Govt may reduce Income Tax in Budget 2025; Taxpayers Earning Up To Rs.15 Lakh may Benefit:

Govt may reduce Income Tax in Budget 2025; Taxpayers Earning Up To Rs.15 Lakh may Benefit The central government is expected to reduce income tax for individuals earning up to Rs.15 lakh per year in the upcoming Budget 2025-26, according to a report citing two government sources. The move aims to promote economic consumption in the face of decreasing development. "The sources, who did not want to be identified because they were not permitted to speak to the media, said they had not determined the size of any cuts. A decision will be made closer to the budget on February 1", said the media citing the sources. Prominent economists have also advised Prime Minister Narendra Modi to lower income tax rates to reduce the burden on citizens. PM Modi met with top economists and sectoral specialists on Tuesday at NITI Aayog to solicit their feedback and suggestions for the upcoming Budget. During the meeting, economists and sectoral specialists reportedly encouraged the government to reduce income taxes, rationalise customs tariffs, and include measures to support exports in the upcoming budget. Union Finance Minister Nirmala Sitharaman is set to present the 2025-26 Budget to the Lok Sabha on February 1, 2025. FM Nirmala Sitharaman proposed a comprehensive revision of the Income Tax Act in her last Budget 2024-25, released in July. Following this, a review committee was formed, led by Chief Commissioner of Income Tax V K Gupta. The panel is anticipated to submit its report before the Budget 2025-26. But, according to a report quoting an official, "The new I-T Act, unlikely to be presented in the upcoming Budget Session, will take more than a year to come into effect." "It's likely to take more than a year. Systems must adjust to the changes. Because it will be a new Act, it will be much more complicated. All rules and new forms must be enabled, tested, and system-integrated, which will take time," a senior government official explained.