
Monica Yadav, New Delhi6 minutes ago
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Union Finance Minister Nirmala Sitharaman can give big relief to income tax payers while presenting the budget of 2025-26 on 1 February. According to sources, the government can give tax exemption to income taxpayers earning up to Rs 20 lakh.
For this, two options are currently being considered. First – to make annual income up to Rs 10 lakh tax-free and second – to create a new tax slab of 25% for those with income of Rs 15 to 20 lakh. However, this exemption is being prepared to be given only to those in the new tax regime.
Currently, with a standard deduction of Rs 75,000, a salaried person does not have to pay tax on income up to Rs 7.75 lakh. At the same time, those with income above Rs 15 lakh come in 30% tax slab. According to sources, if these options are implemented, the central government may suffer a revenue loss of around Rs 50,000 crore to Rs 1 lakh crore.


Expert said… there should be 25% slab for those with income up to Rs 20 lakh At a time when GDP growth is slow, relief in income tax exemption will increase urban consumption. Earlier, income tax relief was given in the budget of 2023. Then the tax exemption under Section 87A was increased to Rs 7 lakh for those in the new tax regime. However, most of the exemptions are not available in the new tax regime.
Akhilesh Ranjan, former member of the Central Board of Direct Taxes, says that the government should bring a tax slab of 25% for those earning between Rs 15 lakh to Rs 20 lakh. With this, people will have more money, which will increase consumption. These are the same people who buy consumer durables like fridge, TV. Professor of Institute for Advanced Studies in Complex Choices. Anil Sood also says – 30% tax rate on income slightly above Rs 15 lakh is not right.


Difference between old and new tax regime, new option given in 2020 There are two options for filing income tax return. A new option was given on 1 April 2020. In the new tax slab, the range of tax free income was increased from Rs 2.5 lakh to Rs 3 lakh, but tax deductions were taken away. At the same time, if you choose the old tax slab, you can take advantage of many types of tax deductions.