Budget 2025 Report : The tax exemption limit has been increased to Rs 12 lakh in the Budget 2025-26 and the change in tax rates will bring about Rs 1 lakh crore into the pockets of the people. He will spend this amount on his needs or other works, which will increase the demand of Rs 3.3 lakh crore. This will accelerate the spinning cycle of the slower economy and help the country achieve an economic growth rate of eight per cent.
This will save millions
- To fulfil the dream of a developed India by 2047, it is essential that the economy grows at a rate of eight percent for at least a decade. According to the SBI report, the new tax structure will benefit about 5.65 crore taxpayers who fall in slabs of income of four lakh and above.
- Those who earn between eight lakhs to 12 lakhs annually will benefit the most from this change.
- SBI estimates that consumption will increase significantly due to tax savings. People will have extra money to spend. People will buy things like houses, cars, TVs, refrigerators. This will increase demand.
The economy will be strong
Now companies will make new products. With increasing demand, companies will expand the capacity of their plants. It will also fuel private investment. People will get jobs. New people will start earning. It will accelerate the demand and consumption cycle and strengthen the economy. Private investment figures have been weak during the last few years. The corporate sector is also being criticised for the fact that the private sector is not investing.
If the savings increase, then the cost will increase
At the same time, the corporate sector argues that demand is weak. How to invest in such a situation? Chartered accountant Sushal Singh says the aim of the tax cut is to bring more money into the pockets of taxpayers, especially the salaried and small traders. When taxpayers save on taxes, they are more likely to spend that money on goods, services, and housing.
Due to this, the time for filing returns has been extended
The report said that the central government has extended the deadline for filing updated income tax returns (ITRUs) from 24 months to 48 months. The change aims to give taxpayers more time to voluntarily update income statements and pay additional outstanding tax.
Finance Minister Nirmala Sitharaman had said in her budget speech that around 90 lakh taxpayers have voluntarily updated their income by paying additional taxes. According to the report, 78 per cent of the returns filed in the individual income tax category are in the new tax system. The budget has given a major relief on the income tax front in the new system.