Union Budget: Chd hopes for tax relief, economic growth and sectoral support

Chandigarh: City residents from different walks of life have high expectations from the Union Budget 2025-2026. Union finance minister Nirmala Sitharaman will present the budget on Feb 1.
Relief for taxpayers is at the top of the agenda for most city residents. Naveen Manglani, vice-president, Chamber of Chandigarh Industries (CCI), said, "To provide relief to taxpayers while boosting compliance, there should be an increase in tax slabs.The govt should raise the basic exemption limit to Rs 7.5 lakh and adjust slabs to reduce the burden on middle-income groups."
The CCI vice-president further demanded that tax rates should be lowered. "A 10% tax rate up to Rs 12 lakh and 20% up to Rs 25 lakh to enhance disposable income should be done. There should also be a special deduction for the salaried class. A ₹1.50 lakh standard deduction under the new regime to offset the lack of allowances should be done. This will encourage spending, improve tax compliance, and drive economic growth."
Chandigarh Beopar Mandal president Charanjiv Singh stressed that the income limit for individuals should be increased. "It should be increased from Rs 7,00,000 to Rs 10,00,000 for all assessees. Capital gain should be exempted if one sells a self-occupied shop or factory and buys another suitable commercial property for self-occupation in a specified time on the pattern of residential property. GST should be exempted from medical insurance policies. The budget on health and education should be increased substantially to improve these services," said Singh.
City-based advocate Ajay Jagga wants the centre to spend more on artificial intelligence research and development. "The upcoming Indian budget should focus on giving a higher budget to AI innovation, providing relief to taxpayers by increasing the exemption of the income tax slab, simplifying IT returns, reducing GST on medical insurance, job creation, and inflation control. Key sectors like infrastructure, healthcare, and agriculture may see increased allocations. Support for MSMEs, digital innovation, and green energy initiatives is also anticipated," said Jagga.
Vinod Vashisht, convener, City Forum of Residents Welfare Organisations (CFORWO), said, "Income tax collisions have doubled in the last three years. Expect rationalising of exim tariffs, corporate taxation, income tax relief, and GST simplification to provide handholding and protection to domestic industry besides standing by the lower and middle class of India. For the last decade, average annual budget growth has gone to single digits, viz below 10%, which used to be higher than the average 10% the decade preceding."
Chartered accountant and former Chairman, ICAI, Chandigarh branch Kapil Sabharwal, said, "We CAs expect significant tax reforms, including a reduction in corporate tax rates and an increase in the basic exemption limit for individuals. There should be a clearer roadmap for the implementation of GST, simplifying indirect taxes. CAs also hoped for the simplification of income tax laws, with more transparent provisions to ease compliance. We anticipate measures to support startups and MSMEs, including tax incentives and improved access to credit. Additionally, there was a demand for reforms to tackle black money, enhance foreign investment policies, and streamline company law provisions."
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