Budget 2025: Expectations for Relief, A Call for Justice

The upcoming Union Budget 2025 is highly anticipated by salaried taxpayers across India, particularly court employees who have long dealt with outdated tax slabs and unresolved financial issues. For years, this diligent segment of the population has encountered significant challenges in saving or investing their income, making it crucial for the government to implement necessary reforms in the upcoming budget.

The Heavy Burden of Stagnant Tax Slabs

One of the most urgent concerns for salaried taxpayers is the absence of updates to income tax slabs over the last decade. The highest tax rate of 30% has remained unchanged, a figure that many believe is excessive given the rising cost of living and sluggish wage growth. For court employees and other salaried individuals, this has resulted in a growing portion of their income being consumed by taxes, leaving little for personal savings or investments.

The Lingering Issue of Pending DA Arrears

Compounding these financial strains is the unresolved issue of pending Dearness Allowance (DA) arrears from the COVID-19 pandemic. During the crisis, DA increments were frozen as part of government austerity measures. However, even as the economy has bounced back, these arrears remain unpaid. For court employees, these arrears represent a significant financial support that has been withheld, further intensifying their economic difficulties.

The Upcoming Pay Commission and its Implications
In 2024, the new Pay Commission is expected to lead to salary increases for government employees, including court staff. While this seems to be a positive development, many worry that without a corresponding adjustment in tax slabs, the extra income will merely be absorbed by higher tax obligations. If the highest tax rate continues to be 30%, much of the intended financial benefit from these salary increases will be diminished, leaving employees with minimal net gains.
Why Tax Reform is Essential

Why Tax Reform is Essential

To ease the financial burden on salaried taxpayers, the government should focus on lowering the highest tax bracket from 30% to between 20% and 25%. This reduction would not only offer immediate relief but also encourage savings and investments, which are essential for sustainable economic growth. Furthermore, raising tax exemption limits and updating deductions under sections like 80C would significantly improve the financial well-being of taxpayers.

Beyond Taxes: Addressing Grievances

While tax reforms are crucial, the government also needs to tackle unresolved issues such as the release of pending DA arrears. This long-awaited measure would help rebuild trust and confidence among salaried employees. Moreover, implementing targeted benefits for court employees, such as special allowances or specific tax deductions, would recognize their unique contributions and challenges, providing them with a sense of acknowledgment and relief.

Conclusion

The Union Budget 2025 offers a critical chance for the government to tackle the persistent challenges faced by salaried taxpayers, especially court employees. Adjusting tax brackets, releasing overdue DA arrears, and introducing targeted benefits can deliver essential financial support to this dedicated segment of society. Neglecting these issues risks further alienating a group that is fundamental to the nation’s governance and justice system. It’s time for a budget that puts people first and ensures financial fairness for everyone.