Tax Exemption – The Narendra Modi government may give relief to individual taxpayers in the budget for the financial year 2025-26. According to a Reuters report, Modi 3.0 is considering cutting income tax rates for people earning Rs 10 lakh 50 thousand annually in his second budget.
Due to the general elections, two budgets were presented for the financial year 2024-25, interim and full. In the July 2024 budget, Finance Minister Nirmala Sitharaman expanded the income tax exemption slab and increased the standard deduction for all taxpayers.
Ahead of the 2025-26 budget, experts are speculating that the government may continue the old tax system, make the capital gains tax regime easier as well as make many more changes on the tax payment front. If the government implements it, then lakhs of taxpayers will get direct benefit. Especially urban taxpayers who have very high expenses.
Currently, a 10% tax is levied on ₹ 7 to 10 lakh rupees
In Budget 2024, the government had given relief regarding income tax. Under the new tax regime, tax has to be paid at the rate of 5% on income of Rs 3 lakh to 7 lakh. Earlier it was up to 6 lakhs. Changes were also made in other slabs of the new tax regime.
Apart from this, the standard deduction was also increased from 50 thousand to 75 thousand rupees. With both these changes, taxpayers are getting a benefit of up to Rs 17,500. However, there was no change in the old tax regime.
Relief has been given regarding income tax in the budget. Under the new tax regime, now tax will have to be paid at the rate of 5% on income of Rs 3 lakh to 7 lakh. Earlier it was up to 6 lakhs. Changes have also been made in other slabs of the new tax regime.
Apart from this, the standard deduction has also been increased from 50 thousand to 75 thousand rupees. These two changes will benefit taxpayers by up to Rs 17,500. However, no changes have been made to the old tax regime.
