Budget 2025 income tax: Hike basic exemption limit to Rs 5 lakh and reduce tax rates, says EY – Newz9

Budget 2025 income tax expectations: Finance Minister Nirmala Sitharaman ought to think about elevating the basic exemption limit from Rs 3 lakh to Rs 5 lakh underneath the brand new tax regime, says EY in its pre-Budget 2025 suggestions.
EY, a number one consultancy agency among the many huge 4, has additionally really helpful that the federal government reduce income tax charges notably for decrease-bracket taxpayers, and proceed TDS rationalization within the Union Budget 2025,
EY has stated, “The upcoming budget should focus on personal tax relief by raising the basic exemption limit in the new tax regime from Rs 3 lakhs to Rs 5 lakhs and reducing tax rates. Clarifications on the perquisite valuation for EVs and clear guidelines for the taxation of cryptocurrency and non-fungible tokens (NFT), including the treatment of virtual digital asset (VDA) losses, are needed.”

The authorities will current the Union Budget on February 1, 2025, which can define income tax slabs and varied tax incentives for FY 2025-26.
Also Read | Budget 2025: Modi authorities to simplify income tax submitting guidelines, says report
The Modi authorities has initiated efforts to streamline Income Tax Laws. In the Budget 2024, introduced in July 2024, Finance Minister Nirmala Sitharaman introduced a evaluation of the Income Tax Act, 1961. EY says, “It should follow a consultative approach and invite public comments on the draft proposals.”
Income Tax litigation has immobilized over Rs 31 trillion in FY2023-24, representing 9.6% of India’s GDP. EY’s press launch emphasizes the pressing want to handle and reduce pending disputes while stopping new ones.