Finance Minister Nirmala Sitharaman presented the eighth consecutive budget on Saturday, February 1, 2025. The major announcements of Union Budget 2025-26 include: change in income tax slabs, PM Dhan-Dhaanya Krishi Yojana, Aatmanirbharta in Pulses, Makhana Board, Nuclear Energy Mission, BharatTradeNet for international trade, and more.
The Government will introduce a new Income Tax bill next week to take forward the “trust first, scrutinise later” concept.
Budget 2025 Key Announcements & Highlights
- Gareeb, youth, nari will be the key focus
- Prime Minister Dhan-Dhaanya Krishi Yojana - Developing Agri Districts Programme
- Underemployment in agri will be addressed, 1.7 crore farmers will benefit
- National Mission on high yielding seeds will be launched
- A 6-year “Mission for Aatmanirbharta in Pulses” with a special focus on Tur, Urad and Masoor
- Makhana Board in Bihar will be established in the state to improve production, processing, value addition, and marketing of makhana.
- FM proposes 5-year programme for increasing Cotton Productivity
- India Post to become large public logistic organisation, India Post to be turned into large logistic body with 1.5 lakh rural post offices
- Atal Tinkering Labs: 50,000 such labs to be set up in govt schools in 5 years
- 10,000 additional seats to be inculcated in medical institutes; 75,000 medical seats in 5 years will be created
- Kisan Credit Cards for 7.7 crore farmers; loan Limit enhanced to ₹5 lakh
- MSME: Term loans up to ₹20 crore will be given
- Customized Credit Cards with a ₹5 lakh limit for micro enterprises registered on Udyam portal.
- Modified UDAN scheme to be launched; 120 new destinations under modified UDAN scheme
- A new Fund of Funds, with expanded scope and a fresh contribution of another ₹10,000 crore will be set up.
- SWAMIH Fund: another 40,000 housing units to be completed in 2025
- Top 50 tourism destination to be developed
- National Geospatial Mission announced
- Establishment of a National Institute of Food Technology, Entrepreneurship and Management in Bihar for food processsing
- Second Gene Bank to be set up for future food security
- Greenfield airports to be facilitated in Bihar
- New income tax bill next week, says Sitharaman
- Jan Vishwas Bill 2.0 to be brought in to decriminalise 100 provisions
- Revised fiscal deficit estimated to be 4.8% of GDP
- Capital expenditure at ₹10.18 lakh crore
- Gross market borrowings at ₹14.82 lakh crore
- Social welfare surcharge on 82 tariff lines waived
- 36 life-saving drugs fully exempted from customs duty
- Handicrafts: 9 items to be added to duty free inputs
- Personal tax reforms with special focus on middle class
- TCS for remittance on education purposes removed
- Compliance burden reduced for small charitable trusts
- New scheme to determine Arms length Price in international transactions to be introduced
- Digitalisation being operationalised in tax frameworks
- Start ups: Extending incorporation benefits for five years
- 50,000 Atal Tinkering Labs will be set up in Government schools in next 5 years to cultivate the spirit of curiosity and innovation, and foster a scientific temper among young minds.
- AI: Centre of Excellence in Artificial Intelligence for education will be set up with a total outlay of ₹500 crore
- Nuclear Energy Mission for research & development of Small Modular Reactors (SMR) with an outlay of ₹20,000 crore will be set up
- Maritime Development Fund with a corpus of ₹25,000 crore will be set up.
- ‘BharatTradeNet’ (BTN) for international trade
Tax, financial sector reforms
- FDI limit for the insurance sector will be raised from 74 to 100 per cent.
- Credit Enhancement Facility by NaBFID
- PSB’s to develop ‘Grameen Credit Score’ framework
Direct, Indirect taxes
- Personal Income-tax reforms with special focus on middle class
- Substantial relief is proposed under the new tax regime:
- Nil tax slab raised to ₹12 lakh - Rebate
- Rebate for the resident individual under the new regime - do not pay tax if their total income is up to ₹12,00,000.
- ‘Capital gains limit exceeded to ₹12.7 lakh
- Extended the time-limit to file the updated return from the existing 24 months to 48 months from the end of the relevant assessment year
- Obligation to furnish information in respect of crypto-asset
- Annual value of the self-occupied property simplified
- Benefits of existing tonnage tax scheme to be extended to inland vessels registered under the Indian Vessels Act, 2021 to promote Inland Water Transportation in the country.
- Exemption from withdrawals from National Savings Scheme (NSS)
- Amendment of definition of ‘capital asset’: In order to bring clarity on the chargeability of income arising out of transfer of capital asset being securities held by an investment fund as referred to in section 115UB of the Act, the definition of capital asset is proposed to be amended.
Follow bl’s Union Budget Live to know the key changes in income tax rates and slabs, capital expenditures, new infrastructure projects, agriculture and railway spending plans.