Budget 2025: Experts Bet On Benefit Based Changes In Taxation

Going into Budget 2025, tax payers and investors are keen on many structural changes that may be announced. The previous Budget had brought about structural changed to the new tax regime.

Experts suggest that there may not be drastic changes made in the existing system. Given that the structure was only revised during the last budget, expectation falls on some other moves.

While the probability of change in structure is limited, changes to benefit the tax payers have higher bets.

"I think broadly status quo. Not expecting any big changes this time around. May be more nudge towards the new tax regime by increasing some benefits or increasing the limits under it," said Mohit Gang, co-founder of Moneyfront. As more benefit based moves may be made, the expansion of relief, like deductions, can be expected.

"My expectation on the tax front is some relief for middle class taxpayers, especially in the new tax regime, by expanding the tax slabs," said Arnav Pandya, founder of Moneyeduschool. The revised slabs and the increased standard deduction were aimed at making the new tax regime more attractive to tax payers. The revised rates and the SD were set in place to help tax payers move out of the old tax regime.

The new structure levied no tax on income up to Rs 3 lakh. Income from Rs 3 lakh to Rs 7 lakh was taxed at 5% and income from Rs 7 lakh to Rs 10 lakh taxed at 10%.

Income from Rs 10 lakh to Rs 12 lakh was taxed at 15% and income from Rs 12 lakh to Rs 15 lakh will be taxed at 20%. Income earned above Rs 15 lakh is taxed at 30%.

The first two income brackets have been extended by a lakh and the brackets of the last two slabs remain unchanged. The government had also announced an increase in the standard deduction to Rs 75,000 from Rs 50,000 during the last Union Budget. This move aimed to benefit salaried individuals, providing them with higher tax savings and greater disposable income.