The salaried class is expecting a lot from Finance minister Nirmala Sitharaman as the Union Budget 2025–2026 is presented in a few days. On february 1, Sitharaman is scheduled to deliver the Budget 2025. Among the main demands of paid workers for the next budget are the creation of a new tax bracket and an increase in personal liquidity.
 
Expectations for the budget in 2025 Payroll tax for salaried workers
"It becomes imperative to rationalize tax slabs in the absence of major deductions and other incentives as the economy gradually shifts towards the new tax regime in a discretionary manner," stated vimal Nadar, Senior Director, Research, Colliers India.
 
Budget 2025 expectations Income tax for salaried employees: Additional tax slab

The proposal to introduce an additional tax slab of 25% for income levels between INR 15 lakhs to 20 lakhs will surely provide significant tax relief and increase disposable income.

Budget 2025 expectations Income tax for salaried employees: Exemption up to Rs 10 lakh

Individuals with more liquidity will have a greater chance of stimulating spending. Furthermore, the plan to exclude income tax up to INR 10 lakhs will undoubtedly increase middle-class salaried people's liquidity.
 
"There might not be any significant structural changes to the direct tax system in the next budget since the new Direct Tax Code, which will replace the current Income-tax Act, 1961, is still being developed. Nonetheless, it is anticipated that raising the tax slabs will assist individual taxpayers in some way by giving them more money to fight inflation.
 
In order to help create jobs, the government would be wise to extend the low tax regime to businesses that establish new manufacturing facilities in india for the fiscal year 2025–2026.
 
The government may also think about exempting listed share investments from long-term capital gains tax and dividends, treating them as individual shareholders on par with mutual fund investors. According to Kumarmanglam Vijay, Partner at JSA Advocates & Solicitors, a distinct long-term investing account might be established for the same purpose.
 
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Budget 2025

SIBY JEYYA

26/01/2025 10:32 AM