Budget 2025: A Game Changer for Taxpayers?

The Union Budget 2025 brings significant income tax reforms, aimed at boosting the middle class’s disposable income and driving economic growth. Here are the key takeaways:

? Higher Tax Exemption Limit

• Income up to ?12 lakh is now tax-free under the new tax regime (up from ?7 lakh).
• Standard deduction increased to ?75,000, making incomes up to ?12.75 lakh tax-free.

? Revised Tax Slabs for Higher Incomes

• ?12.75L – ?16L → 15%
• ?16L – ?20L → 20%
• ?20L – ?24L → 25%
• ?24L+ → 30%

? TDS & TCS Relaxations

• Senior citizens: TDS limit on interest raised from ?50,000 to ?1 lakh.
• Renters & landlords: TDS on rent increased from ?2.4 lakh to ?6 lakh.

? Extended Time for Updated Returns

• Taxpayers now have 4 years instead of 2 to file updated returns.

? Tax-Free Withdrawals from National Savings Scheme

• Effective for withdrawals made on or after August 29, 2024.

What This Means for You

?? More disposable income = Increased spending & investment. ?? Middle-class relief while balancing fiscal growth. ?? Encouragement for savings & long-term investments.

The big question: Will these changes be enough to drive economic momentum? ?? Share your thoughts in the comments! ??

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