Dhruv Chopra expects tax relief while ensuring revenue balance

New Delhi

Dhruv Chopra, Managing Partner at Dewan P.N. Chopra & Co, expressed expectations for the upcoming Union Budget, emphasizing the need for tax relief while balancing the government's revenue requirements. He highlighted that taxpayers hope for enhanced rebates for lower-income groups and an increase in the basic exemption limit under both tax regimes to counter inflation. He also suggested raising the turnover limit for taxation under Sections 44AD and 44ADA, benefiting businesses and professionals. Additionally, he called for higher interest deduction limits on housing loans under Section 24(b), proposing an increase to Rs. 3 lakh for homebuyers.

Chopra stressed the need for faster disposal of faceless assessments and appeals, which, though appreciated, have a significant backlog. He also advocated for simplifying the TDS process for non-resident property sellers.

On capital gains tax, Chopra expects an increase in the exemption limit for long-term capital gains (LTCG) on equities, possibly raising it from Rs. 1.25 lakh to Rs. 2 lakh. He further recommended rationalizing the new grandfathering rule and extending it to non-residents and corporates. Chopra also called for a review of Sections 54 and 54F, suggesting the removal of restrictions on investing sale proceeds in two residential houses and reducing the minimum holding period for new assets from three to two years.

Additionally, he proposed extending exemptions under Sections 54 and 54F to business properties and increasing the limit under Section 54EC to Rs. 2 crore.

Union Budget 2025 session expected January-April

The first part of Parliament’s Budget Session is expected to take place from January 31 to February 13. Finance Minister Nirmala Sitharaman will present her eighth consecutive budget on February 1. As per tradition, the session will begin with President Droupadi Murmu’s address to a joint sitting of the Lok Sabha and Rajya Sabha on January 31, followed by the presentation of the economic survey. After a brief recess, the second part of the session is likely to be scheduled between March 10 and April 4. During the first part, there will be a debate in both Houses on the Motion of Thanks for the President's address, which will conclude with the Prime Minister’s response in both chambers.