Budget 2025: Will FM Sitharaman remove all exemptions under Old Tax Regime? SBI Research shares possibilities

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Budget 2025: Will FM Sitharaman remove all exemptions under Old Tax Regime? SBI Research shares possibilities

_{//business-finance.news-articles.net/content/202 .. ax-regime-sbi-research-shares-possibilities.html}
^{Published in Business and Finance on Sunday, January 26th 2025 at 0:00 GMT by MSN}

SBI Research report has proposed lowering the tax rate to 15% for the income range of Rs 10-15 lakh and implementing a flat 15% tax rate on all bank deposits.

The article from MSN discusses the potential changes in India's tax regime as outlined by SBI Research ahead of the 2025 Union Budget. It suggests that Finance Minister Nirmala Sitharaman might consider removing all exemptions under the old tax regime to simplify the tax structure. This move could encourage more taxpayers to shift to the new tax regime introduced in 2020, which offers lower tax rates but fewer exemptions. The SBI report highlights that such a change could lead to a more straightforward tax system, potentially increasing compliance and reducing tax evasion. However, it also notes the political and social implications of removing popular exemptions like those for housing loans, medical insurance, and education, which could face resistance. The article also touches on the broader economic context, including the government's fiscal strategy and the need to boost revenue without significantly increasing the tax burden on the middle class.

Read the Full MSN Article at:
[ https://www.msn.com/en-in/money/economy/budget-2025-will-fm-sitharaman-remove-all-exemptions-under-old-tax-regime-sbi-research-shares-possibilities/ar-AA1xS8JK ]

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