New Delhi:
Budget 2025: Finance Minister Nirmala Sitharaman will present Union Budget 2025 on 1 February. In this budget, salary class is expected to get relief in Old Tax Regime. The new tax system was implemented in the budget presented last year, in which there was emphasis on sympathy.
However, despite this, many people still like the old system more today because it contains many deeds and examples. Under the old tax system, there are benefits like section 80C and 80D. Under 80C, investments like PPF, Life Insurance Premium and Home Loan Reperations provide deduction of up to Rs 1.5 lakh.
What is taxpayer expectations?
Demand for change in HRA
HRA Examination in metro cities like Delhi, Mumbai, Chennai and Kolkata is 50% of the basic salary, while in the rest of the cities it is limited to 40%. Keeping in mind the fast growing cities like Bengaluru, Hyderabad, Pune and Gurgaon, there is also a demand to increase the HRA limit to 50%.
Savings and deduction on FD
At this time, deduction is available only on savings account interest under section 80tta. There is a demand to increase this to term deposits to be implemented. Also, it has been suggested to increase this limit to Rs 50,000 so that people can be encouraged for savings.
Expect change in tax slab
There has been no change in tax slabs in the old tax system for the last few years. In this system, many deeds like house rent allowance, home loan interest and health insurance premium are benefited. On the other hand, low tax rates are advantage in the new tax system.
Demand to increase 80C limit
A limit of Rs 1.5 lakh was set in 2014-15 under section 80C. It is being suggested to increase it to Rs 3 lakh so that people can save more.
Old vs new tax system
In the last few years, the government has promoted the new tax system. In 2023-24, 72% taxpayers adopted a new system. Last year, it was made a default option in the budget, but the old system was alternatively available. This time it is expected that the old tax system will be improved, so that those who choose it will benefit more. Now it has to be seen what special announcements are made for taxpayers in the budget on 1 February.