Budget 2025: Will FM Sitharaman raise tax-free income, tax exempt income threshold to Rs 10 lakh? 

The Union Budget for the year 2025 is scheduled to be presented by Finance Minister Nirmala Sitharaman on February 1, 2025. The middle class is anticipating the Narendra Modi government to offer relief in income tax. 

Various proposals have been presented by organisations linked to the Rashtriya Swayamsevak Sangh (RSS) during pre-budget discussions with Finance Minister Sitharaman. These include increasing the tax-free income threshold to Rs 10 lakh, introducing a stimulus package specific to agriculture, extending the number of work days under MGNREGA to 200, expediting GST refunds, and developing a comprehensive manufacturing strategy to address Chinese imports.

Representatives from the Bharatiya Mazdoor Sangh (BMS), led by Pawan Kumar, shared their recommendations with Sitharaman on Monday.

“Raise income threshold for income tax to 10 lakhs with exemptions existing as of now. Constitute the 8th Pay Commission immediately. Pensioners must be made exempt from paying tax on pensions,” the BMS said in a statement,

Other demands

The BMS proposed an extension of the MGNREGA program to guarantee 200 workdays per family each year. They also recommended a specialized assistance program for industries such as agriculture, plantation, beedi, and fisheries. The organization called for the implementation of the 8th Pay Commission, tax exemption up to Rs 10 lakh, and a preference for OPS over NPS and UPS.

Furthermore, they suggested increasing the gratuity calculation period to 30 days per year from 15 days and eliminating tax obligations for pensioners.

The union also urged the finance ministry to consider raising the minimum pensions for EPS-95 pensioners to Rs 5000 initially, followed by 50% of the minimum wages set by the government, with a linkage to Variable Dearness Allowance (VDA). 

They have also suggested extending the Ayushman Bharat scheme to EPS-95 pensioners and providing old age pensions to all individuals. Additionally, the organisation has requested adequate funding for various industrial boards like the beedi workers welfare board and the contract labour board, which were previously financed through a cess before the implementation of the GST regime.