Preparations for the next budget have begun. Finance Minister Nirmala Sitharaman has started discussions with stakeholders in this regard. The next budget is likely to be presented on February 1, 2025. Low-income group taxpayers may get a big relief in this.
New Delhi: There is good news for taxpayers. In the first budget of the third term of the Modi government presented in July, taxpayers got some relief. But in the next budget to be presented on February 1, 2025, taxpayers of low income group are likely to get big relief. Under the new tax regime, taxpayers falling in the tax slab of Rs 3 lakh to Rs 7 lakh can get the benefit of tax cuts. According to a report by ET Now, the government can increase the exemption limit beyond Rs 3 lakh under the new system. The report quoted sources as saying that big relief is expected for the lower income group but no significant change is expected for the higher tax slab. The final decision in this regard will be taken closer to the budget. In the budget presented in July, Finance Minister Nirmala Sitharaman gave some relief to taxpayers in the new tax regime for the financial year 2024-25. The tax slab was changed. No tax will have to be paid on income up to Rs 7 lakh. Also, the standard deduction limit was increased from Rs 50,000 to Rs 75,000.
CII’s suggestion
Industry body CII has suggested the government to stick to the fiscal deficit target of 4.9% of GDP for 2024-25 and 4.5% for 2025-26. It has also cautioned that excessively aggressive targets beyond these could adversely affect India’s economic growth. CII Director General Chandrajit Banerjee said that India is moving fast amid a slowing global economy. Prudent fiscal management for macroeconomic stability has been important for this growth.
