Good news for taxpayers! Will you get 2 big gifts in income tax? – Variousinfo

There is a lot of excitement about India’s upcoming Budget 2025-26. Experts believe that taxpayers can get two big gifts in this budget. This budget not only aims to strengthen the economy of the country but also reduces the burden on the pockets of common citizens. The Finance Ministry has indicated that some important changes can be made in the tax regime in this budget.

In this budget, the government’s focus is expected to be on the middle class and employed people. Efforts can be made to make the New Income Tax Regime more attractive. Also, new provisions can be brought to encourage investment in many sectors. Let us know what big gifts taxpayers can get in Budget 2025-26.

Highlights of Budget 2025-26

Before knowing about Budget 2025-26, let’s take a look at some of its highlights:

First Big Gift: Change in New Income Tax Regime

The first big gift that taxpayers will get in Budget 2025-26 could be a possible change in the New Income Tax Regime. Some important steps can be taken to make this new tax structure more attractive:

1. Change in tax slab: The tax slab can be made more liberal in the new regime. Due to this, taxpayers will have to pay less tax.
2. Standard Deduction: Standard deduction facility can be given in the new tax regime, which is currently available only in the old regime.
3. Increase in exemption limit: The tax-free income limit can be increased, which will provide relief to low-income people.
4. Simplification: The tax calculation process can be further simplified, which will help taxpayers to understand and pay their taxes easily.

With these changes, the New Income Tax Regime may become more popular, which will motivate more and more people to adopt it.

Second Big Gift: Investment Incentive Schemes

The second big gift that taxpayers will get in Budget 2025-26 can be in the form of investment incentive schemes. The government may bring several new schemes and provisions to promote investment in various sectors:

1. Infrastructure Bonds: The government may offer additional tax incentives on investments in infrastructure bonds.
2. Green Energy Investment: Special tax benefits may be given to those investing in renewable energy sector.
3. Startup Investment: New tax incentives can be announced for those investing in startups.
4. Digital Economy: Special schemes can be introduced to encourage investment in the digital sector.

These investment promotion schemes will not only give taxpayers an opportunity to increase their savings, but will also provide an opportunity to contribute to the development of the country.

Special provision for middle class

Some special provisions can be made for the middle class in Budget 2025-26:

1. Interest rebate on home loan: The limit of interest rebate on home loan can be increased.
2. Education Loan: Tax exemption on education loan can be increased.
3. Health Insurance: The exemption limit on health insurance premium can be increased.
4. Pension Schemes: Investments in pension schemes like NPS may offer additional tax benefits.

These provisions will help the middle class to better manage their income and save for the future.

Benefits for the working class

The working class can also be taken into consideration in Budget 2025-26:

1. Transport Allowance: The tax-free limit of transport allowance can be increased.
2. Food Coupons: The discount available on food coupons or meal vouchers can be increased.
3. Work from home allowance: A new tax-free allowance for work from home may be introduced.
4. Skill Development: Tax exemption can be given on expenditure incurred on skill development.

These benefits will help the working class to make better use of their income and increase their purchasing power.

boost digital economy

Some special provisions can be made to encourage digital economy in Budget 2025-26:

1. Digital Payments: Special discounts or cashback schemes to promote digital payments.
2. E-commerce: Tax incentives to encourage online business.
3. Fintech: Special tax benefits for fintech companies.
4. Cyber ​​Security: Additional tax exemption on investments in cyber security.

These provisions will promote the digital economy and help in taking the country’s economy into the digital age.

Green Energy and Sustainable Development

Budget 2025-26 may also focus on environmental protection and sustainable development:

1. Solar Panel: Additional tax exemption on installing solar panels in homes.
2. Electric Vehicles: Special discounts or subsidies on the purchase of electric vehicles.
3. Green Building: Tax benefits on construction of environment friendly buildings.
4. Recycling: Incentives on investment in recycling and waste management.

These provisions will not only help in environmental protection but will also create new employment opportunities in the field of green technology.

Promote startup ecosystem

Some important steps can be taken to strengthen the startup ecosystem in Budget 2025-26:

1. Tax Holiday: Tax holiday period can be extended for new startups.
2. Angel Tax: Tax rules may be relaxed for angel investors.
3. R&D expenditure: Additional tax exemption on expenditure incurred on research and development.
4. ESOP Taxation: Reforms in tax rules on ESOP (Employee Stock Ownership Plan).

These provisions will help startups to grow their business and encourage innovation.

Disclaimer:

This article is for informational purposes only. The information given about Budget 2025-26 is based on estimates and expert opinions. Actual budget announcements may differ from this. Please confirm with authorized sources and seek professional advice before making any financial decisions. The author or publisher is not responsible for any damages or consequences caused by the use of this information.