As Budget 2025 is approaching Grant Thornton Bharat conducted a survey to know what reforms and announcements the salaried class expects in terms of their personal tax. The survey collected information from individual taxpayers across the country. The survey revealed a concerted yearning for tax rate deduction, higher tax exemption limits and more.
A majority of respondents, 57 per cent, wanted lower tax rates, while 25 per cent advocated for higher exemption limits, the survey revealed.
Based on the latest data available, a significant number of taxpayers have switched to the simplified new personal (default) tax regime. In fact, currently, 72 per cent of taxpayers have opted for this, and only 28 per cent remained in the old tax regime,” the survey revealed.
“However, to further enhance the appeal of the new tax regime, about 46 per cent of respondents advocate for lowering tax rates, while 26 per cent believe exemption limits can be increased,” the report further elaborated.
The majority of respondents, 53 per cent, called for the government to allow the set-off of house property losses under the new tax regime. Around 47 per cent desire a hike in the set-off limit or removal of the INR 2 lakh limit altogether under the old regime, as per the survey findings.
About 32 per cent of the respondents desire a reduction in the additional tax applicable in case of updated tax returns, and 12 per cent would like an extension in the timeline provided for filing the revised Income Tax Returns (ITRs).
“53 per cent of taxpayers are calling for more flexible withdrawal rules and higher tax exemptions on premature withdrawals or annuity payouts under the National Pension Scheme (NPS),” as per the survey.
Additionally, Taxpayers also want the re-introduction of tax incentives to support the adoption of electric vehicles (EVs), the survey revealed.
Meanwhile, 46 per cent of respondents supported an increase in the deduction limit for dependents with disabilities, and 18 per cent advocated expanding the scope of recognized disabilities.
