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Budget 2025: Tax Reduction Or Rationalisation? What Will FM Nirmala Sitharaman Opt for? Expert Take


//business-finance.news-articles.net/content/202 .. l-fm-nirmala-sitharaman-opt-for-expert-take.html
Published in Business and Finance on Friday, January 3rd 2025 at 12:40 GMT by MSN   Print publication without navigation

  • The clamour for tax cuts is growing louder and louder- with industry bodies chipping in with ideas of rationalising the tax slabs and increasing the tax bracket from current 7 lakh to 20 lakh per annum.

The article discusses the potential directions Finance Minister Nirmala Sitharaman might take regarding tax policies in the upcoming Budget 2025. Experts suggest that while a significant tax reduction might not be on the cards due to fiscal constraints, there could be a focus on tax rationalization. This could involve simplifying the tax structure, possibly by reducing the number of tax slabs or adjusting tax rates to make them more progressive. There's also speculation about changes in the new tax regime introduced in 2020, which might be made more attractive to encourage more taxpayers to opt for it. Additionally, there might be adjustments in tax exemptions and deductions to balance revenue collection with taxpayer relief. The article highlights the government's challenge in managing fiscal deficit while promoting economic growth, suggesting that any tax changes would aim to strike a balance between these objectives.

Read the Full MSN Article at:
[ https://www.msn.com/en-in/money/other/budget-2025-tax-reduction-or-rationalisation-what-will-fm-nirmala-sitharaman-opt-for-expert-take/ar-AA1wUEWx ]

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