Daijiworld Media Network- New Delhi

New Delhi, Jan 9: As India approaches the Union Budget for 2025, there is growing anticipation regarding potential income tax reforms aimed at stimulating economic growth and providing relief to taxpayers. Key proposals under consideration include:

1. Reduction in Income Tax Rates: There is increasing pressure on Finance Minister Nirmala Sitharaman to lower income tax rates for individuals earning up to ?15 lakh annually. This initiative seeks to boost consumption and alleviate the financial burden on the middle class, which has been affected by inflation. The government aims to balance fiscal prudence with economic growth in the upcoming budget.

Economic Times

2. Overhaul of Income Tax Filing System: The government plans to revamp the income tax filing process to simplify compliance and reduce disputes. This overhaul is expected to address approximately $120 billion in tax disputes and will be open for public consultation.

Upstox

3. Special Tax Regime for Firms: The Institute of Chartered Accountants of India (ICAI) has proposed the introduction of a special tax regime for firms. This proposal aims to simplify taxation for businesses and reduce compliance burdens, thereby fostering a more conducive environment for business growth.

CFO Economic times

 These proposed measures reflect the government's commitment to reforming the tax system to enhance economic growth and provide relief to taxpayers. The final decisions will be revealed in the Union Budget 2025, which is eagerly awaited by both individuals and businesses across the country.