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Finance Minister Nirmala Sitharaman may make these big tax changes like higher standard deduction and Section 80C limit in Budget 2025

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Shyamu Maurya
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Finance Minister Nirmala Sitharaman may make these big tax changes like higher standard deduction and Section 80C limit in Budget 2025The Income Tax Department has decided to conduct a strict investigation of large refund claims made fraudulently. Under this, monitoring of such employed people who are filing ITR collectively from a single agency will increase. The Central Board of Direct Taxes (CBDT) has issued new guidelines (SOP) in this regard. According to these instructions, suspicious returns and refunds will be marked using Artificial Intelligence (AI). The department has started a close scrutiny of those taxpayers whose returns came under scrutiny in the last 9 years. This also includes employed people who have filed returns collectively from a non-professional agency. The refund of many of these taxpayers is stuck for months. Department can recover refund It is being said that this step is likely to cause refund to get stuck this year. Experts say that the Income Tax Department has the right to recover the refund of the last four years if the refund claim made by a taxpayer is found to be wrong. Check refund status like this Go to the Income Tax Department portal (www.incometax.gov.in). Log in by entering user ID (PAN number) and password Click on My Account and open Refund/Demand Status. Select Income Tax Returns here. Now click on the receipt number. After this a new page will open, where all the information related to ITR will be visible. What to do in case of delay First of all check your e-mail. Income Tax Department sends refund or any kind of additional information or notice through e-mail. If the ITR status shows that the refund claim has been rejected, taxpayers can request for re-issue of refund. If the status shows that the claim is pending, they can contact the e-filing portal/assessing officer and request for early settlement. If there is still a delay.... Contact Income Tax Department: You can contact the Income Tax Department by calling their helpline 1800-103-4455 or email them at ask@incometax.gov.in. They can assist you with the status of your refund.

Budget 2025: As Finance Minister Nirmala Sitharaman gears up for the Budget 2025 announcements, various income tax reforms are anticipated. According to reports, here are five key tax changes that salaried individuals may expect in the upcoming Union Budget.

1) Standard Deduction Increase

One of the potential changes under consideration is an increase in the standard deduction for salaried individuals. Currently, salaried employees and pensioners enjoy a standard deduction of ₹50,000 under the old tax regime and ₹75,000 under the new regime. Experts suggest that this deduction could be linked to a percentage of an individual’s income, with a maximum cap of ₹1 lakh. This adjustment would provide better support to higher earners, especially given the rising inflation and cost of living.

2) Revised Income Tax Slabs

The government may consider further tweaks to the income tax slabs under the new tax regime to encourage more taxpayers to opt for it. Specifically, there’s speculation that the 30% tax rate could be applied to income levels above ₹20 lakh, a move that would better reflect the current economic environment. The new regime currently offers tax slabs as follows:

₹0-₹3 lakh: Nil
₹3-₹7 lakh: 5%
₹7-₹10 lakh: 10%
₹10-₹12 lakh: 15%
₹12-₹15 lakh: 20%
Above ₹15 lakh: 30%
This change is expected to bring more fairness and balance in the tax structure.

3) Senior Citizens’ Tax Reforms

While the new tax regime has uniform slabs for all taxpayers, there’s an ongoing conversation about offering differentiated benefits for senior citizens. The government might consider raising the exemption limit or reducing the tax rates for individuals aged 60 and above. This would make the tax system more favorable for the elderly, similar to the old regime, where the basic exemption limit for senior citizens was ₹3 lakh and ₹5 lakh for super senior citizens, according to a livemint report.

4) Raising Section 80C Deduction Limit

Another significant area of discussion is the Section 80C deduction limit. Currently, the maximum limit for deductions under Section 80C stands at ₹1.5 lakh. However, due to inflation and increasing financial pressures on taxpayers, experts are urging the government to raise this limit further. Balwant Jain has recommended increasing the Section 80C deduction limit to ₹3.5 lakh, which would help taxpayers keep pace with the rising cost of living and allow more room for investments like PPF, life insurance premiums, and ELSS.

5) Possible Import Duty Hike on Gold

Concerns around India’s trade deficit may lead the government to increase the import duty on gold in Budget 2025. Currently, India imposes a 6% import tax on gold, a reduction from the previous 15%. An increase in this duty could curb excessive gold imports and potentially reduce the country’s trade imbalance, but it may also lead to higher domestic prices of gold, deviating from international market trends.

Finance Minister Nirmala Sitharaman will on February 1 present the Union Budget 2025-26.


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