What's in store for middle class? 5 key taxpayer benefits expected in Union Budget 2025

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Budget 2025

Nirmala Sitharaman will present the 2025 budget in a few days. Speculation has begun about what might be in store for the middle class.

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Recommendations

Economists and experts have already recommended tax cuts for Budget 2025. Economists and industry representatives have suggested that tax cuts would leave more money in people's hands for spending.

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GDP Growth

Recommendations to the central government suggest that increased spending by people would boost the country's GDP.

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Tax Experts' Opinion

Tax experts believe that if Finance Minister Nirmala Sitharaman implements these five recommendations, it would benefit taxpayers and boost GDP.

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Income Tax Rate Reduction

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

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Reason for Tax Cut Request

Experts point to rising inflation, making it difficult for families earning ₹15-20 lakhs in cities like Delhi, Mumbai, and Bangalore. Tax cuts could boost spending.

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Benefits for Senior Citizens

Increasing the exemption limit for senior citizens would benefit this taxpayer group. Experts suggest raising it to ₹10 lakhs.

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Home Loan Deductions

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

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Health Insurance Premium Deduction

Deductions are available under Section 80D. Increasing the limits could encourage more insurance enrollment.