Union Budget 2025: Key Highlights

The Union Budget for the Financial Year 2025-26 was presented by Finance Minister Nirmala Sitharaman in the Lok Sabha. Among many announcements made during the Union Budget 2025 presentation, Finance Minister Nirmala Sitharaman proposed a significant overhaul of the income tax regime, exempting individuals earning up to Rs. 12 lakh annually from paying income tax, while suggesting 

This move, aimed at providing relief to the middle class and boosting disposable income, was among the key highlights of a budget that promises transformative reforms across multiple sectors. Other major highlights of the Budget Speech are as follows: —

Union Budget 2025: In-Depth Analysis for Strategic Insights - Click Here

1. New Income Tax Bill to be proposed Next Week: FM

2. Customs protocols to be eased: FM

3. Continuing geopolitical headwinds suggest slower global growth, says Finance Minister

4. Budget 2025 aims to bring transformative reforms across six areas: taxation, urban development, mining, the financial sector, power, and regulations, says FM

5. To Enhance investments, Turnover Limits, Credit limits of MSMEs revised: FM Nirmala Sitharaman in Budget 2025 Speech

6. New Scheme for 5 lakh Women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs 

7. Powering Entrepreneurship New Fund of Funds for Startups to be set up additional contribution of ₹ 10,000 crore.

Union Budget 2025: In-Depth Analysis for Strategic Insights - Click Here

8. Budget 2025: Urban Challenge Fund of Rs 1 lakh crore to be set up

9. Agriculture productivity scheme to help over 1.5 crore farmers, says Finance Minister Nirmala Sitharaman presenting Budget 2025

10. Budget 2025: FM NirmalaSitharaman proposes Makhana Board for Bihar to improve production and marketing

11. Revamped KYC portal to be launched in 2025: Union Budget 2025

12. FDI Limit for the insurance sector to be raised to 100%: FM

13. Govt to decriminalize more offences: FM

Union Budget 2025: In-Depth Analysis for Strategic Insights - Click Here

14. Rationalization of Tariff Rate Structure: 

1. Remove 7 Tariff Rates 

2. Apply Cess on a few Items 

3. Levy not more than one surcharges on goods subject to cess 

4. Full Exemption of BCD on Life saving medicines and patient assistance programmes run by Pharma companies where assistance is free

15. 35 additional Capital Goods for Mobile Phone Manufacturing to be Exempted from BCD: FM in Budget 2025 Speech

16. Budget 2025: FM proposes 2 years Time Limit to finalize provisional Customs Assessment

17. Penalty to be removed on Voluntary confession of tax evasion Not applicable to audit cases already initiated by Tax Dept: FM during Budget 2025 Speech 

Union Budget 2025: In-Depth Analysis for Strategic Insights - Click Here

18. TDS: Threshold amount will be increased, Tax rates will be revised, says FM during Budget Speech

19. TDS on Annual Rent to be increased to 6 Lakh Rupees: FM

20. TCS not applicable on Remittance for certain Education purposes, proposes FM in Budget Speech

21. Higher TDS applicable on Non-PAN cases: FM

22. Timelimit for updating ITR for Voluntary compliance by Taxpayers increased to 4 years: FM

23. Two self-occupied properties conditions exempted from income tax: FM

24. Scope of safeharbor Rules to be expanded: FM

25. Digitalization is operational now to resolve income tax disputes: FM

26. Delay for payment of TCS up to due date to be decriminalised: FM

27. Finance Minister proposes to reduce compliance burden on small charitable trusts and institutions: FM

Union Budget 2025: In-Depth Analysis for Strategic Insights - Click Here

28. Personal Income Tax changes: FM proposes No Income Tax upto 12 Lakhs Rupees

29. 12.7 Lakhs to slaaried class due to 70,000 Standard Deduction: FM on new income tax threshold revisal

30. New Income Slabs

31. 0-4 Lakhs- Nil

4-8 Lakhs- 5%

8-12 Lakhs 10%

12-16 Lakhs 15%

16-20 Lakhs 20%

20-24 Lakhs 25%

Above 24 Lakhs 30%.

To Read the full text of the Finance Bill CLICK HERE

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