HomePoliticalUnion Budget 2025: Here's all major highlights and benefits

Union Budget 2025: Here’s all major highlights and benefits

Union Budget 2025: Here's all major highlights and benefits
Union Budget 2025: Here’s all major highlights and benefits
Finance Minister Nirmala Sitharaman unveiled the Union Budget 2025. The budget introduces several reforms to support the middle class, improve infrastructure, and strengthen various sectors of the economy. A key feature is the revision of income tax slabs that brings considerable relief to taxpayers.

The government has raised the tax-free threshold to ₹4 lakh and offers tax benefits for incomes up to ₹12 lakh. The new income tax rates are:

– Up to ₹4 lakh: No tax

– ₹4–8 lakh: 5%

– ₹8–12 lakh: 10%

– ₹12–16 lakh: 15%

– ₹16–20 lakh: 20%

– ₹20–25 lakh: 24%

– Above ₹25 lakh: 30%

This revised structure is designed to ease the financial pressure on middle-income families. For example, an individual with an annual income of ₹12 lakh would save ₹80,000 under the updated regime.

The budget also brings important changes to TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) regulations. The exemption limit for TDS on salary income has been increased from ₹2.4 lakh to ₹6 lakh, which will help many taxpayers. In addition, the exemption limits for TDS and TCS on financial dividends have been raised from ₹50,000 to ₹1 lakh. The threshold for TCS under the Liberalized Remittance Scheme (LRS) has been revised upward from ₹7 lakh to ₹10 lakh. Moreover, the government has proposed reducing TCS on educational remittances up to ₹10 lakh. This measure is expected to make overseas education more affordable for students.

Investment Plans  

According to the Economic Survey, India’s GDP is expected to grow between 6.3% and 6.8% in the financial year 2025-26. The government is focusing on structural reforms and deregulation to enhance medium-term growth.

Key initiatives include:  

– Increased capital expenditure: ₹10.18 lakh crore allocated for infrastructure projects.

– Higher investments in renewable energy: The government plans to develop 100 GW nuclear energy capacity by 2047.

– Encouraging private sector participation: The Atomic Energy Act will be amended to allow private players in nuclear energy production.

Benefits for Farmers and Rural Development  

The government has introduced several schemes to support farmers:

– Kisan Credit Card loan limit increased: Farmers can now avail up to ₹5 lakh under this scheme.

– PM Dhan Dhanya Krishi Yojana: This program will improve irrigation facilities in 100 districts, benefiting 1.7 crore farmers.

– Mission for self-reliance in pulses: A five-year plan to boost production of tur, masoor, and urad dal.

Relief for Senior Citizens  

The budget includes special provisions for senior citizens:

– Tax deduction limit doubled: The tax deduction limit has increased from ₹50,000 to ₹1 lakh.

– TDS exemption on rent raised: The annual limit for TDS on rental income has increased from ₹2.4 lakh to ₹6 lakh.

Education and Healthcare Development  

Education and healthcare sectors received a major boost in this budget:

– 50,000 Atal Tinkering Labs to be set up in schools to encourage innovation.

– Expansion of IITs and medical colleges: 75,000 additional medical seats will be introduced in the next five years.

– Daycare cancer centers: 200 centers will be established in 2025-26 to provide better treatment facilities.

Support for MSMEs and Startups  

The budget focuses on empowering Micro, Small and Medium Enterprises (MSMEs):

– Loan limit for MSMEs increased: Eligible startups can now avail loans up to ₹10 crore.

– Special scheme for SC/ST and women entrepreneurs: First-time business owners can get loans up to ₹2 crore.

Infrastructure and Transport Upgrades  

The government is investing heavily in infrastructure to improve connectivity across the country:

– 120 new destinations to be connected under the revamped UDAN scheme in the next ten years.

– Greenfield airports to be developed in Bihar.

– National Manufacturing Mission to support clean-tech industries, including solar cells and EV batteries.

 

 

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