Finance Minister Nirmala Sitharaman presented the Union Budget 2025 on February 1st, 2025, at 11:00 AM before the Parliament. Finance Minister Nirmala Sitharaman has tax reforms aimed at encouraging investment, employment, and economic growth. These measures focus on startups, foreign investments, and infrastructure funding, creating a more business-friendly environment.
Tax Benefits for NRIs in Electronics Manufacturing: NRIs providing services to resident companies involved in setting up or operating electronics manufacturing facilities will benefit from a presumptive taxation regime, making tax compliance easier and promoting investment in the sector.
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Extended Tax Benefits for Startups: The period of incorporation for startups to qualify for tax benefits has been extended by five years, allowing tax incentives for startups incorporated before April 1, 2030. This move encourages more entrepreneurship and job creation.
Boost for Global Financial Services in IFSC: Special tax benefits will be provided to ship-leasing units, insurance offices, and treasury centers of global companies operating in the International Financial Services Centre (IFSC). This aims to attract foreign financial institutions and make India a global financial hub.
More Infrastructure Funding Through Sovereign and Pension Funds: The investment deadline for Sovereign Wealth Funds and Pension Funds has been extended by five more years, encouraging more funding for infrastructure projects. This will boost long-term investments in roads, railways, and other key infrastructure sectors.
Read More: https://www.taxscan.in/union-budget-2025-key-highlights/485585/
The tax changes in Budget 2025 will help India’s economy grow in many ways. By offering easier tax rules for NRIs working in electronics manufacturing, the government hopes to bring in more foreign investment and support local businesses. The extension of tax benefits for startups means that new businesses will get more time to grow and create jobs.
Special tax advantages for financial companies in the International Financial Services Centre (IFSC) will help attract big global businesses to India. Also, by allowing more time for sovereign and pension funds to invest, the government is making sure that important infrastructure projects, like roads and railways, get enough funding.
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