As Finance Minister Nirmala Sitharaman gears up to present her second full-fledged budget under the Modi 3.0 regime on February 1, taxpayers are eagerly awaiting significant reforms in personal taxation. Amid economic challenges, expectations are high for a revamped Direct Tax Code 2025, aimed at simplifying tax rates, eliminating outdated provisions, and easing compliance.
A major demand is the hike in the basic exemption limit to ₹5 lakh under both tax regimes, offering much-needed relief to middle-income groups. Revisions in income tax slabs and an increased standard deduction are also anticipated. Additionally, taxpayers hope for enhanced deductions under Section 80C, which has remained unchanged since 2014.
With rising healthcare costs, better tax relief for medical expenses is another key expectation. Overall, taxpayers seek a fairer, more efficient tax system that promotes savings, boosts disposable income, and strengthens India’s economic resilience.
