Budget 2025 : The Finance Minister may consider the possibility of giving income tax relief to the employed people in the upcoming budget. According to information received from sources, efforts can be made to make the new tax regime more attractive, in which tax exemption can be given to those earning up to ₹ 5 lakh. Apart from this, the limit of standard deduction is also expected to be increased to more than ₹ 50,000. This step can provide relief to the employed people.

Income tax exemption: There may be a change in the new tax regime

Some announcements may be made in the budget to promote the new tax regime. Sources say that the government does not want to miss any opportunity to provide relief to the employed people and income tax reforms can be made to encourage the new tax policy. A tax exemption is being considered for those earning up to ₹ 5 lakh, which can greatly benefit the employed class.

The focus will be on capex in the budget

The budget is also expected to maintain focus on capex (capital expenditure). According to sources, there will be no major change in the capex target, and the ₹11.11 lakh crore announced in the interim budget may be retained in Budget 2025. The government is likely to spend more in sectors like road transport, highways, and railways. Along with this, spending can also be promoted in sectors like agriculture, housing, and rural development.

Reform in NPS: Possibility of a hybrid scheme

The roadmap for reform in the New Pension Scheme (NPS) may be revealed in the budget. Guaranteed pension can be provided in the hybrid scheme suggested by the Pension Reform Committee. Under this scheme, it is proposed to provide 50% guaranteed pension, which will include annuity and top up components. This hybrid pension scheme has been implemented in Andhra Pradesh, and now it is being considered to implement it in other states as well.