Tax Revolution Ahead: Budget 2025 Set to Reshape Personal Finance Landscape

Finance Minister Nirmala Sitharaman is likely to introduce several key changes in tax brackets:

Raise the 20% tax bracket from ₹12-15 lakh to ₹12-18 lakh.

Potentially adjust the highest 30% tax rate to apply for income over ₹18 lakh.

Increase tax-free income limit to ₹5 lakh in the new tax regime.

Raise standard deduction from ₹75,000 to ₹1 lakh.

The proposed modifications aim to provide relief to middle-class taxpayers and boost private consumption. Most changes are expected in the new tax regime, which 72% of taxpayers have already adopted.

Source: New Indian Express and Times of India reports on Budget 2025 expectations