- Capital gains tax structure likely to remain unchanged, focus on simplification.
- Anticipated adjustments in income tax slabs, deductions, and exemptions.
- Calls for increased tax certainty and faster dispute resolution for foreign investors.
The Union Budget 2025 is set to emphasize simplifying the tax process while likely keeping the capital gains tax structure intact. Anticipated measures include adjustments to income tax slabs under the old and new tax regimes, higher standard deductions, and additional exemptions to encourage savings and boost disposable income.
Foreign investors are pushing for greater tax certainty and speedier resolution of pending appeals. Enhancing the Board for Advance Rulings’ authority to provide binding decisions could be a game-changer in attracting global investments.
Budget 2025: Simplified Tax Processes and Broader Reliefs
Despite calls for reform, structural changes to the capital gains tax regime are unlikely in the 2025 budget. Instead, the focus is expected to be on process efficiency and simplifying compliance requirements, easing the burden on taxpa.
Hopes are pinned on revised tax slabs, increased standard deductions, and more exemptions. Affordable housing is another area of focus, with potential incentives aimed at boosting the real estate sector and promoting first-time home ownership.
For foreign investors, demands include reinstating binding tax rulings and expediting dispute resolution mechanisms. The government may strengthen its tax appeal framework to enhance global confidence in India’s regulatory environment.
Income tax relief and targeted exemptions are seen as vital steps to revive domestic consumption. By providing more disposable income, the government aims to spur economic activity and address slowdown concerns.
Budget 2025 is poised to strike a balance between simplifying tax processes, meeting taxpayer expectations, and strengthening India’s appeal to global investors.
“Simplification of taxes is the single most powerful tool for economic growth.” — Arthur Laffer
