Union Budget 2025: Union Finance Minister Nirmala Sitharaman will likely present the budget for the financial year 2025-26, a day after the budget session of the parliament will commence on January 31. For the past few weeks, the Finance Minister has conducted several meetings with stakeholders of various sectors including experts and industry leaders from finance, healthcare, public unions, tech, infrastructure and others and sought their suggestions for the upcoming budget. 

Meanwhile, as the Union Budget 2025 approaches, industry leaders and tax experts are expressing their demand and expectations from the upcoming budget. 

Suresh Darak, Founder, of Bondbazaar, expects that the government will introduce a complete revision in the structure of personal income tax.

"Over the past few budgets, tax rates for various investment instruments and income streams have been gradually streamlined, reducing exceptions and differential treatments. This has brought several options, such as Fixed Deposits, Debt Mutual Funds and Bonds, onto a level playing field by taxing them similarly. This alignment eliminates arbitrage opportunities between instruments and fosters a more balanced investment landscape. Looking ahead to Budget 2025, we anticipate further progress in this direction, and possibly a complete revision in the structure of personal income tax. We may see a much simpler unified approach to taxation, spanning all asset classes in the coming years," said Suresh Darak.

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Vivek Jalan from Partner Tax Connect Advisory Services LLP demands an exemption of customs duty on imports of tech, machines and pieces of equipment

"Exemption of Customs duty on import of technology, machines, and equipment for manufacturing Li-Io Cells in India - With the Electric Vehicle Sector focus area of the Government, relief is expected for the manufacturing of EVs and parts of EVs, especially Lithium Ion Cells (batteries), which are the biggest component of EVs. It is understood that technology, machines, and equipment for manufacturing Li-Io Cells have to be sourced from out of India as of now as India does not have the requisite capabilities. Customs duty payment on these would lead to cost inefficiencies for Li-Io battery manufacturers in India," said Vivek.

"Industry as well as other Ministries have represented the MoF already regarding the exemption of Customs duty on the import of technology, machines, and equipment for manufacturing Li-Io Cells in India. This should get some consideration from the Government in the Union Budget 2025,"  he added.

Vivek Jalan also demands that the old regime of the income tax should be discontinued and the tax slab in the new income tax regime should be rationalised. 

"Scrapping of the Old Regime totally and rationalising the Income Tax slabs under the new regime – It is a fact that today under the new tax regime, Income Tax has become simpler. Further, an exemption of Rs.7 Lakhs means that taxpayers have to pay NIL tax on the same level of Income where they were earlier paying tax. Hence, the Government should consider and make the new regime the only regime as the Income Tax Act goes for a comprehensive review on 1st Feb 2025," said Vivek.

"However, they must also consider easing out the tax rate in the new regime considering the Cost of Inflation of approx. 6% pa and the impact on the present value of money," he added. 

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Note: The views of the experts or individuals shared in form of quotes are belonged to them only.