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

Just a few days left! Finance Minister Nirmala Sitharaman will present Budget 2025. Speculation is rife about potential benefits for the middle class.

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.

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.

GDP Growth

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

Tax Experts' Opinion

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

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.

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.

Benefits for Senior Citizens

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

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.

Health Insurance Premium Deduction

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