The tax discounts and the rationalization of income taxes offered in the FY2025-26 budget by the Minister of Finance Nirmala Sitharaman should help 99% of taxpayers of the country’s income tax.
The Minister, who filed the Union’s budget for the next financial year in Parliament on February 1, reduced the income tax on a large part of the salaried taxpayers in India by increasing the taxes on income and by providing a major rebate on income up to Rs 12.75 Lakh per year. She also announced that a new IT invoice will be filed in Parliament next week. These measures say tax experts, not only to reduce the effective tax paid by most, but the next IT invoice will reduce the complications of common taxpayers.
According to tax expert Ved Jain, this decision should further accelerate the migration of salaried taxpayers to the new regime. “The number of people who deposit income tax should reach 10 crores of 8.5 crushes. Although the number of real taxpayers can remain lower over the next 2 to 3 years, this number will also increase “as economic prosperity increases people’s income levels, he says that the TADAY TADAY TODAY TADAY TADAY TADAYING TODAYING.
“Such tax relief was not granted earlier in any budget. This has been possible due to the unprecedented increase in personal tax collection in recent years, “added Jain, who has almost 40 years of experience in the field.
Rakesh Nangia, founder and managing partner at Nangia & Co, said that in India, currently on taxpayers of 8.5 crores, some 5.5 crosses or 65% do not really pay tax, but only produce declarations. According to him, economic growth and, consequently, the increase in income levels in recent years have led to the expansion of taxpayers with intermediate income.
However, the reduction in complications of fiscal compliance by reducing the details required during various types of tax declarations in the need of the hour, explains Nangia. “Today, there are 298 sections of the existing IT law and many sub-sections. A new computer law will facilitate the rules, ”he says.
Jain agrees. “The current act consists of 800 pages. Given the fact that the FM said today that it was aimed at reducing the size by half, we expect the new act to understand some 400 pages, “he said.
Pratik Jain, partner, PWC India, provides that the government introduces certain tangible methods to reduce disputes or tax disputes in the new law. “While the TPS collection may have decreased a little in the last 5 to 6 months compared to what the government expected it to be”, a renewal of economic activities will help it Achieving 14.5% growth in tax collection in the next financial year, he explains.