BUDGET 2025: Now, all sections are eyeing the budget for February 1, 2025. From farmers to taxpayers, everyone has high hopes. Do you know that everyone’s eyes will be on the speech of Finance Minister Nirmala Sitharaman, who can make a big announcement? Nirmala Sitharaman can announce the Direct Tax Code in the General Budget 2025-26.
This new law will replace the Income Tax Department Act of 1961. According to tax experts, this code will make taxes easier. Along with this, legal disputes will be reduced. If the government announces this, the process will become easier for taxpayers. The government can decide to make the old tax regime.
Will the central government end the tax regime?
Did you know that the central government can decide to end the old tax regime gradually?? Currently, taxpayers also have the option to choose between the old and new tax systems, but this option will end soon.
According to the central government’s data, about 72% of the income taxpayers for the financial year 2023-24 have adopted the new tax regime. Experts believe the government will focus on new tax regimes instead of the old ones. In the future, the old tax regime can be removed.
Middle-class middle-aged to get significant benefits.
A big announcement is expected for the middle class. Under the Direct Ta, Middle-class taxpayers, especially those with an income of Rs 5 lakh to Rs 15 lakh per year, are expected to get significant relief. Work can be done to simplify and integrate the tax structure.
According to DTC, the resident and non-resident categories will be simplified. At present, categories like R-OR and R-NOR can be removed. The government also seems to be planning to phase out exemptions and deductions. Many middle-class taxpayers and old tax rules are likely to change.