Budget 2025: For many, the budget’s tax implications are paramount, with hopes for reduced taxes or added exemptions. Notably, while 10 crore Indians file tax returns, 7 crore don’t pay taxes due to rebates, leaving only 3 crore actual income taxpayers, with 95% being salaried individuals.
In an exclusive interview with News24, former finance secretary Subhash Chandra Garg said that the finance minister should consider merging the two existing tax systems into a single, unified system.
Garg said, “The finance minister should consider merging the two existing tax systems into a single, unified system.” “Having two tax slabs creates unnecessary complexity, leading to confusion,” he further added.
“The old tax scheme remains attractive due to exemptions that offer significant savings, such as deductions on housing loan interest, which can be substantial, especially for large loans. Therefore, the two tax schemes should be merged, retaining beneficial exemptions, to create a unified and simplified system,” remarked Garg.
Budget 2025: What Else?
Union Finance Minister Nirmala Sitharamana will present the union budget in the Parliament on February 1, 2025. With this, she will become the first ever finance minister of the country to present the Union Budget for the 8th consecutive time. While, there are so many hopes from the upcoming budget, the focus on the issues related to income tax remains primary.
