Budget 2025 Highlights: PDF Download, Key Takeaways, Important Points

Budget 2025 is expected to be presented on 1st Feb 2025. As the date approaches, citizens are getting more and more excited for the big changes from the government. This budget will focus on ‘Amrit Kaal’ and ‘Viksit Bharat’ and will try to grow and develop various sectors to make India a developed nation.

A big focus of Budget 2025 will be on reducing the fiscal deficit. The government also aims to streamline tax structures and reduce the burden of taxes on taxpayers. There will be relief for the taxpayer in terms of changes in the tax slabs under the new regime. It is expected that there might be changes in the tax slabs under the new regime, providing more relief to the individual taxpayers.  

Stay tuned for more comprehensive insights and key highlights of Budget proposals. The day of presentation of the Union Budget, we will post our analysis of major announcements and will upload the official Budget PDF.

Budget Expectations 2025

As the Union Budget 2025 nears, there’s a growing buzz about potential changes in Income Tax policies. The taxpayers are eager for some relief from the government 

Here’s a list of changes that taxpayers and Industry experts are expecting from the Budget 2025:

Reforms Under Section 80D:

As the health concerns for the individuals are increasing the government may increase the deduction limit under Section 80D from Rs. 25,000 to Rs. 50,000.

Incentives for Homeowners 

The government can increase the deduction limit on home loan interest unders Section 24(b) from Rs. 2 lakhs to Rs. 3 lakhs. This would promote homeownership and real estate development.

Increase in Limit Under Section 80C

The deduction limit under section 80C may be increased to Rs. 2,00,000 from Rs. 1,50,000 as it has remained unchanged since 2014. This will promote investments in tax saving FDs, PPF, LIC, etc.

Corporate Tax Adjustments 

With the dollar rising against the dollar, it is important for the government to support the Make in India initiatives. For the corporate sector, particularly new manufacturing units, the 15% concessional tax rate under Section 115BAB should be extended. This incentive was initially set to expire in March 2024 but should be extended to attract more investments in manufacturing, driving the pace of economic growth.

Production Linked Incentives for R&D

To foster innovation, the government might introduce new production-linked incentives for Research and Development (R&D) activities. These could include additional deductions for specified R&D expenditures based on certain criteria, such as increased turnover, employment generation, or capital investment.

Changes in Tax Slabs

The government should consider revising tax slabs to provide relief to middle-class taxpayers by potentially reducing the income tax rates for individuals earning up to Rs 15 lakh annually. This can increase the overall disposable income and boost consumption.​

Key Highlights of Budget 2024

Enhanced Limit of Standard Deduction Under New Regime

Under the new regime, the standard deduction for salaried individuals has been increased to Rs. 75,000 from Rs. 50,000. Similarly, a deduction on family pensions for persons with pension income has been increased to Rs. 25,000 from Rs. 15,000 if they file taxes under the new regime.

Tax Slabs Under New Regime

Under the New tax regime, the tax slab is revised as follows:

Corporate Taxes on Foreign Companies 

Corporate taxes are imposed on a company’s net income or profit. In the Budget 2024, Finance Minister Nirmala Sitharaman reduced the corporate tax on foreign companies from 40% to 35%. 

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