Finance Minister Nirmala Sitharaman will present the Union Budget 2025-26. Key demands include tax relaxation, real estate incentives, healthcare cost cuts, startup support, and insurance reforms.
As Finance Minister Nirmala Sitharaman is set to present the Union Budget 2025-26 on Saturday, expectations are high across sectors of the economy and segments of the society. From the middle class to the corporates, everybody has a wishlist. This time, the expectations from Sitharaman are especially high as the Budget 2025 comes at a time when consumption in the country is subdued and the capital expenditure (capex) is at lower level. Here are the Budget 2025 expectations across the sectors:
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Income Tax & Middle Class
The most awaited announcement from FM Nirmala Sitharaman is relaxation on income tax for individuals, especially those earning up to Rs 15 lakh. According to reports, the finance minister might raise standard deduction limit from Rs 75,000 to Rs 1 lakh, apart from raising rebate under 87A to Rs 10 lakh and introducing various deductions under the new tax regime.
Economists and analysts have said the income tax relaxation will be a much-needed breather for the economy as it will push domestic consumption by raising disposable income of individuals.
Those those earning above Rs 15 lakh, the government might introduce a 25 per cent slab, according to the reports.
Currently, there is no 25 per cent income tax slab in India under either the old or new tax regimes. The income tax slabs for individuals under the new tax regime are: 0% for income up to Rs 3,00,000, 5% for income between Rs 3,00,001 and Rs 7,00,000, 10% for income between Rs 7,00,001 and Rs 10,00,000, 15% for income between Rs 10,00,001 and Rs 12,00,000, 20% for income between Rs 12,00,001 and Rs 15,00,000, and 30% for income above Rs 15,00,000.
The old tax regime has the following slabs: 0% for income up to Rs 2,50,000, 5% for income between Rs 2,50,001 and Rs 5,00,000, 20% for income between Rs 5,00,001 and Rs 10,00,000, and 30% for income above Rs 10,00,000.
Real Estate Sector
The realty developers throughout the country have highlighted several key demands, including the long-awaited grant of industry status, rationalisation of stamp duty, redefinition of affordable housing, incentives for green housing, and enhanced tax exemptions.
They also want Sitharaman to revise the affordable housing price limit in metro cities from Rs 45 lakh to Rs 65 lakh to allow a larger segment of buyers to access government incentives, thereby driving demand in this segment.
Healthcare Sector
Healthcare industry stakeholders have outlined expectations from reducing treatment costs and promoting infrastructure expansion to rationalising tax structures and fostering innovation, their recommendations reflect the urgent need for targeted policy interventions.
They want the government’s special focus on non-communicable diseases (NCDs), which have become a significant public health concern.
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Building on last year’s reduced customs duties on cancer medicines, they also expect extending these benefits to targeted therapy drugs and advanced cancer treatment equipment like radiotherapy machines and robotics, which currently attract customs duties of up to 37 per cent.
Startups’ Expectations
Startups are optimistic about continued government support for innovation and entrepreneurship, especially in sustainable and impact-driven sectors. They said initiatives like Startup India, Fund of Funds for Startups, and income tax exemptions have built a strong foundation, enabling startups to overcome challenges and tap into emerging opportunities.
They, however, said simplifying compliance and expanding access to capital for early-stage ventures will be critical to strengthening India’s position as a global innovation hub. The startups also expect fiscal measures and policies that encourage multiple forms of capital investments in startups that help enable R&D , technological self-reliance, and build stronger collaboration between startups, industry, and government.
Apart from this, large companies also faced subdued quarterly earning in the September 2024 quarter. Their numbers have also not painting a very rosy picture in the latest December 2024 quarter. So, there are also expectations from them to push industrial growth.
