The Indian Union Budget for 2025 was presented by Finance Minister Nirmala Sitharaman on February 1, 2025. It focused on providing significant income tax relief to the salaried middle class and promoting savings, investments, and consumption.
Key Highlights:
* Income Tax Relief: The budget introduced significant changes to the income tax slabs, making the new tax regime more attractive. The standard deduction was increased to ₹75,000, further enhancing the benefits of the new regime.
* Focus on Savings and Investments: The budget aimed to encourage savings and investments by providing tax benefits and simplifying the tax structure.
* Emphasis on Consumption: By providing more disposable income to taxpayers, the government aimed to boost consumption and drive economic growth.
* Atmanirbhar Bharat: The budget included initiatives to promote self-reliance and domestic manufacturing under the Atmanirbhar Bharat initiative.
Main Highlights
1. Kisan Credit Card limit enhanced from Rs. 3 lakh to *Rs. 5 lakh*
2. Additional Infra in 5 IIT’s set up after 2014. IIT Patna to be expanded
3. 10,000 more seats to be added in medical colleges in next year and 75,000 in next five years
4. Rs. 500 Cr. for Centre for Excellence in AI
5. Social Welfare Scheme for GIG workers
6. Extension of Jal Jeevan Mission till 2028
7. Urban Challenge Fund of Rs. 1 lakh crore to be set up
8. Green field airports to be facilitated in Bihar in addition to Patna airport
9. Rs. 20,000 Cr. for Private Sector R&D
10. Top 50 tourist destinations to be developed. Focus on destinations linked to Budha
11. ‘Heal in India’ to be promoted
12. FDI limit for Insurance sector to be raised to 100% if entire premium invested in India
13. Revamped KYC Registry to be rolled out
14. Customs: Rationalize tariff structure
15. 36 life saving drugs exempt from duty & 5% duty on 6 life saving drugs.
Direct and Indirect tax*
1. *New Income tax Bill Next Week*
2. New Income tax Bill to be simple and close to present
3. Personal Income Tax Reforms for Middle class
4. *NIL Income tax upto 12,00,000*
5. Income Tax slab changed
6. TDS and TCS rationalize
7. Limit for TDS on rent increased from Rs. 2.4 lakh to *Rs. 6 lakh*
8. Limit for TDS on Senior citizens enhance from Rs. 50,000 to *Rs. 1,00,000*
9. TCS removed on remittance for education purposes
10. ‘Updated Return’ time limit enhanced *to 4 years* from present 2 years
Income Tax Changes:
The budget made significant changes to the income tax slabs, particularly for those opting for the new tax regime. These changes aimed to make the new regime more appealing and provide substantial tax relief to middle-class taxpayers.
Overall, Budget 2025 aimed to provide relief to taxpayers, boost economic growth, and promote self-reliance.
