Jan 18, 2025
Budget 2025: New 25% Tax Slab for Incomes Between ₹25-30 Lakh
Ahead of Budget 2025, FM Sitharaman must balance taxpayer expectations with 6.5 crore in the new tax regime and 2.5 crore in the old
Taxpayers face challenges navigating the complexities of two distinct tax systems
CA (Dr.) Suresh Surana highlights the complexities of the current tax system and suggests steps to simplify and unify individual taxation
Challenges in the existing dual tax regime: The dual tax regime adds complexity, making it hard for many, especially salaried individuals, to choose the best option without professional help
Taxpayers with business income can only revert to the new tax regime once, limiting flexibility
The new tax regime, despite being the default since 2023, has limited adoption due to restrictions on deductions, making the old regime more attractive
Tax experts propose a unified tax system that combines the benefits of both regimes to simplify compliance and retain taxpayer advantages
Surana proposes a 25% tax rate for incomes between Rs 25 lakh and Rs 30 lakh to ease the burden on higher earners
Akshat Khetan sees raising the tax exemption slab to Rs 25 lakh in Budget 2025 as aligning with the growing middle class’s aspirations
Surana proposes increasing the family pension deduction to Rs 25,000, retaining deductions for Agniveer Fund contributions and NPS, and enhancing the standard deduction to Rs 75,000
Surana proposes deductions for investments, insurance, electric vehicles, and housing loans, while taxpayers seek simpler taxation in Budget 2025 and a unified system
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