Finance Minister Nirmala Sitharaman will present her ninth consecutive budget in the Lok Sabha on February 1st. This year's budget is expected to include major changes to the customs duty structure, along the lines of GST, and several other reforms to boost the economy amidst global geopolitical uncertainty. The budget may also focus on reducing the debt-to-GDP ratio, as India's fiscal management is now shifting from simply managing deficits to reducing the debt burden. For individual taxpayers, who received significant relief last year with income tax exemptions up to ₹12 lakh and subsequent GST rate cuts, a further increase in the standard deduction is expected this time.
Expectations regarding the Income Tax Act
The industry expects the budget to provide clear rules and guidelines regarding the new and simplified Income Tax Act 2025, which is scheduled to come into effect from April 1st. Some new incentives may be offered to make the new tax regime more attractive, encouraging more people to switch from the old system. Additionally, the various categories and rates of TDS (Tax Deducted at Source) could be simplified and reduced.
Customs Duty Reforms
Reforms in the customs duty system may focus on reducing rates and simplifying procedures. A dispute resolution scheme may also be introduced to settle pending cases involving approximately ₹1.53 lakh crore. Budget allocation for the defense sector is likely to increase due to the prevailing global tensions. A new scheme for rural areas, under the 'Viksit Bharat – Employment and Livelihood Mission,' with participation from both the central and state governments, may also be included in the budget.
Announcement of the 8th Pay Commission
The announcement of the 8th Pay Commission for government employees is expected, which could be implemented from January 1, 2026. The share of taxes received by states may also increase as per the recommendations of the 16th Finance Commission. Special concessions are expected for the MSME sector and industries such as gems and jewelry, and leather. In addition, the budget may also allocate funds for the mining and processing of critical minerals such as lithium and cobalt.
Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
-
Strong mileage and low price! With over 800,000 CNG cars sold, ‘Ya’ cars became the top-5 best selling cars
-
Whether it’s the mountains or the sea, the pressure of travel will not lose the area of the skin! Here are some simple tips
-
Eating Makhana Tikki will reduce weight fast
-
Easy to make Tricolor Sandwich-Lossy on Commonwealth Day! Here is the recipe
-
Bring 16 snacks to the picnic, make these 5 delicious snacks your travel companion.
