The Finance Minister Nirmala Sitharaman presented the Union Budget for the Financial Year 2025-26 on February 1 in the Lok Sabha.
Among many announcements made during the Union Budget 2025 presentation, the Finance Minister proposed a significant overhaul of the income tax regime, exempting individuals earning up to Rs. 12 lakh annually from paying income tax. The budget promises transformative reforms across different sectors and this move that aims at providing relief to the middle class and boosting disposable income was among the key highlight of the budget.
Other major highlights of the Budget Speech are as follows: —
- New Income Tax Bill to be proposed Next Week: FM
- Customs protocols to be eased: FM
- Continuing geopolitical headwinds suggest slower global growth, says Finance Minister
- Budget 2025 aims to bring transformative reforms across six areas: taxation, urban development, mining, the financial sector, power, and regulations, says FM
- To Enhance investments, Turnover Limits, Credit limits of MSMEs revised: FM Nirmala Sitharaman in Budget 2025 Speech
- New Scheme for 5 lakh Women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs
- Powering Entrepreneurship New Fund of Funds for Startups to be set up additional contribution of ₹ 10,000 crore.
- Agriculture productivity scheme to help over 1.5 crore farmers, says Finance Minister Nirmala Sitharaman presenting Budget 2025
- Budget 2025: FM Nirmala Sitharaman proposes Makhana Board for Bihar to improve production and marketing
- Revamped KYC portal to be launched in 2025: Union Budget 2025
- FDI Limit for the insurance sector to be raised to 100%: FM
- Govt to decriminalize more offences: FM
- Rationalization of Tariff Rate Structure:
- Remove 7 Tariff Rates
- Apply cess on a few items
- Levy not more than one surcharge on goods subject to cess
- 35 additional Capital Goods for Mobile Phone Manufacturing to be Exempted from BCD: FM in Budget 2025 Speech
- Budget 2025: FM proposes 2 years Time Limit to finalize provisional Customs Assessment
- Penalty to be removed on Voluntary confession of tax evasion Not applicable to audit cases already initiated by Tax Dept: FM during Budget 2025 Speech
- TDS: Threshold amount will be increased, Tax rates will be revised, says FM during Budget Speech
- TDS on Annual Rent to be increased to 6 Lakh Rupees: FM
- TCS not applicable on Remittance for certain Education purposes, proposes FM in Budget Speech
- Higher TDS applicable on Non-PAN cases: FM
- Timelimit for updating ITR for Voluntary compliance by Taxpayers increased to 4 years: FM
- Two self-occupied properties conditions exempted from income tax: FM
- Scope of safeharbor Rules to be expanded: FM
- Digitalization is operational now to resolve income tax disputes: FM
- Delay for payment of TCS up to due date to be decriminalised: FM
- Reduce compliance burden on small charitable trusts and institutions: FM
- Personal Income Tax changes: FM proposes No Income Tax upto 12 Lakhs Rupees
- 12.7 Lakhs to slaaried class due to 70,000 Standard Deduction: FM on new income tax threshold revisal
- New Income Slabs
- 0-4 Lakhs- Nil
- 4-8 Lakhs- 5%
- 8-12 Lakhs 10%
- 12-16 Lakhs 15%
- 16-20 Lakhs 20%
- 20-24 Lakhs 25%
- Above 24 Lakhs 30%.