Union Budget 2025 expectations highlights: Will Budget 2025 raise tax deductions for homebuyers?

Union Budget 2025 Latest Updates: Catch all the latest developments related to Union Budget 2025 here

Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget 2025 on February 1 at 11 am in the Lok Sabha. The address will be broadcast live through official Parliament channels, Doordarshan, and Sansad TV, with streaming available on the government's YouTube platforms.

 

Since the Narendra Modi government came to power in 2014, it has implemented notable reforms in the budgetary process. These reforms include combining the Rail Budget with the main Budget in 2017, shifting the presentation date to February 1, and adopting a digital format in 2021. 

Abhishek Raj, founder and CEO of Jenika Ventures, said, "As we approach the 2025 Union Budget, the real estate sector, which contributes around 8 per cent to India’s GDP, expects the government to bring measures to help sustain its growth trajectory. We urge the government to consider raising the tax deduction ceiling on home loan interest under Section 24(b) of the Income Tax Act from Rs 2 lakh to  5 lakh, which would significantly benefit first-time homebuyers. Additionally, revising the affordable housing price cap in urban areas from Rs 45 lakh to Rs 75 lakh is critical, given the rising costs of land and construction."

 

"Granting real estate sector status would also unlock enhanced financing opportunities. We strongly believe that incorporating these policies into the budget will not only strengthen the real estate industry but also contribute significantly to the nation’s economic expansion." said Abhishek Raj.

 

4:54 PM

Government should focus on strengthening PLI, MSME initiatives in Budget 2025: Novamax Appliances CEO

Harshit Aggarwal, founder and CEO of Novamax Appliances, said, "As we await the pre-Budget expectations for 2025, we hope the government to continue reinforcing policies on local manufacturing support, empowering MSMEs, startups, and the 'Made in India' brand."

 

"Initiatives such as the Pradhan Mantri Mudra Yojana have been really crucial in providing easy access to credit for the empowerment of MSMEs and startups, for innovation and scaling of small businesses, and for the dynamic manufacturing ecosystems of India. Further expanding these schemes will strengthen our domestic industries and reduce import dependence. Additionally, the PLI schemes have shown remarkable progress in transforming India's manufacturing sector," Aggarwal said.

4:47 PM

How will Union Budget 2025 address e-commerce growth and retail tax reforms?

Rajeev Kumar Gupta, MD at Thermocool Home Appliances, said, “As the retail sector continues evolving according to changing consumer patterns and technology, the Union Budget 2025 should prioritise digital transformation, infrastructure development, and consumption facilitation. As the Indian retail environment increasingly turns to e-commerce, the sector awaits more regulatory clarity and support for online retail platforms." 

 

Gupta further said, "For consumers, we anticipate an increase in tax exemptions or rebates for stimulating discretionary spending, especially on discretionary goods and services commonly used such as clothes, electronics, and home products. Such consumption spending is vital for continuing retail growth, and targeted assistance to middle-income households is expected to significantly contribute to this."

4:37 PM

Education sector seeks 100% GST exemption for BPL, LIG students: Physicswallah Co-founder

Prateek Maheshwari, co-founder of Physicswallah, said, "Students that hail from Below Poverty Line (BPL) and Low Income Group (LIG) families should receive 100 per cent GST exemption from all educational expenses, be it test-prep courses or job-oriented skill courses; as it takes away a significant portion of their net disposable income. The 18 per cent tax slab on higher or online education including skilling is extremely high." 

 

"Another important step to creating affordable degrees is rationalisation in interest rates of student loans and interest-free loans for economically disadvantaged students," Maheshwari added.

3:10 PM

Education sector seeks higher AI allocation for schools, colleges: GeniusMentor CEO

Mridu Andotra, founder and CEO, GeniusMentor, said, "I believe the Indian education system is on the cusp of a technological revolution, and the upcoming budget presents a crucial opportunity to solidify our commitment to integrating AI into the learning experience. While the National Education Policy (NEP) 2020 and its 2024 updates have laid the groundwork for introducing AI in schools and colleges. Although the government allocated Rs 10,300 crore to the IndiaAI Mission in the 2024-25 budget, this initiative encompasses broader AI development, not solely education."

 

"To truly empower India's youth and establish the nation as a leader in AI, the upcoming budget must prioritize a dedicated budget allocation for AI in schools and colleges. A significant increase is needed, potentially aiming for 5-10 per cent of the overall education budget, to match the ambitious goals outlined in the NEP 2020. This investment should focus on providing cutting-edge AI infrastructure, including high-speed internet access, advanced digital tools, and dedicated AI labs in schools and colleges. It should also include provisions for upskilling educators in AI pedagogy and developing engaging, hands-on AI learning experiences for students," Andotra said.

1:49 PM

Bioenergy sector seeks subsidies, tax benefits for green shift: Green Power International MD

Varun Puri, managing director at Green Power International Pvt. Ltd, said, "We are hopeful that the upcoming Union Budget will include impactful measures to address the dual challenges of rising air pollution and sustainable energy transition. Bioenergy, as a clean and renewable source, holds immense potential in tackling these issues while supporting India’s energy security goals."

 

"We look forward to policy initiatives that incentivize the setup of bioenergy plants, offer subsidies for advanced energy equipment, and provide financial support for importing cutting-edge clean energy technologies. Simplifying regulatory processes and offering tax benefits for the adoption of sustainable energy solutions will further encourage industries to transition to greener alternatives," Puri said.

1:21 PM

Can Budget 2025 lower LTCG tax and reintroduce indexation for debt funds?

Manish Bhandari, CEO and Portfolio Manager at Vallum Capital Advisors, said, "Reducing the LTCG tax on equities from 12.5 per cent to 10 per cent would leave an additional 2.5 per cent of gains in investors' hands as investable capital. This surplus capital is likely to be reinvested in the market, enhancing liquidity and deepening market penetration."

 

"Similarly, reintroducing indexation benefits for debt mutual funds would ensure that investors are taxed only on real gains, making long-term investments in debt markets more attractive. These changes align with global best practices and can create a virtuous cycle — encouraging more retail and institutional participation, strengthening capital markets, and driving sustainable long-term growth," Bhandari added.

12:12 PM

NBFCs want reforms for seamless credit delivery and improved liquidity: Home Credit India CEO

Ondrej Kubik, CEO at Home Credit India, said, "We are optimistic that the Budget will introduce initiatives to make credit more accessible and affordable, especially for lower-middle-class consumers in the consumer durables segment — a key pillar of India’s consumption economy." 

 

"Measures such as incentivising digital lending, reducing borrowing costs, and offering targeted subsidies, liquidity support, or tax benefits for consumer durable financing could empower this demographic. These steps would not only to bridge the credit gap, but also enhance purchasing power and elevate living standards, driving overall economic growth," Kubik said.

 

"To sustain this progress, it is necessary to improve liquidity provisions for NBFCs, particularly those operating in the underserved and underbanked market segment, for seamless credit delivery. The NBFC sector would be significantly benefitted from reforms such as more effective loan recovery mechanisms, expanded access to multi source KYC, and taxation reforms, including the harmonizing TDS provisions between banks and NBFCs and offering incentives for lending to underbanked and unbanked. Furthermore,  improving  liquidity and encouraging co-lending arrangements between NBFCs and banks by resolving agreement ambiguities would be highly beneficial," he added.

 

11:30 AM

Beauty sector seeks Budget 2025 support for D2C growth, access to quality products: Recode Studios co-founder

Dheeraj Bansal, co-founder of Recode Studios, said, "As an affordable beauty brand, we are inspired by the consistent growth of India’s beauty and personal care market, which is projected to expand from $26 billion in 2022 to $33 billion by 2027 at a CAGR of 6 per cent. This growth, particularly in the direct-to-consumer (D2C) segment, presents immense opportunities for brands like ours to reach more customers and enhance accessibility to quality beauty products."