

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However, the government has not taken any decision in this regard yet. The government can announce this in the budget to be presented on February 1.

The government can also give income tax exemption to the middle class. However, no decision has been taken in this regard yet. It is believed that the government can make an announcement in this regard in the general budget to be presented on February 1. This information has been given by Economic Times quoting Reuters. It has been told that the government can also give income tax exemption to those earning Rs 15 lakh annually.

The government wants to give tax relief to the middle class. The government plans to promote consumption due to the recession. Due to these reasons, the government is considering giving income tax exemption to the middle class earning up to Rs 15 lakh. If this happens, then millions of taxpayers will benefit from this.

How much will the deduction be?

No information has been revealed yet about how much income tax exemption will be given to those earning up to Rs 15 lakh annually. According to sources, no decision has been taken yet on the size of any deduction. Whatever decision will be taken in this regard will be announced in the general budget to be presented on February 1.

Now we have to pay a lot of tax

Currently, there are two systems to choose from for income tax. The first is the old one and the second is the new one. The new system started in the year 2020. There is no exemption on facilities like HRA in this. In the new system, 5 to 20 percent tax is levied on income from Rs 3 lakh to Rs 15 lakh annually. Income tax has to be paid at the rate of 30 percent on income more than this.

A good move for the economy too!

If the government cuts income tax for the middle class, then such people will get more money in their hands. This money can help in accelerating the country’s economy. In fact, the country’s GDP in the September quarter has been much lower than in the last 7 quarters. If people get more money in their hands, they will be able to spend more. This will improve the country’s economy.

Why favouritism towards the middle class?

The government is currently facing a lot of criticism from the middle class. The middle class is the worst hit by inflation. The middle class is not getting any special relief from the government. The increase in salary is decreasing as compared to inflation.

Due to inflation, the demand for everything from soap and shampoo to cars and two-wheelers has been low. The middle class is the biggest customer of these things. In such a situation, the government wants to please the middle class by giving income tax exemption.

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However, these are just budget expectations that crores of taxpayers of the country are expecting. This step can prove to be a big good news for crores of taxpayers. Currently, taxpayers who choose the old tax regime take advantage of saving tax under this limit, whereas this facility is not available under the new tax regime.

When was the last time the 80C limit was increased?

The Section 80C limit was last increased in 2014, when then Finance Minister Arun Jaitley raised it from Rs 1 lakh to Rs 1.5 lakh. This change was a major part of the government’s first budget. However, it has remained unchanged for the last decade. Taxpayers have been hoping for a long time that the 80C limit will be increased to provide relief according to their rising costs and income.

What is the benefit of Section 80C?

Under Section 80C, taxpayers get the benefit of tax deduction up to Rs 1.5 lakh. Under this, taxpayers can save tax on investments and expenses like various saving schemes like PPF, ELSS, life insurance, NSC and children’s tuition fees. This deduction is available only for individuals and Hindu Undivided Families (HUF).

Why should the 80C limit be increased?

Changing the limit of Section 80C reduces the taxable income of taxpayers, thereby benefiting them directly. Despite rising costs and increasing salaries over the years, there has been no change in the limit of 80C. This makes many taxpayers feel the need to save their taxes by utilising the entire limit.

What are the expectations from Budget 2025?

The Finance Minister will present the Union Budget on 1 February 2025. Taxpayers are hoping that the 80C limit will be increased to Rs 3 lakh, which will give them more exemption in their investments and savings. If this happens, this move will prove to be a big relief for taxpayers from the government.

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She will become the first Finance Minister to present the Budget for the 8th consecutive time. This will set a record for presenting the Budget the most times. Every section of the society including the common man, industry, farmers have high expectations from the next Budget. The reason for this is that the GDP growth rate has declined in the second quarter of this year. On the other hand, the common man is worried about inflation. Farmers are expecting an increase in money under the Pradhan Mantri Kisan Samman Nidhi. This process starts many months ago.

The work of preparing the Union Budget starts several months in advance every year. The Finance Ministry takes the opinion of NITI Aayog and various ministries in this regard. Their expenditure plan in the new financial year is discussed with them. After obtaining the expenditure estimates of various ministries, they are analyzed. Then on this basis, the total budget deficit is calculated. Budget deficit means the difference between the government’s revenue and expenditure.

Expenditure plans of various ministries

The government allocates funds to various ministries and departments by estimating its revenue and expenditure. Before this, an effort is also made to gather the opinion of the common man with representatives and experts from different sectors of the economy. Economists and trade unions also give their opinion on the budget to the Finance Minister. Usually, the Finance Minister holds pre-budget meetings for this. The views received in this act have been given important information for making the budget. After analyzing all the suggestions, feedback and demands, the Finance Minister finalizes the budget proposals. Then the approval of the Cabinet is sought on it.

Halwa Ceremony

is organized in the Ministry of Finance after the budget proposals are approved. This traditional ceremony is organized every year. This starts the printing of budget documents. Earlier, a large number of budget documents were printed. Now the circulation of budget documents is in electronic form. Therefore, not many copies of budget documents are printed.

Information about budget proposals to Parliament

The Finance Minister presents the budget in the Lok Sabha on a specific date. During this, she tells the members of the Lok Sabha about the government’s fiscal roadmap, fiscal policies, economic reforms, proposals for changes in taxes. She also explains that the policies of the government affect the life of the common man in some way or the other. She will also give information about the steps being taken by the government to help the economically weaker section of the society.

This time’s budget will be special.

This time Finance Minister Nirmala Sitharaman will present the budget on February 1. This will be the full budget for the financial year 2025-26. A close watch is being kept on this budget. The common man is expected to get relief in income tax. The Finance Minister may announce the new Direct Tax Code.

On the other hand, the industry hopes that the government will announce measures to increase economic growth in the budget. The focus of Prime Minister Narendra Modi’s central government is on increasing the income of farmers. Therefore, there may be some big announcement for farmers in this budget. The government may increase the money of the Prime Minister Kisan Samman Nidhi.

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Finance Minister Nirmala Sitharaman has started discussions with stakeholders regarding this. It is expected that senior citizens and low-income taxpayers may get good news in the next budget.

Taxpayers with low income can get big relief

Let us tell you that in the first budget of the third term of the Modi government, which was presented in July this year, some relief was given to the taxpayers. It is believed that in the next budget to be presented on February 1, 2025, low-income taxpayers may get a big relief.

Under the new tax regime, taxpayers falling in the tax slab of Rs 3 lakh to Rs 7 lakh can get the benefit of tax reduction. According to a report by ET Now, the government can increase the exemption limit to more than Rs 3 lakh under the new tax regime.

No significant change is expected for those in higher tax slabs

The common man’s main focus in the budget is that his income should come under the tax exemption limit or he should have to pay less tax on his income. That means the next budget can bring a big relief for the lower income group. However, no special change is expected for those in the higher tax slab.

Let us tell you that in the budget presented in July, Finance Minister Nirmala Sitharaman had given relief to the taxpayers under the new tax regime for the financial year 2024-25. She had made the annual income of Rs 7 lakh tax free by changing the tax slab. This means that if your annual income is up to Rs 7 lakh, then you will not have to pay any tax on it. In the budget presented in July, the Standard Deduction Limit was also increased from Rs 50,000 to Rs 75,000.

Know what CII suggested

Industry body CII (Confederation of Indian Industry) says that the government should stick to the fiscal deficit targets of 4.9% of GDP for the year 2024-25 and 4.5% for 2025-26. Let us tell you that CII works to promote India’s industry growth. He says that more aggressive targets can have a bad effect on India’s economic growth. CII Director General Chandrajit Banerjee said that India is moving ahead rapidly amid a slow global economy. Fiscal management is very important to continue moving forward in this way and for macroeconomic stability.

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The government had given this relief in the form of standard deduction in the New Tax Regime. However, the salaried class has been demanding relief in the Old Tax Regime for a long time. The process of preparations has started from the Finance Ministry for the budget for the financial year 2025. Recently, the Finance Minister had a meeting with the officials regarding the preparations.

What will be special for the middle class in the budget?

The budget for the financial year 2025 will be presented this time on February 1, 2025. This will be the eighth budget presented by Finance Minister Nirmala Sitharaman. What will be special for the middle class in this budget? There is a discussion going on in the Finance Ministry regarding this. In the news published in Dainik Jagran regarding this, citing sources, it has been claimed that in the budget to be presented in February next year, the government can again give relief in income tax to the middle class. Let us tell you that in the middle class, the number of salaried class who pay income tax is the highest.

There is a consideration to increase the limit of standard deduction.

The news published in the newspaper claimed that this time, to give relief to the salaried class, the Finance Ministry is considering increasing the limit of standard deduction under the New Tax Regime of Income Tax. In the current financial year, under the New Tax Regime, the salaried class gets the benefit of standard deduction of Rs 75,000. Apart from this, those earning up to Rs 7 lakh annually do not have to pay any tax under the New Tax Regime.

There will be no relief in the old regime!

Sources claim that in the budget to be presented on 1 February 2025, the amount of standard deduction for the salaried class can be increased from Rs 75000 to one lakh. Sources also claimed that the government will give any kind of relief in income tax only under the new tax regime. Actually, it is being promoted by the government and the old tax regime is being discouraged. This has been indicated by the Finance Ministry on many occasions before.

Out of the eight crore income tax returns filed in the financial year 2023-24, the number of ITRs filed by those earning 5 to 10 lakh annually was 2.79 crore. Apart from this, those earning Rs 10-20 lakh filed 89 lakh ITRs. This simply means that if the government decides to give relief in income tax, then relief will be given keeping in mind about three crore taxpayers.

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Apart from this, the minimum basic pension given to pensioners will also increase. Also, the entire salary and pension structure will also change. There is a relief news for central employees and pensioners that they have been given a 3% increase in Dearness Allowance (DA) for the period July-December. After this DA has increased to 53%. This increase is effective from July 1, 2024, which means that employees and pensioners will also get three months’ arrears along with the October salary. This is being seen as a big relief before Diwali. However, now there is hope

Will the 8th Pay Commission be announced in Budget 2025?

Now the question arises whether the central government will announce the establishment of the 8th Pay Commission? Crores of government employees and pensioners want to know the answer to this question. In the last few decades, the government has been implementing a new pay commission every 10 years. Therefore, this time too the expectations have increased.

It is expected that the government may announce the 8th Pay Commission in the upcoming Budget 2025. A union leader said that if the government announces it during the budget, it may take some time to implement it. Last time the 7th Pay Commission took more than 18 months to prepare the report and it was implemented from January 2016.

How did salary and pension change with the 7th Pay Commission?

Employees and pensioners are eager to know what changes the 8th Pay Commission will bring in their salary and pension. During the last 6th to 7th Pay Commission, the employee unions had demanded a fitment factor of 3.68, but the government fixed it at 2.57. This fitment factor is an important criterion for calculating salary and pension.

The minimum basic pay was increased from ₹7,000 to ₹18,000 with a fitment factor of 2.57. Similarly, the minimum pension increased from ₹3,500 to ₹9,000. The maximum salary was fixed at ₹2,50,000 and the maximum pension at ₹1,25,000.

Minimum basic salary will increase by this much from 8th pay commission

According to reports, discussions are going on about the fitment factor this time too. Last time a factor of 3.68 was demanded, but the government implemented it at 2.57. Now there is a possibility that the fitment factor in the 8th Pay Commission may be 1.92. If the factor of 1.92 is decided, then the current minimum salary may increase from ₹ 18,000 to around ₹ 34,560. Similarly, the minimum pension may also increase to around ₹ 17,280.

Expectations from Budget 2025

Overall, there are a lot of expectations among employees and pensioners regarding the announcement of the 8th Pay Commission. If its establishment is announced during Budget 2025, it will be a big relief for the financial future of government employees.

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Apart from this, the minimum basic pension given to pensioners will also increase. Also, the entire salary and pension structure will also change. There is a relief news for central employees and pensioners that they have been given a 3% increase in Dearness Allowance (DA) for the period July-December. After this DA has increased to 53%. This increase is effective from July 1, 2024, which means that employees and pensioners will also get three months’ arrears along with the October salary. This is being seen as a big relief before Diwali. However, now there is hope

Will the 8th Pay Commission be announced in Budget 2025?

Now the question arises whether the central government will announce the establishment of the 8th Pay Commission? Crores of government employees and pensioners want to know the answer to this question. In the last few decades, the government has been implementing a new pay commission every 10 years. Therefore, this time too the expectations have increased.

It is expected that the government may announce the 8th Pay Commission in the upcoming Budget 2025. A union leader said that if the government announces it during the budget, it may take some time to implement it. Last time the 7th Pay Commission took more than 18 months to prepare the report and it was implemented from January 2016.

How did salary and pension change with the 7th Pay Commission?

Employees and pensioners are eager to know what changes the 8th Pay Commission will bring in their salary and pension. During the last 6th to 7th Pay Commission, the employee unions had demanded a fitment factor of 3.68, but the government fixed it at 2.57. This fitment factor is an important criterion for calculating salary and pension.

The minimum basic pay was increased from ₹7,000 to ₹18,000 with a fitment factor of 2.57. Similarly, the minimum pension increased from ₹3,500 to ₹9,000. The maximum salary was fixed at ₹2,50,000 and the maximum pension at ₹1,25,000.

Minimum basic salary will increase by this much from 8th pay commission

According to reports, discussions are going on about the fitment factor this time too. Last time a factor of 3.68 was demanded, but the government implemented it at 2.57. Now there is a possibility that the fitment factor in the 8th Pay Commission may be 1.92. If the factor of 1.92 is decided, then the current minimum salary may increase from ₹ 18,000 to around ₹ 34,560. Similarly, the minimum pension may also increase to around ₹ 17,280.

Expectations from Budget 2025

Overall, there are a lot of expectations among employees and pensioners regarding the announcement of the 8th Pay Commission. If its establishment is announced during Budget 2025, it will be a big relief for the financial future of government employees.

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