Income tax slab and rate changes expected in Union Budget 2025-26: In the run-up to Budget 2025, some media reports are speculating that the government may make the new tax regime more attractive for individual taxpayers while outlining a roadmap for phasing out the old tax regime.
Meanwhile, CNBC-TV18 reported on Friday (January 17, 2024) that the central government is considering a plan to provide tax relief to taxpayers, which would boost consumption and “stimulate economic activity”.
As per the CNBCTV-18 report, the government is looking to make the new tax regime more rewarding.
The second option being considered by the government is to adjust the tax slabs in the new tax regime, according to the CNBC-TV18 report. It said the government may expand the 20% tax slab under the new regime to include individuals earning up to ₹18 lakh or ₹20 lakh annually. Additionally, the 30% tax bracket may be imposed on incomes above ₹18 lakh or ₹20 lakh.
Upstox wasn’t able to independently verify both the reports by CNBC-TV18 and FE.
The final decision of the government will be known only on February 1, 2025, when the finance minister will present her budget speech before the parliament.
In the run-up to the budget, however, several tax experts and industry bodies are expecting that the government would revise the tax slab and rates under the new regime to put more money in the hands of taxpayers. This is in line with the government’s efforts to make the new tax regime more attractive with every budget since its introduction in 2020.
