Wed Jan 29 04:53:09 UTC 2025: ## Union Budget 2025: Tax Breaks, MSP Hike, and Industry Status Among Key Expectations

**New Delhi, Jan 31, 2024** – Finance Minister Nirmala Sitharaman will present her eighth consecutive Union Budget on February 1st, 2025, for the fiscal year 2025-26. The budget is keenly awaited by various sectors, with several key demands surfacing ahead of the announcement.

**Real Estate Sector Seeks Relief:** Stakeholders in the real estate sector are pushing for an increase in the income tax deduction limit on home loan interest, hoping to stimulate homeownership. They also advocate for the reinstatement of input tax credit under GST, previously benefiting builders and homebuyers. The sector is optimistic following the government’s policies that have revived stalled projects.

**Homebuyers Anticipate Subsidy Revival:** Home loan applicants are anticipating measures to make homeownership more accessible. A key demand is the relaunch of the Credit Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana for the Middle Income Group (MIG) category, providing a subsidy of ₹2.67 lakh.

**High-Income Tax Bracket Reduction Possible:** Speculation suggests a potential reduction in the high-income tax bracket. Reports indicate that the tax rate for annual incomes above ₹15 lakh might be lowered from 30% to 25%, a recommendation also made by SBI.

**Farmers Demand MSP Expansion and Reform:** Farmers’ organizations, including the Bharatiya Kisan Union (BKU), are advocating for significant changes to the Minimum Support Price (MSP) system. Their demands include expanding the scope of MSP beyond the current 23 crops and creating a more comprehensive system that factors in land rent, labor costs, and post-harvest expenses.

**Hospitality Sector Aims for Industry Status:** The hospitality sector is hoping to finally achieve industry status, a long-standing demand given its substantial employment generation.

**Gold Import Duty Hike Possible:** A potential increase in import duty on gold is also being discussed, reversing the cut implemented in July 2024. This could weaken the Rupee against the dollar.

**Senior Citizens Seek Rail Concession Revival:** Senior citizens have requested the restoration of rail fare concessions, a benefit withdrawn during the COVID-19 pandemic. The upcoming budget promises to address these and other crucial demands across various sectors.

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