The much-awaited Union Budget 2025 by Finance Minister Nirmala Sitharaman, was presented on February 1, 2025, which focused on a new landmark for India's economic trajectory to make growth all-inclusive, which is aimed at empowering the poor, the youth, the farmer, and women. In a bid to strengthen long-term sustainable growth through taxation, infrastructure, agriculture, and digitalisation, this budget comes with a strong reform measure in these key sectors. Read on to find out the major highlights and key takeaways from Budget 2025.Budget 2025: Download Budget 2025Click on the link to download Finance Bill 2025: Download here Click on the link to download the Budget 2025 speech: Download here1. Direct Tax ProposalsIntroduction of a New Tax BillA new Income Tax Bill will be introduced in this week, which aims to replace the existing Income Tax Act of 1961. This bill is designed to simplify tax compliance and reduce the complexity of current tax laws by up to 60%.Changes in Tax Structure Under the New RegimeUnder the New tax regime, the tax structure is revised as follows:Income Tax SlabsTax RateUpto Rs.

The Union Budget is presented every year by Finance Minister Nirmala Sitharaman on February 1st. This budget will be the second Budget of the Modi government’s third term and Nirmala Sitharaman’s eighth consecutive budget presentation, which includes one interim budget. In this article, we will answer your questions about the date, time, and where to watch the Budget. Usually, the budget session is conducted in two parts. For the upcoming financial year 2025-2026, the first session will last until February 13th,2025.

The Union Budget is presented every year in India. It has significant importance for taxpayers as it defines the financial strategies to be adopted by the government, which directly impacts individuals' financial strategies. It is led by the Finance Minister, and it outlines allocations for various sectors such as infrastructure, healthcare, and education, thereby influencing the tax structure to generate revenue for these expenditures. Let's delve into its complexities and understand its implications on personal finances.Understanding the Union BudgetThe Union Budget is the government's comprehensive financial plan for the upcoming fiscal year. Led by the Finance Minister, it allocates funds for various sectors, aiming to foster economic growth and development.

Public Provident Fund (PPF) is a government backed savings scheme, offering guaranteed returns that are tax exempt. The interest rate remains unchanged at 7.1% per annum for Q4 FY 2025-26. With sovereign security, compound interest, and an EEE tax benefit, PPF remains one of the safest investment options for retirement and tax planning in India. Key Highlights Interest Rate: 7.1% p.a. (FY 2025–26).Investment Limits: Min Rs. 500, Max Rs.

Surcharge is tax calculated as a percentage of income tax already payable by the taxpayer. Usually, high income taxpayers are subjected to surcharge provisions under the Income Tax Act. Those taxpayers who have just crossed the threshold limits, thereby liable to pay surcharge can claim marginal relief. Key HighlightsFor individuals, surcharge rates are as follows: 5% for income between 50 lakhs and 1 crore, 15% for income between 1 crore to 2 crore, 25% for income between 2 crore to 5 crore, and 37% for income over 5 crore (this rate does not apply to taxpayers opting for new regime)Surcharge on Income TaxIncome tax surcharge is an additional charge payable on income tax. It is an added tax on the taxpayers having a higher income inflow during a particular financial year.Surcharge Rates for Individuals Under the Old Regime and New RegimeNet Taxable Income limitSurcharge Rate on the amount of income tax (under old tax regime)Surcharge Rate on the amount of income tax (under new tax regime)Less than Rs 50 lakhsNilNilMore than Rs 50 lakhs ≤  Rs 1 Crore10%10%More than Rs 1 Crore ≤  Rs 2 Crore15%15%More than Rs 2 Crore ≤  Rs 5 Crore25%25%More than Rs 5 Crore37%25%Note:Surcharge for AOPs having only companies as its members to 15%. It is applicable to AOPs whose total income during the financial year exceeds Rs 1 crores. Surcharge on Capital GainsSurcharge has been capped at 15% on dividend income and Capital gains covered under section 111A, 112 and 112A.IllustrationLets understand this concept through an example:Mr.

The presumptive taxation scheme allows taxpayers with business or professional income to declare their profits as a percentage of turnover. Under Section 44AD, taxpayers with business turnover not exceeding Rs. 2 Cr can report their taxable business income as 8% of their turnover. But if the gross receipts received in cash are less than 5% of the total receipts, then taxpayers with business turnover up to Rs. 3 Cr can disclose taxable income at 6% of their turnover. Under Section 44ADA, taxpayers with professional income can report their taxable income at 50% of their gross receipts, if their gross receipts is within Rs.

A partnership firm shares its profits among partners based on the terms agreed in the partnership deed. Depending on their role, partners may be working partners, who invest and actively manage the business, or silent partners, who only contribute capital. The remuneration paid, whether as salary, bonus, commission, or interest, is determined by the remuneration clause in the deed and is subject to specific tax rules under Section 40(b) of the Income Tax Act.What is Partner’s Remuneration?A partner’s remuneration is the salary, bonus, or commission paid to a partner by a partnership firm. Similar to regular employees, partners receive monthly payments for their contribution to the firm. Partners receive the following compensation for their work:RemunerationInterest on Capital InvestedShare of ProfitWhat is TDS on Partner's Remuneration?As per section 194T, wherein the TDS will be required to be deducted for any salary, remuneration, bonus or commission payments made to a partner by a firm at the rate of 10% if payment in a financial year exceeds Rs.

Gains arising from the sale of immovable property, such as land, residential flats, or commercial buildings, are taxable under the head of "Capital Gain" of the Income Tax Act 1961. The applicable tax rate on such gain depends on classifying the property into long-term and short-term capital assets. Property held for more than 24 months qualifies as long-term capital assets; otherwise, it is treated as short-term capital assets. Short-term capital gain is taxed at the taxpayer's slab rate, while long-term capital gain is taxed either at 20% with indexation or 12.5% without indexation, based on the purchase and sale date of the property.This article explains in detail, the capital gains implications on sale of property, both short term and long term.Long Term and Short Term Capital Assets Capital Gains are divided into two categories:Long-term Capital AssetIf you sell the property after holding it for more than 24 months, they are categorized as long term capital assets.The profit will be classified as long-term capital gains (LTCG). Short-term Capital AssetIf the property is sold within 24 months of its acquisition,  they are categorized as short term capital assets. Gains from transfer or such assets are classified as short-term capital gain (STCG). Long Term and Short Term Capital Gain Tax Rate on PropertiesThe tax rate on capital gains from the sale of property is determined based on the holding period of the asset i.e., long-term capital asset or short-term capital asset.The tax rate is as follows:Short-term Capital Gain Tax Rates on sale of PropertyProperty sold within 2 years of purchase are classified under short term and Taxed at applicable slab rates.Long-term Capital Gain Tax Rates on sale of PropertyProperties sold after 24 months of purchase are taxed as long term capital gains, at the rate of 12.5% without indexation.Note: If the property was acquired before 23rd July 2024 and sold after the said date, the taxpayer can compute tax either at 20% with indexation or 12.5% without indexation, whichever is beneficial to the taxpayer.  The table below is a summary of the tax rate applicable to property:Types of AssetsHolding PeriodSTCG Tax %LTCG Tax %Land, Building, Residential Property, Real EstateUp to 24 Months= STCGMore than 24 Months = LTCG As per Tax Slab of Taxpayers12.5% Without Indexation, OR  20% With Indexation, which ever is more beneficialCalculation of  Capital GainsShort-term Capital Gain/Loss from Sale of PropertyThe following table explains the calculation of Short Term capital gain on sale of property:ParticularAmountSale ConsiderationXXXXLess : Cost of AcquisitionXXXXLess: Cost of ImprovementXXXXLess: Transfer ExpensesXXXXShort-Term Capital GainXXXXIllustrationShort-term capital gains on sale of property is taxed as per the income tax slab rates applicable to the individual. For instance, if the short-term capital gain is Rs 6 lakh and the person falls in the 30% tax bracket, then he/she has to pay 31.20% on Rs 6 lakh, i.e.

Form 10-IEA is a declaration that helps taxpayers continue with the old tax regime if they prefer its benefits over the new one. It acts as a formal choice for those who want to retain deductions and exemptions, ensuring flexibility in taxation. Filing this form allows individuals to manage their taxes according to their financial planning needs.Key HighlightsMandatory for taxpayers with business or professional income (filing ITR-3 or ITR-4). Others can select “opt-out” in their ITR.Must be submitted online before the ITR filing deadline.Acknowledgement: After filing, a Transaction ID and Acknowledgement Number are generated, which must be mentioned while filing the ITR.Replacement: Replaces the earlier Form 10-IE, which is now discontinued.What is Form 10-IEA?Form 10-IEA is useful for individuals or HUFs to continue utilizing the old tax regime in the present financial year. It was presented by the Central Board of Direct Taxes.

The Income Tax Act not only provides provisions for imposing taxes on the income of citizens but also offers number of ways through which one can claim deductions and rebates. The deductions are allowed based on the way the taxpayers spend their income.One such deduction offered to salaried individuals is the standard deduction. You must know that salaried individuals and pensioners can claim a certain amount under standard deduction by default without any investment or spending of money by the taxpayers. The provision was taken down for a number of years and was re-introduced during the Budget announcement in 2018.What is Standard Deduction?The standard deduction is a fixed amount that taxpayers can subtract from their gross income to reduce their taxable income. It is available to salaried individuals and pensioners without requiring proof or documentation. Standard Deduction under New & Old Tax RegimeThe standard deduction available for salaried individuals under both the regimes for the FY 2025-26 (AY 2026-27) is as follows:Old Tax Regime: Rs.