BUDGET WISHLIST: GREEN PERKS, TAX BREAKS, REFORMS

With a new income tax law in the works, it is an opportune time for unified tax regime

- SONU IYER

Finance Minister Nirmala Sitharaman is set to present her second budget after the 2024 general elections, focusing on India's transition to a "Viksit Bharat" in the "Amrit Kaal." Key priorities include employment generation, skill development, and relief for those hit by inflation, with the broader goal of boosting GDP growth. Taxpayers, as always, hope for lower rates and concessions to increase disposable income. This could encourage savings, investments, and spending, thereby driving economic growth. With these expectations in mind, here are some potential directions for the Budget 2025 proposals from an individual tax perspective.

Towards a unified tax regime For the past five years, two tax regimes have run in parallel: the old tax regime with regular income slabs and deductions or exemptions, and the new regime with wider slabs and lower rates but no exemptions. Taxpayers could choose either. The objective of the new regime in the Budget 2020 was to simplify taxes. Subsequently, the government made several changes to the new tax regime to make it more attractive.