Taxpayers are happy! These 3 limits related to income tax including standard deduction may increase the budget
Income taxpayers have high expectations from the government in this budget. Although the central government is not in the mood to make major changes in the new tax system, it can make many changes including increasing the tax limit.
Union Finance Minister Nirmala Sitharaman will present the Union Budget for the financial year 2025-26 on the coming Saturday. At the same time, she will present the budget for the country in the Lok Sabha for the eighth time. Income taxpayers have high expectations from the government in this budget. Although the central government is not in the mood to make major changes in the new tax system, it can make many changes including increasing the tax limit. Let us know about those three important changes, on which there is a lot of hope of taking important decisions from the government.
The expectation of an increase in the standard deduction
The standard deduction is a fixed amount that can be deducted from the taxable income. In such a situation, if a big deduction reduces the taxable income, then the taxpayer has to pay less tax. In simple language, if you earn Rs 10 lakh annually. After a standard deduction of Rs 75,000 on this, your taxable income becomes Rs 9,25,000. If the government makes this standard deduction of Rs 75,000, then your taxable income will be Rs 9,000,000.
Income tax exemption
Apart from this, experts believe that Finance Minister Nirmala Sitharaman can also make some changes in the new tax regime. Currently, annual income up to Rs 7 lakh is tax-free under the new tax regime. The government can consider increasing it from Rs 7 lakh to Rs 10 lakh. Apart from this, a new tax slab of 25 percent can be implemented on annual income of Rs 15 lakh to Rs 20 lakh.
80C limit may increase
Let us tell you that at present, taxpayers can claim a deduction of Rs 1,50,000 on the premium paid for life insurance and this is also the overall limit of exemption under 80C. Under this section, exemption is also available on many government schemes including the National Savings Scheme, and Public Provident Fund. In such a situation, in this budget, it is expected that the government it can consider increasing this limit from Rs 1.5 lakh to Rs 2.5 lakh.
Disclaimer: This content has been sourced and edited from economictimes. While we have made modifications for clarity and presentation.
