Union Budget 2025 | Rationalisation of the income tax is long overdue: Rony Antony, Partner & Leader, Corporate Tax (South), Tax & Regulatory Services, BDO India

The Union Budget for the upcoming financial year is all set to be presented on February 1, 2025, by Finance Minister Nirmala Sitharaman. According to reports, the Narendra Modi government may consider slashing income tax for individuals earning up to Rs 15 lakhs per annum and extend the tax relief bracket in a bid to provide relief to the middle class and boost consumption.

Ahead of the Budget, Rony Antony, Partner & Leader, Corporate Tax (South), Tax & Regulatory Services, BDO India, said "The rationalisation of the income tax is long overdue. While some efforts were made in that direction with a proposed Direct Tax Code, not much has happened post-introduction of a draft. It appears that the thought process currently is to fix the issues within the current enactment rather than bring up a new one."

He added, "There are several areas in the current enactments that need a fix. But a few quick fixes that can help taxpayers is the rationalization of TDS obligations. Currently, there are multiple provisions in the TDS sections that are creating issues for taxpayers."

Antony further said, "Rationalisation of rates is one area that can help. Additionally, rationalisation of provisions to take care of litigious issues that have emerged could help taxpayers with certainty."

He continued, "Another area is to curb litigation on matters that have attained finality. With significant amounts stuck in litigation, this poses an issue for taxpayers who want certainty and the tax department that wants to collect taxes. The Department continues to litigate matters which have even attained finality at the Supreme Court. The government can think of issue-based guidelines to tax department which can curb the scourge of litigation."

Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.