Grant Thornton Bharat, Partner, Akhil Chandna said an increase in NPS tax deduction limits and more flexible NPS withdrawal rules would certainly promote retirement savings in the hands of taxpayers
New Delhi: As many as 57 per cent of individual taxpayers want taxes to be lowered in the upcoming Budget, Grant Thornton Bharat’s pre-budget survey said on Wednesday.
The survey said although 72 per cent of individual taxpayers have opted for a new income tax regime, a majority (63 per cent) of taxpayers still seek an increase in incentives under the old tax regime.
To further enhance the appeal of the new tax regime, about 46 per cent of respondents advocate for lowering tax rates, while 26 per cent believe exemption limits can be increased.
Grant Thornton Bharat’s pre-budget survey had over 500 respondents. The survey results reveal that individual taxpayers seek relief on the personal tax front to increase their disposable income.
A majority of respondents, 57 per cent, want lower income tax rates, while 25 per cent advocate for higher exemption limits in the 2025-26 Budget to be presented on February 1.
The majority of respondents, 53 per cent, are advocating for the government to allow the set-off of house property losses under the new tax regime, the survey said.
Around 47 per cent desire a hike in the set-off limit or removal of the Rs 2 lakh limit altogether under the old regime.
These changes would provide greater flexibility in offsetting losses, boost investment in real estate, and enable taxpayers to fulfil their aspirations to secure a reasonable residential accommodation.
Grant Thornton Bharat, Partner, Akhil Chandna said an increase in NPS tax deduction limits and more flexible NPS withdrawal rules would certainly promote retirement savings in the hands of taxpayers.
“Further, to promote a greener environment through the use of electric vehicles (EV), clarity is expected from the government on perquisite taxation rules for EV usage, and the deduction for the purchase of EVs should be reinstated under the law,” Chandna said.