Union Budget Session 2025: Finance Minister Nirmala Sitharaman is going to present the budget on 1 February. What announcement is the Finance Minister going to make regarding the middle class? The middle class and taxpayers are expected to get many types of relief from Budget 2025.
cut tax rates
Tax rates can be reduced for families with annual income up to Rs 15-20 lakh. At present, 30 percent tax is levied on income above Rs 10 lakh. Considering the current level of inflation, tax cuts have become necessary so that the economic condition of the middle class can be strengthened.
Union Budget Session 2025: Increase in standard deduction
Standard deduction of Rs 50 thousand is available in the old tax system and Rs 75 thousand in the new system. In view of inflation, there is a demand to increase this deduction further.
Special relief for senior citizens
There is a demand to increase the tax exemption limit for senior citizens. In the current system, there is tax exemption on income up to Rs 2.5 lakh (old system) and Rs 3 lakh (new system). In the new system this limit should be Rs 10 lakh and in the old system it should be Rs 7 lakh.
Home Loan (Union Budget Session 2025)
Under Section 24B, there is a deduction of Rs 2 lakh on interest on home loan. There is a need to increase it to Rs 3 lakh, so that taxpayers can get more relief. Along with this, it has been suggested to create a new category for deduction on principal amount.