Expectations of Budget 2025: Union Finance Minister Nirmala Sitharaman may announce several reforms in the Union Budget 2025 to be introduced in February. In which the chances of eliminating the benefits available in the old tax system can give a big blow to the taxpayers. A research report by SBI suggests that the central government may withdraw the benefits of the old tax system to accelerate the new tax system.
In this report, the limit of National Pension Scheme is Rs. Health insurance cuts from 50000 to one lakh rupees under Section 80 (D). Increased to Rs 25000 50000 is recommended. Also, the income tax rate has been replaced by Rs 100. It has been advisable to reduce the tax rate on the income limit of 10-15 lakh to 15 percent. Apart from this, all bank deposits have been asked to impose an equal 15 percent tax.
Exercise to connect people with new tax system
Dr. Soumya Kanti Ghosh, Chief Economist of SBI Group, said in the report, “We estimate that the Government of India can ensure tax compliance in income increase by including all taxpayers under the new tax system. You can also promote consumption. Applying such measures can reduce the tax revenue of the government.
These facilities will be included in the new tax system
- The SBI Research report has demanded that all concessions be included to accelerate the new tax system. In which EPS Seema Rs. Increased to Rs 50000 1 lakh rupees, medical insurance exemption. Increased to Rs 25000 Appeal of 50000.
- Appeal to reduce the income tax rate from 20 percent to 15 percent for people with income of 10 to 15 lakhs.
- Demand for 15 percent tax on all types of bank deposits, as well as a proposal to show this income as the second source of income.
- The tax exemption limit increased to Rs 500 on the amount deposited in the savings account. Demand for 20000.
- Improvement in new tax system Rs. Loss of 50 thousand crores
According to this report, improvement in the new tax system will increase the tax revenue of the government by Rs 1,000 crore. There is a possibility of loss of 50000 crores. Which is 0.14 percent of GDP. However, these improvements are necessary to reduce the popularity of the old tax system.
What improvement in the old tax system is possible?
The government has not yet made any official announcement to remove the old tax system. But this issue can be discussed in future. A new tax system was introduced in the Union Budget of 2020. Despite the exemption available in the new tax system and low tax rates, most taxpayers follow the old tax system. Because, it provides several cuts and reliefs under sections 80 (C) and 80 (D).
