Finance Minister Nirmala Sitharaman presented the Union Budget of 2025 before the parliament today at 11 pm. With regard to the amendment of direct taxes, the FM has proposed an increase in the limits on the income of the employees to calculate perquisites. It is to be noted the provisions of Section 17 of the Income Tax Act are proposed to be amended so that the power to prescribe rules may be obtained to increase these limits.
Section 17 of the Income Tax Act, 1961, defines ‘perquisite’ and ‘profits in lieu of salary.’. The minister, in her speech, the FM strongly said that the budget aims to enhance the spending power of India’s middle class.
Perquisites refer to non-cash benefits provided by employers, which are subject to taxation. With this amendment, the government seeks to enhance the exemptions available to employees by raising the threshold for perquisite valuation. This change will allow employees to receive more in benefits without triggering a higher tax liability. By increasing these limits, the government aims to adjust the tax burden in line with inflation and evolving compensation structures.
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This is the eighth time the FM has presented her budget, which is indeed a record for Indian FM. It is a much-highlighted fact that flexibility in policymaking is the need of the hour. Taxation has been seen as the main focus of the 2025 budget landscape.
According to the FM, with the first quarter of the 21st century getting over, the Viksit Bhart, scheme is marching forward confidently. In order to enhance the growth of the Viksit Bharat, the FM has proposed to focus on 6 sectors, with taxation given due importance.
The main focus is being emphasised on taxational reforms. The major focus is on simplifying the tax structure to enhance compliance and reduce litigation. The minister also said that she will be presenting the new Income Tax Bill next week.
[BREAKING] No Income Tax up to Rs. 12 Lakh Income, proposes FM during Budget 2025 Read More: https://www.taxscan.in/breaking-no-income-tax-upto-rs-lakh-income-proposes-fm-during-budget-2025/485573/
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