Overview
- Finance Minister is scheduled to present the Union Budget on February 1, with observers expecting implementation clarity to take precedence over new rate reductions.
- For FY 2025–26, the new regime is the default for ITRs and belated returns can be filed only under it, while the old regime is increasingly viewed as a transitional option.
- Budget 2025’s revised slabs, higher standard deduction and an enhanced Section 87A rebate effectively eliminated tax for many salaried earners up to roughly Rs 12–12.75 lakh, benefiting middle‑income taxpayers most.
- Experts are urging targeted tweaks such as linking slabs to inflation, a modest rise in the standard deduction, and a review of caps on housing‑loan interest and Section 80C deductions.
- EY and other advisers call for detailed guidance for the new Act, simplification of TDS rates, targeted dispute‑resolution mechanisms, and manufacturing support including an extension of the 15% concessional corporate rate or accelerated depreciation.