The Indian government is set to introduce a new Direct Tax Code next week, aimed at simplifying tax laws and reducing legal disputes. Finance Minister Nirmala Sitharaman confirmed Today (Feb 1), while presenting the Union Budget 2025 that the new tax law will be “simple to understand” and could bring major changes, including scrapping financial years, taxing LIC policy income, and standardizing dividend and high-income tax rates. This move follows extensive public consultation and review by expert committees.
Finance Minister Nirmala Sitharaman will present her 8th consecutive Union Budget Today-February 1, 2025, at 11 a.m., moving closer to Morarji Desai’s record of 10 budgets. The budget is expected to boost economic growth, encourage spending, and control the fiscal deficit. As per the Economic Survey 2024-25, India’s GDP is projected to grow between 6.3% and 6.8% in 2025-26, slightly higher than this year’s 6.4% estimate.
Budget 2025 is expected to bring major changes, including lower taxes for those earning up to Rs 10 lakh annually, a push for affordable electric vehicles, and a fivefold increase in the minimum EPFO pension to Rs 5,000. With trade unions demanding an 8th Pay Commission and higher taxes on the super-rich, the budget aims to address economic slowdown and boost household savings.