{"id":225914,"date":"2025-01-28T07:36:07","date_gmt":"2025-01-28T07:36:07","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/01\/28\/budget-2025-income-tax-new-versus-old-regime-top-7-expectations-of-taxpayers-from-fm-sitharaman-the-times-of-india\/"},"modified":"2025-01-28T07:36:07","modified_gmt":"2025-01-28T07:36:07","slug":"budget-2025-income-tax-new-versus-old-regime-top-7-expectations-of-taxpayers-from-fm-sitharaman-the-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/01\/28\/budget-2025-income-tax-new-versus-old-regime-top-7-expectations-of-taxpayers-from-fm-sitharaman-the-times-of-india\/","title":{"rendered":"Budget 2025 income tax new versus old regime: Top 7 expectations of taxpayers from FM Sitharaman – The Times of India"},"content":{"rendered":"
\"Budget<\/div>


\n<\/p>\n

\n
\n
\n
\n
\n
\n
\n
<\/div>\n<\/div>\n<\/div>\n
Taxpayers who continue to favor the traditional structure are still hopeful for adjustments which are at least reflective of the rising inflation and costs of living in India. <\/span><\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n

By Ravi Jain<\/span>
Budget 2025 income tax expectations: The announcement of new income tax regime in India\u2019s Union Budget 2020 was a progressive step by the Hon\u2019ble Finance Minister Sitharaman towards simplification and moving away from administratively heavy tax exemption regime. This paved the way for taxpayers to pay income tax at a reduced slab rate in exchange for most of the exemptions and deductions otherwise available under the old income tax regime. This trade-off was intended to provide a transparent and straightforward tax calculation mechanism as an alternative to the traditional tax computation mechanism loaded with several internal tax exemptions calculations and therefore the complexities also leading to litigation.
For the initial few years there was not much uptake of the new income tax regime amongst the taxpayers. This resulted in another amendment of making the new income tax regime as the \u2018default\u2019 tax regime effective from the Financial Year (FY) 2023-24..
As per statistics released by PIB, approximately 72% of the taxpayers have opted for the new income tax regime i.e., 5.27 crore tax returns were filed for Assessment Year (AY) 2024-25 under the new income tax regime out of the total 7.28 crore. The enhancement of Standard Deduction against salary income from Rs 50,000 to Rs 75,000 from FY 2023-24, has further propelled this shift. In contrast, the old income tax regime remained popular with the remaining 28% who continued to benefit from various exemptions\/ deductions towards rental payments, interest\/ principal payment towards housing loan, Mediclaim, life insurance premium, retirement corpus etc.
Also Read | Budget 2025 new vs old income tax regime: Will FM Sitharaman do away with the old regime soon? Experts weigh in<\/a>
The threshold limits for claiming exemption\/ deductions under the old income tax regime has remained largely unchanged over the last decade, indicating a natural sunset for the old regime. Taxpayers who continue to favor the traditional structure are still hopeful for adjustments which are at least reflective of the rising inflation and costs of living in India. Their expectations from the FM are the following:<\/p>\n

\n