New Delhi, January 27: Finance Minister Nirmala Sitharaman will present the Union Budget on Saturday, February 1. The Union Budget 2025 will be the first full Budget of the Narendra Modi government's third term. Although the budget will be presented on February 1, the budget session will start on January 31 with the tabling of the Economic Survey and conclude on Thursday, February 13.

The upcoming Union Budget will be Finance Minister Nirmala Sitharaman's eighth budget, which she will present in the Parliament, including two interim and six full budgets. As Nirmala Sitharaman gets ready to present the Union Budget, there are several expectations of the salaried employees from the Narendra Modi-led government. From relief in income tax to higher tax exemption limits, let's take a look at some of the expectations of salaries employees. Union Budget 2025–26: Income Tax Payers Want Finance Minister Nirmala Sitharaman To Cut Rates, Reveals Survey.

Higher Tax Exemption Limit

Salaried employees expect no changes to the old tax regime, as the government has placed emphasis on the adoption of the new tax regime. Under the new tax regime, the basic tax exemption limit is currently INR 3 lakh. Salaried employees hope that the limit will be raised to INR 5 lakh to provide more disposable income for individuals who can either spend or save, thus boosting the overall economy.

Increase in Rebate

Under the new tax regime, the full tax rebate is available for people with an income limit of INR 7 lakh. Salaried employees hope that the full rebate will be raised to INR 10 lakh when Finance Minister Nirmala Sitharaman presents the budget on February 1. An increased rebate will not only offer relief to middle-income taxpayers but also make it easier for them to manage their finances.

Increase in Standard Deduction

Salaries taxpayers are also expecting an increase in the standard deduction under the new regime from the current INR 75,000 to INR 1,00,000. This increase in the standard deduction will help salaried taxpayers flight combat inflation and help them address higher personal expenses incurred due to changes in work culture, including work-from-home hybrid work, etc. Budget 2025 Date, Time, Live Streaming: When and Where To Watch Finance Minister Nirmala Sitharaman Presenting Union Budget 2025-26 in Parliament.

Tax Rate Cut

Ahead of the Union Budget, it is learned that the NDA government is also considering cutting the income tax rate for individuals earning up to INR 15 lakh a year. This decision aims to provide relief to the middle class and boost consumption as the economy slows. If announced, the move could benefit hundreds of thousands of taxpayers burdened by high living costs.

The government has also been facing heat from the middle class over the rising number of high taxes. It is to be seen what tax relief measures Finance Minister Nirmala Sitharaman makes in her Union Budget presentation on February 1.

(The above story first appeared on LatestLY on Jan 27, 2025 09:12 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).