Budget 2025: Key Expectations for Salaried Employees
Note to: Clients of Yudhajit Financial Services
From: Yudhajit Baul
Date: 31/01/2025
Re: Budget 2025: Key Expectations for Salaried Employees
When it comes to recall India's Tax paying population, salaried employees holds a major part in it. Looking forward to a significant relief in budget 2025, their key expectation includes:
1. Revision in Tax Slabs: Employees do expect reduced tax rates and an increase in exemption up to 5 lakhs, evolving as an employee friendly one.
2. Standard Deduction Hike: Being at ₹50,000, a hope for an increase to ₹75,000 or ₹1 lakh remains constant.
3. Home Loan Interest Relief: Homeowners might be relieved and encouraged if the deduction under section 24(b) increases from ₹2 lakh to ₹3 or 4 lakh.
4. Higher Investment Deduction:
We can expect:
● 80C limit rise to ₹2-2.5 lakh
● 80D (health insurance) deduction increase to ₹50,000 (individual) and ₹1 lakh (seniors)
● NPS additional deduction up to ₹1 lakh
5. Work-from-home Allowance: A tax-free allowance of ₹50,000 can be expected for work-from-home expenses.
6. ESOP & RSU Tax Relief: Employees might get tax deferral until share sale.
Hoping for the best. Budget 2025 could bring much-needed tax relief, boosting disposable income and savings. Let's see if the government meets these expectations or not.