Budget 2025: Finance Minister Nirmala Sitharaman will present the budget for the financial year 2025-26 on February 1. Many good announcements are expected in this budget.
Budget 2025: Preparations for the general budget are going on in full swing. Amid the slowing Indian economy, all eyes are on this budget. Experts say that to increase demand in the market, Finance Minister Nirmala Sitharaman can make several announcements to put money in the hands of the common man. An increase in the income tax exemption limit is also expected to be announced in the budget. For a long time, taxpayers have been demanding an increase in the income tax exemption limit. Now tax consultant EY says that the upcoming budget is expected to focus on the encouragement of private capital expenditure, tax simplification and reduction in income tax to boost demand. Finance Minister Nirmala Sitharaman will present the Union Budget for the financial year 2025-26 on February 1.
More than 31 lakh crore stuck in income tax disputes
EY India said in a statement issued on the expectations related to the budget that more than Rs 31 lakh crore is stuck in income tax disputes till the financial year 2023-24. In view of this, there is an urgent need to clear pending cases with the Income Tax Commissioner (Appeals) and strengthen alternative dispute resolution mechanisms such as advance pricing agreements and safe havens. EY India National Tax Head Sameer Gupta said that although a comprehensive review of the Direct Tax Code may take time, we can see some initial steps towards its implementation in this budget.
Income tax exemption limit may increase
I also expect a reduction in personal income tax to boost demand, especially for the lower income group. The tax consulting and accounting firm said that its expectations from the budget are focused on strategic reforms that can move the economy forward. With an emphasis on fiscal consolidation, tax system simplification and investment-driven growth, the budget is expected to lay a solid foundation for sustainable economic growth. EY expects significant reforms to simplify the tax system and improve taxpayer services, reduce litigation and increase tax compliance.
