For many individuals, the budget’s tax implications are the priority, with hopes for reduced taxes or added exemptions. Notably, while 10 crore Indians file tax returns, 7 crore don’t pay taxes due to rebates, leaving only 3 crore actual income taxpayers, with 95% being salaried individuals.

The nation is surrounded by the debate that whether there should be just one, unified income tax regime in the country. In an exclusive interview with News24, former finance secretary and 1983-batch IAS officer, Subhash Chandra Garg said that the finance minister should consider merging the two existing tax systems into a single, unified system.

He added, “The finance minister (Nirmala Sitharaman) should consider merging the two existing tax systems into a single, unified system.” “Having two tax slabs creates unnecessary complexity, leading to confusion,” said Garg. “The old tax scheme remains attractive due to exemptions that offer significant savings, such as deductions on housing loan interest, which can be substantial, especially for large loans. Therefore, the two tax schemes should be merged, retaining beneficial exemptions, to create a unified and simplified system,” he said.

Budget 2025

Union Finance Minister Nirmala Sitharamana is set to present the union budget in the Parliament on February 1, 2025. With this, she will become the first ever finance minister of the country to present the Union Budget for the 8th consecutive time. While, there are so many hopes from the upcoming budget, the focus on the issues related to income tax remains primary.