Budget 2025 : Finance Minister Nirmala Sitharaman will present the general budget on February 1, 2025. Experts and people from different sectors are placing their demands before the government regarding this budget.
Former Infosys CFO Mohandas Pai has also appealed to Prime Minister Narendra Modi and the Finance Minister to provide relief to the middle class. He has demanded changes in the tax slab and reduction of the increasing burden on taxpayers.
Demand for change in tax slab
Mohandas Pai says that the current tax slab is becoming a burden on the middle class. He has suggested that it needs to be reduced and adjusted. He has given some advice regarding this.
There should be no tax on income up to Rs 5 lakh.
- 10% tax on income up to Rs 5-10 lakh.
- 20% tax on income up to Rs 10-20 lakh.
- 30% tax on income above Rs 20 lakh.
- Surcharge on income above Rs 50 lakh.
Apart from this, it has been said to give exemption on income up to Rs 7.5 lakh to citizens above 60 years of age and Rs 10 lakh to citizens above 70 years of age.
Tax burden on the middle class
Mohandas Pai says that the middle class has the highest tax burden. Personal tax collection has increased by 114% in the last three years, but no relief has been given to the income and savings of the middle class. After inflation, rising school-college fees and essential expenses, the middle class does not have money left for other expenses.
Demand for relief on housing loan
He said that the deduction on housing loan benefits only those people who take the loan. This service is available to only 1.2 crore out of 3.5 crore taxpayers. He suggested that such schemes should be brought in the budget so that the middle class has more money to spend.
Tax disputes should be resolved
Mohandas Pai also demanded an end to tax disputes. He said that the disputed tax amount was Rs 4.5 lakh crore in 2014, which has increased to Rs 12.5 lakh crore by 2025. This is the failure of the Income Tax Department and the government. He appealed to declare 2025-26 as the tax dispute resolution year.
The middle class should not be ignored
He said that the government spends more than Rs 9 lakh crore on subsidies for the poor section, but the problems of the middle class are not paid attention to. He stressed the need to provide relief to the middle class and remove their resentment. The middle class has a lot of expectations from Budget 2025. Now it remains to be seen what steps the government takes for the middle class in this budget and how much it solves their problems.
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