As Union Budget 2025 approaches, Dr. Anil Pillai, Director of Terragni Consulting, has outlined key reforms that could enhance personal finance, taxation, and investment policies to support financial stability and long-term wealth creation.
“The Budget presents an opportunity to provide much-needed clarity and reforms in personal finance, taxation, and investments. Increasing the housing loan interest deduction cap from ₹2 lakh to ₹3 lakh under Section 24(b) would provide significant relief amidst high borrowing costs,” Dr. Pillai stated.
He also emphasized the need for higher deductions under Section 80D for health insurance premiums, particularly for senior citizens, to improve financial preparedness for healthcare expenses.
In the investment space, Dr. Pillai recommended rationalizing capital gains tax structures across equity, debt, and real estate to simplify compliance and encourage retail participation in stocks and mutual funds. Additionally, he advocated for tax incentives on sustainable investments, such as electric vehicles and rooftop solar installations, aligning personal finance strategies with broader sustainability goals.
“By focusing on these areas, the Budget has the potential to encourage savings, drive investments, and support long-term financial stability for individuals and households,” he added.
With expectations running high for Union Budget 2025, industry experts and investors are keenly watching for key taxation and investment policy shifts that could boost economic growth and financial security.
