Budget 2025 aims to unlock India’s potential in its journey to become a developed nation by 2047. Over the years, the Government has introduced several reforms for ease of doing business and reducing compliances, such as faceless assessment, taxpayers’ charter, faster processing of returns, and Vivad se Vishwas scheme for dispute settlement. Continuing with these efforts, a new direct tax bill is proposed to provide tax certainty, simplification and reduce tax litigation.
Of course, what has stolen the limelight is the relief in the tax slabs which has overshadowed all the other announcements. This was a long pending ask of the middle class and the enhancement of tax exemption limits will promote more liquidity, boosting household consumption, savings, investment and uplift overall sentiment of the middle class.