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Budget 2025: Income Tax Relief on Cards! ICRA Report Suggests THESE Big Benefits for Taxpayers, Check

Budget 2025 may bring significant income tax relief, with ICRA hinting at higher tax exemptions and deductions. Middle-class taxpayers await key reforms eagerly.

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Budget 2025

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As the Union Budget 2025 approaches, discussions about potential changes in income tax policies are gaining momentum. Finance Minister Nirmala Sitharaman is expected to unveil the budget on February 1, 2025, and hopes are high among taxpayers. According to a recent report by ICRA (Investment Information and Credit Rating Agency), the upcoming budget might introduce significant ease and relaxation in personal income tax rules.

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Income Tax Relief Expectations in Budget 2025

ICRA's report has sparked interest by suggesting that Budget 2025 may include relief for individual taxpayers. The report highlights that this potential tax relaxation is unlikely to disrupt overall tax revenue stability. It states, "Providing tax relief to individuals will not significantly affect the consistent cash flow from tax collections."

This is welcome news for taxpayers who have been seeking additional support. While the previous budget, presented in July 2024, increased the standard deduction from ₹50,000 to ₹75,000, there was no substantial change in other tax benefits.

Increased Standard Deduction on the Cards in Budget 2025?

One of the most anticipated moves in Budget 2025 is a further hike in the standard deduction. Many experts and taxpayers are advocating for the deduction to be raised from the current ₹75,000 to ₹1,00,000. If implemented, this change could provide much-needed financial relief to middle-income earners and boost disposable income.

Higher Tax Exemption Limits Expected

The demand for an increase in the income tax exemption limit has also been growing louder. Currently, the exemption limit is ₹3,00,000, but experts suggest raising it to ₹5,00,000. Such a move would significantly reduce the tax burden on the middle class and align with the government’s goal of improving financial ease for taxpayers.

The Union Budget 2025 holds expectations for personal income tax reforms. With reports like ICRA’s shedding light on potential measures, middle-class taxpayers may finally see their financial concerns addressed. All eyes are now on February 1, as the nation eagerly awaits concrete steps toward financial ease and relief in income tax policies.

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