Leading up to the Budget session, there was growing anticipation of notable changes to the tax slabs under the new tax regime.
Published Feb 01, 2025 | 10:40 AM ⚊ Updated Feb 01, 2025 | 4:57 PM
Nirmala Sitharaman with the budget. (Supplied)
Union Budget for 2025-26 in Parliament on Saturday, 1 February, at 11 a.m marked Finance Minister Nirmala Sitharaman‘s eighth consecutive Budget presentation.
Leading up to the Budget session, there was growing anticipation of notable changes to the tax slabs under the new tax regime.
Down south, the states expected state-specific announcements from Sitharaman as she rose to make the speech. None of the southern states have robust financial health, and all looked forward to some relief to tide over their crises.
The new tax structure aims to reduce the tax burden on the middle class, boosting household consumption, savings, and investment.
A ‘nil tax’ slab has been introduced for incomes up to ₹12 lakh, and up to ₹12.75 lakh for salaried taxpayers with a standard deduction of ₹75,000.
Minister Sitharaman announced a new scheme to determine the arm's length price of international transactions for a block period of three years, streamlining transfer pricing and offering an alternative to annual assessments.
Additionally, tax exemptions will be provided on withdrawals from the National Savings Scheme made by individuals on or after August 29, 2024.
Finance Minister Nirmala Sitharaman during the 2025 budget session praised the middle class for providing strength to India's growth, acknowledging their crucial role in the nation's development.
Union Finance Minister announced that there will be no income tax payable up to an income of ₹12 lakh, providing significant relief to taxpayers.
Nirmala Sitharaman announced that relief will be provided for two self-occupied homes, benefiting homeowners with multiple properties.
Minister Sitharaman announced that the compliance burden for small charitable trusts and institutions will be reduced by increasing their registration period from 5 years to 10 years.
The finance minister announced that the limit for tax deduction on interest for senior citizens will be doubled from ₹50,000 to ₹1 lakh.
Finance Minister Sitharaman announced that the TCS threshold has been increased from ₹7 lakh to ₹10 lakh, providing relief to taxpayers.
She further announced the removal of TCS on remittances for education, easing the process for students going abroad.
Minister Sitharaman announced that the time limit to file returns has been extended to four years, offering taxpayers more time to comply.
The finance minister announced that the Basic Customs Duty (BCD) on wet blue leather will be fully exempted, boosting the leather industry.
Additionally, the BCD on frozen fish paste (surimi) will be reduced from 30 percent to 5 percent, enhancing competitiveness in global markets.
Minister Sitharaman proposes to rationalise TDS at source, simplifying the process. Additionally, the TDS exemption limit on rent has been increased to ₹6 lakh.
Union Budget 2025 announces the development of greenfield airports in Bihar, enhancing regional connectivity and infrastructure.
Finance Minister during the Budget session quoted from Thirukural while addressing the Narendra Modi government’s understanding of citizens' demands on taxation.
Union Finance Minister announces the removal of 7 tariffs on exports. Additionally, custom duty charges will be cut on lithium-ion batteries to support green energy initiatives.
Union Finance Minister Nirmala Sitharaman announces the removal of 7 tariffs on exports.
Additionally, custom duty charges will be cut on lithium-ion batteries to support green energy initiatives.
36 life-changing drugs will be added to the list of medicines fully exempted from basic customs duty, making them more accessible for treatment.
37 more medicines and 13 new patient assistance programmes will be fully exempted from Basic Customs Duty.
Minister Nirmala Sitharaman announced that the FDI limit for the insurance sector will be raised from 74 percent to 100 percent, boosting foreign investment in the industry.
Union Finance Minister announces the removal of the social welfare surcharge on 82 tariff lines currently subjected to a cess, aiming to streamline and reduce taxes on specific goods.
Minister Sitharaman announced that in July, fiscal consolidation will be taken up with a roadmap for the next 6 years. The revised estimate stands at 4.8 percent of GDP.
A High-Level Committee (HLC) for regulatory reforms will review all non-financial sector regulations, permissions, and licenses.
The committee will make recommendations within a year to enhance the ease of doing business.
States will be encouraged to join the setup, and an Investment Friendliness Index of states will be launched.
The Union minister announces that a New Income Tax Bill will be brought next week, setting the stage for significant reforms.
She further added that the New Income Tax Bill will be simple to understand for both taxpayers and administrators.
Minister Sitharaman announces the creation of an Export Promotion Mission and 'BharatTradeNet’ (BTN), a unified platform for trade documentation and financing solutions, aimed at enhancing digital infrastructure for international trade.
To simplify processes, the KYC registry will be ruled out in 2025, streamlining identification procedures across sectors.
Over the next 5 years, the PM Research Fellowship scheme will provide 10,000 fellowships for technological research in IITs and IISc, with enhanced financial support to foster innovation.
The top 50 tourist destinations will be developed in collaboration with states in a 'Challenge Mode'.
"Land for building key infrastructure should be provided by states. Hotels will be included in the structure," announced the Union Finance Minister.
Medical tourism and Heal in India will be promoted in partnership with the private sector, alongside efforts for capacity building and easier visa norms to attract global patients.
Union Finance Minister announced a modified UDAN scheme to be launched to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in the next 10 years.
A new Geo-Spatial Mission will be launched using Gati Shakti for urban planning and design of projects, aiming to streamline and enhance infrastructure development.
#UnionBudget2025: A new Geo-Spatial Mission will be launched using Gati Shakti for urban planning and design of projects, aiming to streamline and enhance infrastructure development.
Get live updates here: https://t.co/6C9WHd60K6
— South First (@TheSouthfirst) February 1, 2025
The Finance Minister announced the Prime Minister Dhan Dhanya Krishi Yojana, which will converge existing schemes to cover 100 districts with low productivity and moderate crop intensity.
The initiative is expected to benefit 1.7 crore farmers, boosting agricultural productivity, enhancing post-harvest storage, and more.
Minister Sitharaman announced the facilitation of shipbuilding clusters and the creation of a Maritime Development Fund with a ₹25,000 crore corpus to support the maritime sector.
The government aims for the development of 100GW of nuclear energy by 2047, marking a significant step towards sustainable energy.
"Development of at least 100 GW of nuclear energy is essential for our energy transition efforts," says Union Finance Minister Sitharaman.
The Atomic Energy Act (1962) and Civil Liability for Nuclear Damage Act (2010) will be amended to promote private-sector collaboration.
R and D for small modular reactors will be set up with an outlay of ₹20,000 crore, with 5 indigenously developed small modular reactors expected to be set up by 2033.
A ₹1 crore Urban Challenge Fund will be set up to implement proposals for transforming cities into growth hubs and fostering creative redevelopment.
₹10,000 crore allocated for the 2025-26 financial year.
The Jal Jeevan Mission (JMM) will be extended till 2028 with an enhanced outlay to ensure 100 percent of rural households have access to tapped drinking water.
10,000 additional seats to be added in medical colleges and hospitals in the coming year, to add 75,000 seats over the next five years.
Daycares and cancer centres will be set up in all district hospitals within the next three years, with 200 centres planned for 2025-26.
Identity cards and registration on the e-shram portal will be introduced for gig workers, with 1 crore workers set to receive health coverage under the scheme.
Additionally, UPI-linked credit cards will be introduced for street vendors, enabling easier access to digital payments and credit.
Additional infrastructure will be provided in five IITs started after 2016 to facilitate education for more students. Hostels and other infrastructure capacity at IIT Patna will also be expanded.
A Centre of excellence in Artificial intelligence is also expected to be set up.
"We will implement a scheme to make India a global hub for toys," announces Finance Minister Sitharaman.
The initiative will focus on sustainable toys, showcasing the Make in India brand on the world stage.
A new ₹10,000 crore Fund of Funds for Startups was announced, doubling govt support to ₹20,000 crore to fuel entrepreneurship.
A new scheme will also support 5 lakh first-time women, SC, and ST entrepreneurs.
#UnionBudget2025: A new ₹10,000 crore Fund of Funds for Startups announced, doubling govt support to ₹20,000 crore to fuel entrepreneurship.
A new scheme will also support 5 lakh first-time women, SC, and ST entrepreneurs.
Get live updates here: https://t.co/6C9WHd60K6
— South First (@TheSouthfirst) February 1, 2025
Broadband connectivity is to be provided to all government secondary schools and Primary Health Centres in rural areas under the Bharat Net project.
During the Budget session 2025, Minister Sitharaman said that Atal Tinkering labs will be set up in government schools to cultivate curiosity.
Finance Minister Sitharaman announced that Saksham Anganwadi and Poshan 2.0 will provide nutritional support to 8 crore children and 1 crore lactating mothers across the country.
Finance Minister Nirmala Sitharaman announced the National Manufacturing Mission for large, medium and small industries during the Union Budget 2025 session.
Kisan Credit Card borrowing limit increased to ₹5 Lakh to ₹3 Lakh for short-term borrowing for agricultural, dairy, and fisheries farmers.
#UnionBudget2025: The Kisan Credit Card borrowing limit has been increased to ₹5 lakh from ₹3 lakh for short-term borrowing, benefiting farmers in agriculture, dairy, and fisheries.
Get live updates here: https://t.co/6C9WHd60K6 pic.twitter.com/Ca10w4UhGH
— South First (@TheSouthfirst) February 1, 2025
Down south, the states are expecting state-specific announcements from Sitharaman as she rises to make the speech, likely at 11 am. None of the southern states has robust financial health, and all are looking forward to some relief to tide over the crises they are in.
President Droupadi Murmu offers Union Finance Minister Nirmala Sitharaman the traditional "dahi-cheeni" (curd and sugar) before her Budget presentation.
Union Minister for Finance and Corporate Affairs Smt Nirmala Sitharaman along with Minister of State for Finance Shri Pankaj Chaudhary and senior officials of the Ministry of Finance called on President Droupadi Murmu at Rashtrapati Bhavan before presenting the Union Budget. The… pic.twitter.com/uFF4ElKUOr
— President of India (@rashtrapatibhvn) February 1, 2025
