Budget 2025: 5 potential middle-class tax-relief expectation from Finance Minister Nirmala Sitharaman

Just a few days left! Then Finance Minister Nirmala Sitharaman will present Budget 2025. Speculation has already begun about what benefits this budget might hold for the middle class 

Budget 2025

Finance Minister Nirmala Sitharaman will present the 2025 budget in a few days. Speculation has begun about potential middle-class relief

Recommendations

Economists and experts have recommended tax cuts for Budget 2025. Economists and industry representatives suggest tax cuts would increase disposable income

Demand in Recommendations

Recommendations suggest increased spending due to tax cuts could boost GDP. Tax experts believe these five recommendations could benefit taxpayers and boost GDP.

The government may reduce taxes for income ceilings up to ₹15-20 lakhs annually. Currently, the old regime has a 30% tax on income above ₹10 lakhs, while the new regime has it above ₹15 lakhs

Reason for Tax Cut Request

Experts cite rising inflation making it difficult for families earning ₹15-20 lakhs in major cities. Tax cuts could increase their spending power

Benefits for Senior Citizens

Increasing the basic exemption limit for senior citizens could benefit them. Experts suggest raising it to ₹10 lakhs

Home Loan Deduction

Currently, deductions on home loan interest and principal are available only under the old tax regime. Experts suggest increasing the ₹2 lakh annual deduction under Section 24B

Health Insurance Premium Deduction

Under Section 80D, deductions are available on health insurance premiums. Experts suggest increasing the deduction to potentially encourage more insurance enrollment