Budget 2025 India Expectations Live Updates: Union Finance Minister Nirmala Sitharaman is set to present the Union Budget for 2025-26 on Saturday, February 1, 2025, at 11 am in Parliament. This will mark her eighth consecutive budget presentation. Many experts and taxpayers are hopeful for significant changes to the income tax structure. Among the key expectations are adjustments to income tax slabs in the new tax regime, increased tax benefits in the old regime, and hikes in various exemptions and deductions. Other top demands include the introduction of a voluntary NPS contribution deduction in the new regime, higher deductions for health and life insurance premiums, and for home loans.

What are taxpayers hoping for in the Union Budget 2025-26?

One major expectation is an increase in the current standard deduction limits. The old tax regime offers a fixed standard deduction of Rs 50,000, while the new tax regime allows Rs 75,000, which was raised from Rs 50,000 in Budget 2024. Taxpayers are also hoping for simplification of the long-term capital gains tax (LTCG) and short-term capital gains tax (STCG), as well as the reintroduction of the indexation benefit for LTCG on debt mutual funds and real estate. However, recent reports suggest that no significant changes in these taxation areas are expected, as major provisions related to LTCG and STCG were already introduced in the interim Budget 2024.

In the previous budget, the government outlined plans for a comprehensive overhaul and simplification of the 63-year-old Income Tax (I-T) Act, with the aim of making it more understandable for taxpayers and reducing litigation. It is anticipated that FM Sitharaman may introduce the Direct Tax Code (DTC) during this year’s budget session, which runs from January 31 to April 4, 2025.