Union budget 2025 Key Highlights PDF

Union budget 2025 Key Highlights

Union Finance Minister Nirmala Sitharaman presented her 8th budget on 1 February 2025. This will be her second full-fledged Budget in Modi 3.0 and her eighth budget presentation overall in Parliament.

Budget 2025 Highlights

• The Union Finance Minister announced that people in India earning ₹12 lakh a year will get a tax benefit of ₹80,000, and 100 per cent of the tax due within the existing rates will be exempted.
• A taxpayer in the new regime with an income of ₹12 lakh will benefit from ₹80,000 in tax (100% of tax payable as per existing rates will be exempt). The effective income tax rate will be 0%,” according to the budget announcement
• Union finance minister Nirmala Sitharaman on Saturday announced an allocation of Rs 20,000 crore to support private sector- driven research.
• Time to file tax returns extended from two years to four years.
• The Finance Minister announced that a new scheme will be launched for five lakh Scheduled Castes and Scheduled Tribes (SC/ST) women entrepreneurs. This will involve giving term loans of up to Rs 2 crore during the next five years.
• An infusion of Rs 20,000 crore to increase tourism-led employment is going to help several states that house top tourist locations build infrastructure and boost connectivity.
• Finance Minister Nirmala Sitharaman announced that 50,000 Atal Tinkering Labs will be set up in government schools over the next five years to “foster scientific temper among young minds.”
• The Finance Minister announced that the loan limit under the Modified Interest Subvention Scheme (MISS) will be increased from Rs 3 lakh to Rs 5 lakh.
• 10,000 medical undergraduate and postgraduate seats will be added over the next year.
• The Finance Minister has announced extension of Jal Jeevan Mission (JJM) till 2028. The JJM, launched in 2019, was the one of the biggest programmes of the Modi 2.0.
• Finance Minister has announced the setting up of a new urea plant at Namrup (Assam) with an annual production capacity of 12.70 lakh tonnes.

Income Tax Slab Rate for AY 2025-2026

In the new tax regime, the revised tax rate structure will stand as follows:

TDS/TCS rationalization for easing difficulties

• Rationalization of Tax Deduction at Source (TDS) by reducing number of rates and thresholds above which TDS is deducted.
• The limit for tax deduction on interest for senior citizens doubled from the present Rs 50,000 to Rs 1 lakh.
• The annual limit of Rs 2.40 lakh for TDS on rent increased to Rs 6 lakh.
• The threshold to collect tax at source (TCS) on remittances under RBI’s Liberalized Remittance Scheme (LRS) increased from Rs 7 lakh to Rs 10 lakh.
• The provisions of the higher TDS deduction will apply only in non-PAN cases.
• Decriminalization for the cases of delay of payment of TCS up to the due date of filing statement.

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