Will the scope of tax free income be increased to Rs 10 lakh in the budget? Middle class raise expectations

New Delhi| The Union Budget 2025 is approaching. There is also increasing hope for important tax reforms and measures related to economic relief. Finance Minister Nirmala Sitharaman will budget on February 1, 2025. The middle class is expecting an increase in the tax-free income limit from this budget, among other proposals. Before the budget, many organizations have appealed to the government to take a decision in this regard. In such a situation, it would not be surprising if the government makes a big announcement related to this in the budget 2025.

What bold reforms did RSS-backed BMS appeal to push for?
Rashtriya Swayamsevak Sangh (RSS)-affiliated Bharatiya Majdoor Sangh (BMS) has demanded major changes during pre-budget discussions. The organization proposes to increase the tax-free income limit to Rs 10 lakh while retaining the existing exemptions. Additionally, the BMS urged the government to set up an 8th Pay Commission and exempt pensioners from income tax on pensions. Many other business organizations have also made such demands.

Will the government announce increasing the income tax limit in Budget 2025?
Experts hope that the government can make an announcement in Budget 2025 related to increasing the limit of tax free income. Other key demands include expanding the MNREGA program to provide 200 workdays per family per year, implementing a stimulus package for agriculture and allied industries, and speeding up GST refunds. BMS also stressed the need for a comprehensive manufacturing strategy to reduce dependence on Chinese imports.

What measures related to pensioners and labor welfare will be monitored?
BMS has advocated increasing the minimum pension for EPS-95 beneficiaries from Rs 1,000 to Rs 5,000, and linking it to Variable Dearness Allowance (VDA) in future with the government’s target of 50% of the minimum wage. He also suggested extending the Ayushman Bharat scheme to EPS-95 pensioners and introducing universal old age pension. Many recommendations have also been made to improve labor welfare. This includes increasing the calculation of gratuity to 30 days a year, funding industrial boards such as beedis and contract workers boards, and giving priority to the old pension scheme (OPS) over the new pension scheme (NPS).

Whether there will be relief from the government or not, the situation to be clear on 01 February
With just a few weeks left for the Union Budget to arrive, the middle class and employee groups are eagerly waiting for the government’s response to these bold proposals. If these measures are adopted, they can provide adequate financial relief to the people. These measures can strengthen India’s economic structure. The situation on whether Budget 2025 will meet these expectations will be clear only on 01 February 2025.