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Every Budget season, the most common question is whether it will provide any benefits for salaried individuals. As Finance Minister Nirmala Sitharaman prepares to present Budget 2025-26 on February 1, the salaried class is again hopeful that the government will reduce their financial burden. Economists have suggested that the government should offer a higher tax exemption limit and an increased standard deduction under the new tax regime, which would benefit many taxpayers. In the last Budget, the standard deduction was raised to Rs 75,000 from Rs 50,000, and the exemption limit stands at Rs 3 lakh under the new regime. Economists also hinted at tax benefits for electric vehicles, support for the housing sector, and easing the purchase and sale of real estate by Non-Residential Indians (NRIs). Deepika Mathur, Director at Deloitte India, stated that any relief for the salaried class would likely benefit only those under the new tax regime, and no changes are expected in the old tax regime. However, she expects a further increase in the standard deduction under the new tax regime.

The text suggests that the new tax regime simplifies filing but lacks deductions, while the old regime offers more deductions but higher rates. Consumers are hoping for measures that increase the purchasing power of the middle class, as salaried individuals are disproportionately taxed compared to other income sources. Additionally, the government should address the challenge of facilitating tax payments from overseas bank accounts. Many individuals living abroad, including foreign citizens and Non-Resident Indians, who have previously worked or have investment income in India, can make tax payments only using an Indian bank account. The government is eager to receive tax payments without encountering many compliance problems. Hence, it should not matter whether the payment is made from an Indian bank account or an overseas account. However, it remains to be seen whether the upcoming budget on February 1 will significantly alter the tax system in India or if the middle class will desire further changes.