What the coming budget might mean for taxpayers

With less than a week left for the next #financialbudget (1st Feb), here are some potential changes and trends that might shape the upcoming financial year for taxpayers:
- No More #OldTaxRegime
The Old Tax Regime could soon be history. In the name of "simplifying compliance," we may be left with just the New Tax Regime.
Expect the FM to highlight stats like "90% of ITRs are now filed under the New Tax Regime," justifying its dominance and eliminating "confusion" caused by dual regimes.
- Sweeteners in the #NewTaxRegime
To soften the blow, the government might introduce additional benefits under the New Tax Regime, like enhancing NPS contribution. Tax slab tweaks could also be on the cards, especially in the lower-income brackets.
- #PPF: A Silent Goodbye?
The Public Provident Fund (PPF) is unlikely to see any changes. The deposit limit and interest rates have been stagnant for years. Without intervention, the scheme may gradually lose relevance automatically.

#Wishlist for Taxpayers (Unlikely to Be Fulfilled)
While the government speaks about "ease of #compliance," here are some changes that would genuinely make a difference for taxpayers:
- Remove Sub-Limits
Sub-limits like the ₹2.5 lakh taxable #EPF contribution or the ₹7.5 lakh cap on employer contributions to EPF, #NPS, and Superannuation Funds complicate the system unnecessarily. Eliminating these would simplify taxation, ensuring better compliance.
- Make #ITR Filing Truly Simple
The current ITR filing website is far from intuitive. Even financially savvy individuals face difficulties navigating it. Compare this to private platforms, where filing is smooth and hassle-free. Why can’t the government offer a similar experience? By the way, through AIS, they already have all the information, they just need to populate it in the right cells!
- Rethink #Surcharges and #Cess
Surcharges and cess add to the tax burden, especially for high-income earners. Either rethink these levies or increase the limits to make them less punitive.

The clock is ticking, and while expectations are high, history suggests we might only see minor tweaks rather than transformational changes.

What do you think? What else should the government do to make life of common citizens better?