Income tax cut: As many as 57% of individual taxpayers want taxes to be lowered in the upcoming Budget, Grant Thornton Bharat’s pre-budget survey said on Wednesday (January 22, 2025).
The survey said although 72% of individual taxpayers have opted for a new income tax regime, a majority (63%) of taxpayers still seek an increase in incentives under the old tax regime.
To further enhance the appeal of the new tax regime, about 46% of respondents advocate for lowering tax rates, while 26% believe exemption limits can be increased.
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Grant Thornton Bharat’s pre-budget survey had over 500 respondents. The survey results reveal that individual taxpayers seek relief on the personal tax front to increase their disposable income.
A majority of respondents, 57%, want lower income tax rates, while 25% advocate for higher exemption limits in the 2025-26 Budget to be presented on February 1.
The majority of respondents, 53%, are advocating for the government to allow the set-off of house property losses under the new tax regime, the survey said.
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Around 47% desire a hike in the set-off limit or removal of the ₹2 lakh limit altogether under the old regime.
These changes would provide greater flexibility in offsetting losses, boost investment in real estate, and enable taxpayers to fulfil their aspirations to secure a reasonable residential accommodation.
Grant Thornton Bharat, Partner, Akhil Chandna said an increase in NPS tax deduction limits and more flexible NPS withdrawal rules would certainly promote retirement savings in the hands of taxpayers.
“Further, to promote a greener environment through the use of electric vehicles (EV), clarity is expected from the government on perquisite taxation rules for EV usage, and the deduction for the purchase of EVs should be reinstated under the law,” Mr. Chandna said.
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