Sat Jan 25 13:16:48 UTC 2025: ## India’s Budget 2025-26: Salaried Class Awaits Tax Relief

**New Delhi, January 31, 2024** – As India awaits the presentation of Budget 2025-26 on February 1st, anticipation is high among the salaried class, who are hoping for measures to alleviate their tax burden. Economists are urging Finance Minister Nirmala Sitharaman to increase the tax exemption limit and standard deduction under the new tax regime, currently set at Rs 3 lakh and Rs 75,000 respectively. This, they argue, would significantly benefit a large number of taxpayers.

Experts suggest further tax benefits could include incentives for electric vehicle purchases, support for the housing sector, and streamlined real estate transactions for Non-Residential Indians (NRIs). However, Deloitte India’s Executive Director Deepika Mathur believes that any relief is likely to be confined to those under the new tax regime, with no significant changes expected for those using the old system. She anticipates a potential increase in the standard deduction within the new regime.

The new tax regime offers simplified filing and lower rates but lacks the deductions available under the old, higher-rate system. This has led to concerns about the disproportionate tax burden on the middle class, as highlighted by Sanchita Mukherji, Senior Business Economist and Managing Partner at ‘Talk The Walk’. Mukherji points out that salaried individuals face double taxation, first on their income and then again on spending and capital gains.

Another key issue raised is the difficulty faced by NRIs and overseas Indians in paying taxes, with payments currently restricted to Indian bank accounts. Mathur advocates for allowing tax payments from overseas accounts to simplify the process and encourage compliance.

Ultimately, the upcoming budget will determine whether the government will address these concerns and deliver meaningful tax relief to the salaried class, or whether their hopes for substantial change will remain unfulfilled. The spotlight is firmly on February 1st.

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