Budget 2025: Goodbye to the old income tax system in this budget?
Budget 2025: There is only three days left for Budget 2025. As the deadline for presenting the Union Budget 2025 in Parliament is coming, speculation about important decisions for the government is increasing in that budget. Finance Minister Nirmala Sitarman is expected to completely eliminate the previous income tax system. Many experts estimate that the government has upgraded the number of taxpayers that select the new tax policy, the simplified and transparent policy will remove the old tax system.
Government incentive for new tax policy
It is not surprising that the Finance Minister has decided to completely abolish the old tax system in Budget 2025 (Union Budget 2025), if the government’s bias on the new tax system, the number of people choosing it, and various Do not update the old policy since the introduction of the new policy said that one tax and investor expert Balwant Jain said. “The government expects taxpayers to report their real income. This is in line with the new tax policy. Therefore, such action can be taken soon, ”he said. Gaurav Kansal, director of KBP Group, said that the budget can make significant changes in the Indian tax system in 2025.
Two tax procedures
Currently, India works with two separate tax policies. One is the chronic tax system that allows different exceptions, while the other provides low base rate and removes exceptions that are a new tax system. The government expects to set up a new tax system with new base rates. However, as part of it, will the government completely abolish the old tax system? There is no clarity yet. There is no official announcement or indication from the government. The matter is likely to be clear at the time of budget 2025 on 1 February.
Old tax policy vs new tax policy: Major differences
- The new tax system will get tax revenue of up to Rs 7 lakh and up to Rs 5 lakh in the old system.
- According to the new rule, the standard deduction for wage creatures is Rs 75,000, while the old tax system is Rs 50,000.
- Under various classes including 80C, 80D and HRA, there is no limited exemption for the old tax system.
- The budget session of Parliament will start from 31 January and end on 4 April. The budget will be presented on 1 February.
Reference: The above opinions and recommendations are individual analysts. HT Telugu V We recommend investors to contact certified professionals before taking any investment decisions.
