Finance Minister Nirmala Sitharaman is set to present the union budget for 2025-26 on February 1, 2025. WION tells you what Indian taxpayers expect from this year's budget.

India Budget 2025: What Indian taxpayers are expecting from upcoming budget?

SBI research has outlined key recommendations aimed at addressing critical areas of India’s economy. These include a universal income transfer scheme, reforms to boost the insurance sector, and a roadmap for GST reforms. Let’s delve into each of these proposals and their potential impact.

India Budget 2025: SBI recommends universal income scheme & tax reforms

As Budget 2025 approaches, it’s time to spotlight a forgotten group: India’s senior citizens. After decades of paying taxes and contributing to nation-building, they now face rising medical costs, no social security, and unfair taxes on essentials like health insurance, life insurance, and annuities. Will the government finally address their struggles and honor their lifetime of contributions? Take a look at this report to find out more.

India Budget 2025: India's $2 trillion stock rally stumbles

India Budget 2025: Spotlight on Seniors

US President Donald Trump's recent active orders are raising concerns about the potential impact on global trade. It's a tricky time for India to determine the country's budget. WION decodes how Trump 2.0 will impact India's budget.

India's budget braces for US tariffs

Tax reforms dominate middle-class expectations as we await Budget 2025. The government is expected to unveil a slew of initiatives, including tax cuts, capital expenditures, and additional jobs, or some combination of these, to boost sentiment and help the economy overcome the speed-breaker that has stalled its growing momentum. Take a look at this budget report for more on this.

India Budget 2025: The focus in India's budget will be the policy on taxes

India Budget 2025: Calls for overhaul of 60-year-old tax code have risen

India's upcoming Union Budget 2025, scheduled to be presented by Finance Minister Nirmala Sitharaman on February 1, is likely to feature a streamlined customs duty structure, with fewer tax slabs, as part of the government's ongoing initiative to simplify and modernise the country's trade policies.
India currently has more than 40 customs duty rates, including specific duties, and the proposed changes aim to streamline the system and reduce complications.
For Budget 2025, while the government's focus seems to be the simplification of income tax laws and expanding the income tax base, individuals eagerly await news on the reduction of their income tax outgo.
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<h2 dir="ltr">Changes expected in the new tax regime</h2>
For salaried taxpayers, the standard deduction could be increased from the current Rs 75,000 ($867.46) to Rs 1 lakh ($1156.62). This was last increased in Budget 2024 from Rs 50,000 ($578.31) to Rs 75,000 ($867.46).
Extend the tax rebate under section 87A to taxpayers with taxable income up to Rs 1 million ($11566) from the existing limit of Rs 7 lakh ($8096).
The government's 'Housing for all' initiative might lead to the introduction of a deduction for interest on loans of up to Rs 2 lakh ($2313.23) for self-occupied house property in the new tax regime. Currently, this benefit is only available under the old tax regime.
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<h2 dir="ltr">Tax benefit for interest on savings accounts and fixed deposits</h2>
To encourage savings when interest rates are low and inflation is high, the government could consider extending the deduction under Section 80TTA. Currently, this section only allows deductions on interest earned from savings accounts, up to a limit of Rs 10,000 ($115.66)
Extending this deduction to interest on term deposits and increasing the limit to Rs 50,000 ($578.31) would be a significant incentive for savers. This move would also align with the benefits already available to senior citizens under Section 80TTB, which allows deductions of up to Rs 50,000 ($578.31) on interest from deposits, including fixed deposits and recurring deposits.
<h2 dir="ltr">Income tax benefits on buying Electric Vehicles (EV)</h2>
To boost electric vehicle (EV) adoption, the government could clarify tax benefits for employer-provided EVs and extend the deduction of up to Rs 1,50,000 ($1734.92) per annum on interest paid on EV loans, which currently expires on March 31, 2023.
<h2 dir="ltr">Extending the due date for filing belated or revised tax returns</h2>
Taxpayers face challenges claiming foreign tax credits in India due to differing tax years. To address this, the deadline for filing revised/belated returns should be extended beyond Dec 31 of the assessment year.
(With inputs from agencies)

India News: Discover how India's Union Budget aims to simplify trade with a streamlined customs duty structure with fewer tax slabs to simplify and modernise the country's trade policies

India's upcoming Union Budget 2025, scheduled to be presented by Finance Minister Nirmala Sitharaman on February 1, is likely to feature a streamlined customs duty structure, with fewer tax slabs, as part of the government's ongoing initiative to simplify and modernise the country's trade policies. India currently has more than 40 customs duty rates, including specific duties, and the proposed changes aim to streamline the system and reduce complications. For Budget 2025, while the government's focus seems to be the simplification of income tax laws and expanding the income tax base, individuals eagerly await news on the reduction of their income tax outgo. Also read | Nearly 4 in 5 Indian employers report difficulty finding skilled talent in 2025: Report Changes expected in the new tax regime For salaried taxpayers, the standard deduction could be increased from the current Rs 75,000 ($867.46) to Rs 1 lakh ($1156.62). This was last increased in Budget 2024 from Rs 50,000 ($578.31) to Rs 75,000 ($867.46). Extend the tax rebate under section 87A to taxpayers with taxable income up to Rs 1 million ($11566) from the existing limit of Rs 7 lakh ($8096). The government's 'Housing for all' initiative might lead to the introduction of a deduction for interest on loans of up to Rs 2 lakh ($2313.23) for self-occupied house property in the new tax regime. Currently, this benefit is only available under the old tax regime. Also read | India: Uber, Ola face govt probe over allegations of differential pricing for iPhones, Android Tax benefit for interest on savings accounts and fixed deposits To encourage savings when interest rates are low and inflation is high, the government could consider extending the deduction under Section 80TTA. Currently, this section only allows deductions on interest earned from savings accounts, up to a limit of Rs 10,000 ($115.66) Extending this deduction to interest on term deposits and increasing the limit to Rs 50,000 ($578.31) would be a significant incentive for savers. This move would also align with the benefits already available to senior citizens under Section 80TTB, which allows deductions of up to Rs 50,000 ($578.31) on interest from deposits, including fixed deposits and recurring deposits. Income tax benefits on buying Electric Vehicles (EV) To boost electric vehicle (EV) adoption, the government could clarify tax benefits for employer-provided EVs and extend the deduction of up to Rs 1,50,000 ($1734.92) per annum on interest paid on EV loans, which currently expires on March 31, 2023. Extending the due date for filing belated or revised tax returns Taxpayers face challenges claiming foreign tax credits in India due to differing tax years. To address this, the deadline for filing revised/belated returns should be extended beyond Dec 31 of the assessment year. (With inputs from agencies)

Indian Budget 2025: Personal tax reforms–What to expect for individual taxpayers?

As India gears up to present its budget for the upcoming fiscal, micro, small and medium enterprises are in focus. With the sector contributing close to 30% of country's GDP, we look at the industry's wishlist in today's budget segment.

MSME Sector Wishlist: Rationalisation of GST structure

Will MSME sector get a boost from India's budget

India will once again look at managing its finances in a disciplined manner. The budget on February 1 will likely show the government's commitment to bringing down the fiscal deficit again. Look at our report as we decode the nuances of India's fiscal strategy for the upcoming financial year.

India to stay on fiscal consolidation path

India's budget will aim for fiscal discipline

Reports suggest India is set to revamp its tax landscape with a groundbreaking income tax bill expected in the 2025 budget session. The potentially bold move is aimed at modernizing and simplifying the six-decade-old income tax act of 1961. Reports also suggest the government plans to introduce an entirely new law rather than amending the existing one.

India Budget 2025: India to modernize tax code in 2025?

As the countdown to February 1 begins, all eyes are on Finance Minister Nirmala Sitharaman, who will present the Union Budget 2025.  
Indian markets are especially on the edge, given the direct impact on market sentiments.
Our next report looks at how this budget will play a pivotal role in boosting investor confidence.

Indian markets await budget 2025 for economic direction

Budget 2025 Focus Areas: Infrastructure, tax reforms, & incentives

Rising costs, stubborn inflation, and soaring taxes—India's middle class is feeling the pinch like never before. As Budget 2025 looms, the nation’s backbone demands an overhaul to ease their financial burdens. Here's our comprehensive report on their wishlist. Watch in for more details!

India Budget 2025: Middle class pins hopes on budget 2025

Indian Finance Minister Nirmala Sitharaman on Wednesday (August 7) said "we heard the people" as she confirmed revised&nbsp;real estate indexation rules in the Parliament.&nbsp;

With the relaxed rules,&nbsp;taxpayers will get more flexibility in calculating their long-term capital gains tax.

"The amendment gives taxpayers a choice to calculate and see what works better for them. The current amendment ensures that there will be no additional tax burden on people," Sitharaman said.

<h2 bis_size="{&quot;x&quot;:8,&quot;y&quot;:150,&quot;w&quot;:723,&quot;h&quot;:26,&quot;abs_x&quot;:41,&quot;abs_y&quot;:1836}">What changes did she announce?</h2>

The changes introduced by Sitharaman provide property owners&nbsp;who sold assets before July 23, 2024, two options for calculating their long-term capital gains tax.&nbsp;Taxpayers&nbsp;can choose between the new and old tax regimes, thus selecting the one with the lower tax liability.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/over-100-animals-being-cared-for-in-aftermath-of-wayanad-landslides-748062">Over 100 animals being cared for in Wayanad after devastating landslides</a>

<h3 bis_size="{&quot;x&quot;:8,&quot;y&quot;:264,&quot;w&quot;:723,&quot;h&quot;:20,&quot;abs_x&quot;:41,&quot;abs_y&quot;:1950}">12.5% LTCG rate without indexation</h3>

Taxpayers can pay a lower rate of 12.5 per cent on capital gains from property sales without adjusting the purchase price for inflation.

<h3 bis_size="{&quot;x&quot;:8,&quot;y&quot;:354,&quot;w&quot;:723,&quot;h&quot;:20,&quot;abs_x&quot;:41,&quot;abs_y&quot;:2040}">20% LTCG rate with indexation</h3>

Taxpayers can opt for a 20 per cent tax rate while adjusting the property's purchase price for inflation using the Cost Inflation Index (CII), potentially reducing their taxable gains.

<h2 bis_size="{&quot;x&quot;:8,&quot;y&quot;:446,&quot;w&quot;:723,&quot;h&quot;:26,&quot;abs_x&quot;:41,&quot;abs_y&quot;:2132}">Reduced burden on middle class</h2>

Sitharaman emphasised the government's commitment to a simplified tax structure while responding to criticisms that corporate taxes are lower than individual taxes and said that the tax burden on the middle class has been reduced.

She noted that the effective tax on an annual income of Rs 15 lakh ($137,000) was lowered to 10 per cent in 2023 and further reduced this year.

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<blockquote class="twitter-tweet" data-media-max-width="560">
There is a narrative about us 'not doing anything' about the middle class &amp; them being 'angry' with us. I want them to understand that this country had 98% taxation in one of the earlier regimes, which also never cared about the fundamental rights of the citizens. The regime… <a href="https://t.co/WtdOnlkLdb">pic.twitter.com/WtdOnlkLdb</a>
— Nirmala Sitharaman Office (@nsitharamanoffc) <a href="https://twitter.com/nsitharamanoffc/status/1821201978585964806?ref_src=twsrc%5Etfw">August 7, 2024</a></blockquote>
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"Corporate taxes are lower than the individual taxes claim is not well founded. It is not based on facts," she said, refuting claims that the government favours big corporations over middle-class taxpayers.

Also read |&nbsp;<a bis_size="{&quot;x&quot;:8,&quot;y&quot;:657,&quot;w&quot;:684,&quot;h&quot;:34,&quot;abs_x&quot;:41,&quot;abs_y&quot;:2343}" href="https://www.wionews.com/india-news/pulling-hair-pushing-a-woman-during-quarrel-does-not-mean-outraging-her-modesty-bombay-hc-748031">Pulling hair, pushing a woman during quarrel does not mean outraging her modesty: Bombay HC</a>

"One should note that the corporates are legal entities. The dividend income is also part of the profits. It was earlier taxed at a lower rate in the hands of the company. In 2020, we started taxing it at the hands of shareholders at the applicable rate. This effectively meant the richer shareholders would pay tax on dividends at 39 per cent rate. In contrast, small and medium-income taxpayers will pay tax on dividends at even less than 10 per cent, which is the effective tax rate. Therefore, the argument that you burden the middle-class taxpayers by supporting only big corporations is not true," she said.

"Without drastically increasing taxes, we have brought in a simplified taxation regime and eased compliance," she added.&nbsp;

<h2 bis_size="{&quot;x&quot;:8,&quot;y&quot;:879,&quot;w&quot;:723,&quot;h&quot;:26,&quot;abs_x&quot;:41,&quot;abs_y&quot;:2565}">More and more prefer the new tax regime: Sitharaman</h2>

Sitharaman highlighted the growing preference for the New Tax Regime, with 72.8 per cent of taxpayers opting for it this year.

Sitharaman also addressed concerns about savings and said: "Middle class losing out is not a correct argument. The new regime is promoting investment, which is happening with investment in mutual funds have increased tremendously".

"The vision of PM Modi has been to establish a simple, efficient and fair technology-driven taxation regime in this country. So, simplification and ease of compliance for the taxpayer has been the primary objective with which in the last 10 years, and this year, in the third term of PM Modi, the approach to taxation has been to simplify it, reduce the burden on taxpayer and make sure it is transparent and Equitas," she concluded.

(With inputs from agencies)

Indian Finance Minister Nirmala Sitharaman on Wednesday (August 7) said "we heard the people" as she confirmed revised real estate indexation rules in the Parliament.

Indian Finance Minister Nirmala Sitharaman on Wednesday (August 7) said "we heard the people" as she confirmed revised real estate indexation rules in the Parliament. With the relaxed rules, taxpayers will get more flexibility in calculating their long-term capital gains tax. "The amendment gives taxpayers a choice to calculate and see what works better for them. The current amendment ensures that there will be no additional tax burden on people," Sitharaman said. What changes did she announce? The changes introduced by Sitharaman provide property owners who sold assets before July 23, 2024, two options for calculating their long-term capital gains tax. Taxpayers can choose between the new and old tax regimes, thus selecting the one with the lower tax liability. Also read | Over 100 animals being cared for in Wayanad after devastating landslides 12.5% LTCG rate without indexation Taxpayers can pay a lower rate of 12.5 per cent on capital gains from property sales without adjusting the purchase price for inflation. 20% LTCG rate with indexation Taxpayers can opt for a 20 per cent tax rate while adjusting the property's purchase price for inflation using the Cost Inflation Index (CII), potentially reducing their taxable gains. Reduced burden on middle class Sitharaman emphasised the government's commitment to a simplified tax structure while responding to criticisms that corporate taxes are lower than individual taxes and said that the tax burden on the middle class has been reduced. She noted that the effective tax on an annual income of Rs 15 lakh ($137,000) was lowered to 10 per cent in 2023 and further reduced this year. There is a narrative about us 'not doing anything' about the middle class & them being 'angry' with us. I want them to understand that this country had 98% taxation in one of the earlier regimes, which also never cared about the fundamental rights of the citizens. The regime… pic.twitter.com/WtdOnlkLdb — Nirmala Sitharaman Office (@nsitharamanoffc) August 7, 2024 × "Corporate taxes are lower than the individual taxes claim is not well founded. It is not based on facts," she said, refuting claims that the government favours big corporations over middle-class taxpayers. Also read | Pulling hair, pushing a woman during quarrel does not mean outraging her modesty: Bombay HC "One should note that the corporates are legal entities. The dividend income is also part of the profits. It was earlier taxed at a lower rate in the hands of the company. In 2020, we started taxing it at the hands of shareholders at the applicable rate. This effectively meant the richer shareholders would pay tax on dividends at 39 per cent rate. In contrast, small and medium-income taxpayers will pay tax on dividends at even less than 10 per cent, which is the effective tax rate. Therefore, the argument that you burden the middle-class taxpayers by supporting only big corporations is not true," she said. "Without drastically increasing taxes, we have brought in a simplified taxation regime and eased compliance," she added. More and more prefer the new tax regime: Sitharaman Sitharaman highlighted the growing preference for the New Tax Regime, with 72.8 per cent of taxpayers opting for it this year. Sitharaman also addressed concerns about savings and said: "Middle class losing out is not a correct argument. The new regime is promoting investment, which is happening with investment in mutual funds have increased tremendously". "The vision of PM Modi has been to establish a simple, efficient and fair technology-driven taxation regime in this country. So, simplification and ease of compliance for the taxpayer has been the primary objective with which in the last 10 years, and this year, in the third term of PM Modi, the approach to taxation has been to simplify it, reduce the burden on taxpayer and make sure it is transparent and Equitas," she concluded. (With inputs from agencies)

Nirmala Sitharaman says burden on middle class narrative ‘not based on facts’; clarifies real estate taxes

We turn our focus to some findings in india's budget, which fell short of tax reforms widely expected by the middle class. India has exempted investments in some funds made through gujarat international finance tec-city (gift city) by non-resident indians, or nris and foreign retail investors.

India exempts foreigners investing in gift city from taxes

India's first budget after prime minister Narendra Modi's re-election for a third term focused on a boost to religious tourism. However, the focus was largely on developing religious sites in Bihar.&nbsp;

The states of Andhra Pradesh and Bihar, run by allies of Modi, were allocated additional funding as the government attempted to satisfy their coalition partners' demands, without blowing out their finances.&nbsp;

Andhra Pradesh is set to receive 150 billion rupees in financial aid via multilateral institutions. Meanwhile, roads, airports, medical colleges, and improved tourist spots in Bihar are promised.&nbsp;

The budget puts Bihar's religious tourist hotspots in focus, with plans to build a corridor connecting Gaya's Vishnupad temple and Bodh Gaya's Mahabodhi temple, as well as to restore Rajgir, a sacred site for Hindus, Buddhists, and Jain devotees.&nbsp;

The restoration of Nalanda university, aid for the growth of the tourist industry in Odisha, and a simplified tax system for international shipping companies that engage in domestic cruise tourism in India were among the other tourism-related initiatives mentioned.&nbsp;

However, the focused funding for Bihar and Andhra Pradesh will come under scrutiny.&nbsp;

India's first budget after prime minister Narendra Modi's re-election for a third term focused on a boost to religious tourism. However, the focus was largely on developing religious sites in Bihar.

India's first budget after prime minister Narendra Modi's re-election for a third term focused on a boost to religious tourism. However, the focus was largely on developing religious sites in Bihar. The states of Andhra Pradesh and Bihar, run by allies of Modi, were allocated additional funding as the government attempted to satisfy their coalition partners' demands, without blowing out their finances. Andhra Pradesh is set to receive 150 billion rupees in financial aid via multilateral institutions. Meanwhile, roads, airports, medical colleges, and improved tourist spots in Bihar are promised. The budget puts Bihar's religious tourist hotspots in focus, with plans to build a corridor connecting Gaya's Vishnupad temple and Bodh Gaya's Mahabodhi temple, as well as to restore Rajgir, a sacred site for Hindus, Buddhists, and Jain devotees. The restoration of Nalanda university, aid for the growth of the tourist industry in Odisha, and a simplified tax system for international shipping companies that engage in domestic cruise tourism in India were among the other tourism-related initiatives mentioned. However, the focused funding for Bihar and Andhra Pradesh will come under scrutiny.

Modi 3.0 budget: Financial guarantees for political allies

Indian Finance Minister Nirmala Sitharaman is currently presenting the Union Budget in Lok Sabha. The Budget is being considered the action plan for the Modi 3.0 govt to outline a roadmap towards India's development in the next five years.

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India's Finance Minister will be announcing the Union Budget on July 23rd. Just weeks after the election, the government seeks to push economic growth via inflation stabilisation across sectors. Here's a report on what small business owners have to say on the challenges they face, and hopes they have from the budget.

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It's time for India's Union Budget presentation today as the country gears up for a pivotal moment in its economic roadmap. All eyes are on New Delhi as Finance Minister Nirmala Sitharaman presents the Union Budget of India.

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The Union Budget is presented by the NDA administration. It is anticipated that during the monsoon session, which is set to run through August 12, at least six Bills would be introduced in Parliament.

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The Indian government has recently announced significant changes to the income tax regime, providing substantial relief to salaried individuals and pensioners. With the revised tax slabs and increased standard deductions, many taxpayers are set to benefit from significant savings.

India Budget 2024: Decoding your tax burden after the budget

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Finance Minister Nirmala Sitharaman presented the Union Budget 2024 in Parliament. FM Sitharaman said that the budget's focus is on employment, skilling, MSME & the middle class. The budget 2024 envisaged sustained efforts on 9 priorities for generating ample opportunities for all. Here are the key highlights from Finance Minister Nirmala Sitharaman's Budget Speech.

India Budget 2024: What are the key highlights of India's Union Budget

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