New Financial Year of Government will start from 1st April every year. The Government after preparing the figures of income and expenditures, published budget for the coming year. Formerly the budget was published in parliament on 28th or 29th February every year. Thereafter budget was published on 1st February every year.
Proposals of budget is presented by Finance Minister of the country. At present our finance minister Smt. Nirmala Sitharaman will present proposals of budget 2025-26 on 1st February, 2025 at the parliament. She is finance minister since last 7 years and this will be her 8th budget, including vote on accounts in the month of February, 2024. Since year 2014, NDA government has taken charge, 4 budgets were presented by late Shri Arun Jaitley, on by Piyush Goyal and by Nirmala Sitharaman.
Date of budget coming near and near, people become more excited that what kind of relief will be given in this budget. Their only expectation is relief in taxation, they do not want to pay tax, always wish that there should be relief in tax slab.
Expectations of taxpayers:
01. Change in tax slabs: At present we have two different slabs for tax payers, they will have to decide which will be useful to them and accordingly they will select that slab. Minimum exempted income should be increase up to Rs. 7,50,000 and thereafter slab should start. Maximum rate of tax should be 25% instead of 30%. Additional Sur Charge, Health and Education Cess should not be charged separately. Slab of tax should be as under:
Rate of Income-tax
| Total Income does not exceed Rs.7,50,000 | NIL |
| Total Income exceeds 7,50,000
But does not exceeds 15,00,000 |
10 per cent |
| Total income exceeds 15,00,000
But does not exceeds 20,00,000 |
Rs. 75,000 plus 20
per cent of 5,00,000 |
| Total income exceeds 20,00,000 | Rs.1,75,000 plus 25 per cent |
So accordingly Maximum Rate of Tax should be 25% for Individual, HUF, AOP and BOI. Same way tax on Firms, LLP and Companies should be 25%.
Salaried Tax Payers:
Standard Deduction which was increase from 50,000 to 75,000 in last budget, which should increase up to Rs.1,00,000.
Deduction of interest on housing Loan:
Under the head Income from House Property, deduction up to Rs.2,00,000 is available for interest paid on housing loan either for purchase of building or construction of building. This limit of Rs.2,00,000 is available since 2015-16. We know that now a days cost of building or construction of building is increased, therefore this limit of interest is also to be increase from Rs.2,00,000 to Rs. 3,00,000.
Deduction under section 80C:
An assessee being an individual or a HUF will be allowed deduction from gross total income of an amount not exceeding Rs. 1,50,000 in respect of amount paid or deposited in the following specified savings listed in section 80C(2) are as under:
- Life Insurance Premium paid,
- Contribution towards Provident Fund,
- Public Provident Scheme, 1968,
- Contribution to an approved Superannuation fund,
- Unit Link Insurance Plan, 1971,
- Unit Link Insurance Plan of the L.I.C. Mutual Fund,
- Tuition Fees of any two children,
- Equity shares or debentures forming part of any eligible issue of capital approved by the Board,
- Notified Bonds,
- Senior Citizens Savings Scheme Rules,2004,
- 5 year Time Deposit in an account with Post Office.
The limit of Rs. 1,50,000 is applicable since 2014-15, therefore it should be increased.
Charitable Trust:
Since last six years there are lots of new provisions are applicable to Charitable Trust, which are very harsh and difficult to follow by the trustees. Form No 10BA and 10BB are very lengthy, certain unnecessary questions are asked.
Audit Report is to be submitted before 2 months now before one month of submitting return of Income. When audit report is ready why one month time given for submitting return of income?
These are the expectations of tax payer to make easy.
Author Bio
Since the Government is discouraging savings by promoting NTR majority of the assessees preferred NTR only and actually there is no benefit in requesting for enhanced deductions. It may not be a surprise to us; they may abolish OTR in the budget.