Budget 2025 Expectations Live Updates: Will FM Nirmala Sitharaman bring income tax cheer to common man?

Budget 2025 Income Expectations Live: Why NPS needs to be made more attractive Budget 2025 NPS expectations: Finance Minister Nirmala Sitharaman should look to make the National Pension System (NPS) more attractive for investors, believe financial experts. There is expectation among financial experts that in the Union Budget 2025 speech, FM Sitharaman will announce some changes in NPS. According to Rajani Tandale, Senior Vice President, Mutual Fund, 1 Finance, India confronts a significant retirement challenge, as many individuals lack adequate financial preparation for their later years. Budget 2025 Expectations Live: Enable priority sector lending status for fintechs “Considering the financial inclusion role of fintechs, the government could look at incentivising the segment by enabling priority sector lending status, which could eventually lead to lower interest rates and higher funds. We should also look for interchange pricing for UPI transactions beyond a higher threshold, based on annual revenues of the merchants, to ensure fintechs can avail higher liquidity to invest in product development and technology upgrades. Thirdly, riding on the success of technology hubs, the government could look at incentivising public-private partnerships and new investments into setting up of fintech hubs,” says Rajesh Londhe, Co-founder and Head of Payments, Phi Commerce. Budget 2025 Expectations Live: Expect continued focus on semiconductors “With the success of last year’s initiatives in the semiconductor and manufacturing sectors, we expect the upcoming Union Budget to further accelerate growth and innovation. The Indian government allocated ₹6,903 crore to the semiconductor industry in the 2024–25 Union Budget, reflecting a 52% increase from the previous year. This significant rise demonstrates the government’s commitment to reducing India’s reliance on imported semiconductors, creating high-tech jobs, and enhancing global competitiveness. We anticipate a continued focus on strengthening the semiconductor and display manufacturing sectors. This includes expanding the establishment of semiconductor fabs, modernizing infrastructure, and bolstering India’s position in global supply chains. Additionally, tax reductions on electronic components and raw materials, along with exemptions on critical minerals such as lithium, copper, and rare earth elements, are expected to further boost India’s competitiveness in the global market. The government’s emphasis on advancing technology, creating high-tech jobs, and solidifying India’s role in global supply chains will be pivotal in establishing the country as a global hub for semiconductor manufacturing. These efforts are expected to provide sustained economic benefits and position India as a leader in the rapidly evolving tech industry,” says Avneet Singh Marwah, CEO of Super Plastronics Pvt Ltd. Budget 2025 Expectations Live: Consistent TCS rate of 0.5% should be applied to forex availed for education loans “Currently, 0.5% TCS is levied on foreign exchange transactions exceeding Rs 7 lakhs applicable if the education loan is availed from a commercial bank or section 80E recognised entity. Our recommendation is that the taxation rate must be rationalised to establish uniformity in the industry. A consistent TCS rate of 0.5% should be applied to forex availed if education loans availed from any NBFC or bank. This will create fairness and bring clarity for all stakeholders,” says Pavan Kavad, Managing Director, Prithvi Exchange. Budget 2025 Expectations Live: Allow FinTech start-ups to access more credit “India's startup sector is one of the world's largest sectors, projected to witness $15 billion of funding in 2025. In my view, budget 2025 needs to capture some key points so that rapid startup and startup funding momentum continues. First, tax breaks on early-stage investments and Angel Tax-related exemptions need to be allocated for further capital inflows towards startup companies. The current tax regime makes disinvestment in innovation rather unattractive and necessitates some restructuring. Bringing down capital gains taxes for venture capital and private equity players would push India as a significant market destination for such investors into sectors like financial services and healthcare, among others. We request the government to make provisions under which FinTech start-ups will be able to access more credit through guarantees and less complicated collateral requirements, and investments in digital infrastructure should reach Tier 2 and Tier 3 cities first, as they are the next phase in FinTech progress. Lastly, the regulatory sandboxes, especially in the Fintech space, need to see their capabilities and coverage expand, so that emerging technologies can be accelerated for testing and launching various financial services. Speedier approval processes will create a more dynamic FinTech ecosystem. The 2025 budget should focus on making India a stronger economy, for which start-ups and PE/ VC environment comprise a significant pillar for growth. The government should focus on strengthening the funding ecosystem, so that start-ups get an involuntary boost and there is cumulative growth in the industry,” says Sahil Anand, Founder and Managing Partner of Cedar-IBSi Capital. Budget 2025 Expectations Live: Prioritize housing affordability in the upcoming Budget Budget 2025 housing sector expectations: "We are expecting the government to prioritize housing affordability in the upcoming Budget, helping more Indians realize their dream of homeownership,” says Atul Monga - CEO& Co-Founder, BASIC Home Loan. “One key reform should focus on enhancing tax benefits for home loan EMI payers. This could include raising the current Section 80C cap of ₹1.5 lakh for principal repayment and increasing the ₹2 lakh rebate on interest under Section 24(b); to reflect the rising property prices and inflation. GST adjustments on construction materials like cement, currently taxed at 28%, could reduce costs significantly, directly benefiting homebuyers. Additionally, green housing projects remain an untapped opportunity, constituting less than 10% of the market. A focused push, with subsidies and tax incentives, could propel their adoption and create a more sustainable housing ecosystem. These interventions, coupled with robust initiatives under schemes like PMAY, could help bridge the current housing deficit, which stands at 11.2 million units in urban areas. It’s time for bold, data-backed reforms to create a more accessible and future-ready housing market." Top Stories Right Now