Income Tax Budget 2025 Expectations Live: Income tax slab changes in new and old tax regime, increasing limits of standard deductions, exemptions, other measures; what can Indians expect from Budget 2025-26?

According to Sidhharrth S Kumaar, Founder, NumroVani, “This is high time for the government to create exclusions for preventive and proactive wellness measures as well. The current figure of Rs 5,000 for preventive tests is not sufficient and excludes many preventive measures as well. Furthermore, families are more financially burdened by rising healthcare expenses, so it is essential to review the limits under Section 80D.

“Given the rising expense of medical treatments as well as health insurance premiums, deductions of up to Rs 25,000 for individuals and Rs 50,000 for elderly citizens now fall short. Raising these restrictions to Rs 75,000 and Rs 1,50,000, respectively, will fit the reality of today and encourage more people to purchase thorough health insurance coverage,” he adds.

Regarding life insurance, the current deduction limit found under Section 80C stays at Rs 1.5 lakh. “This umbrella limit leaves little space for significant tax benefits on life insurance premiums since it covers many other investment choices. A separate, higher ceiling for life insurance is expected to inspire people to give their family’s financial future top priority over other tax-saving tools.

On the other hand, increasing the Section 80C ceiling generally to Rs 2.5 lakh will help taxpayers and encourage better financial
planning. Changing tax rates to reflect inflation could also help to complement these policies by ensuring taxpayers have more discretionary income to commit to other necessary financial protections, including insurance”, adds Kumaar