Salaried Class Awaits Budget 2025 Relief: Tax Reforms Expected

The Union Budget 2025-26, set for February 1, may offer significant tax relief for salaried individuals. Finance Minister Nirmala Sitharaman is expected to revise income tax slabs and enhance deductions to ease middle-class burdens amid inflation, potentially reducing tax compliance and fostering economic participation.

The Union Budget 2025-26, scheduled for presentation on February 1, may bring hopeful news for the salaried class. Finance Minister Nirmala Sitharaman is expected to announce substantial tax relief aimed at alleviating concerns of middle-class taxpayers amid rising inflation.

Current tax structures, criticized for being outdated amid escalating living costs, could see revisions with increased basic exemption limits. Experts predict these changes will provide much-needed reprieve for small taxpayers, easing compliance burdens and lowering tax filing obligations.

Akhil Chandna, a partner at Grant Thornton Bharat, anticipates measures addressing pressing financial issues. Expectations are high for reductions in personal income tax rates, especially for those earning up to Rs 15 lakh annually, under both old and new tax regimes. These changes align with the Union Budget 2025 Pre-Budget Expectations Survey, where 63% of respondents favored increased deductions.

(With inputs from agencies.)