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Budget 2025 LIVE Event
Union Budget 2025 Highlights
Follow all the live Budget 2025 updates here
Budget 2025 Expectations for Salaried Individuals
Budget 2025 Expectations From Industries

Budget 2025 Live Updates: No Tax Upto Income of 12 Lakh Rupees Under New Tax Regime

By Mohammed S Chokhawala

Updated on: Feb 1st, 2025

8 min read

FM Nirmala Sitharaman concluded the Union Budget 2025-26 with major relief for the middle class, announcing zero income tax on annual earnings up to ₹12 lakh. Additionally, the TDS exemption limit on rent was increased from ₹2.40 lakh to ₹6 lakh, benefiting small taxpayers.

Budget 2025 LIVE Event

Union Budget 2025 Announced by	Smt Nirmala Sitharaman
Submitted to	Parliament of India
Budget 2025 date	1st February, 2025 (Saturday)
Budget 2025 time	11:00 AM
Party	Bharatiya Janata Party

Union Budget 2025 Highlights

The new income tax slabs for new tax regime introduce a progressive structure, starting with nil tax for incomes up to ₹4 lakh, followed by 5% for ₹4-8 lakh, 10% for ₹8-12 lakh, and 15% for ₹12-16 lakh. Higher slabs include 20% for ₹16-20 lakh, 25% for ₹20-24 lakh, and 30% for incomes above ₹24 lakh.
A National Institute of Food Technology will be established in Bihar to increase food processing and employment in the eastern part of India. A Makhana Board will be established to enhance production, processing, and marketing, and FPOs will train and assist farmers. A six years Pulses self-sufficiency programme will be undertaken on tur, urad and masoor.
Expansion of infrastructure in five IITs, including IIT Patna is on the agenda. Greenfield airports will be developed in Bihar, as will the expansion of Patna Airport and Bihta Brownfield Airport.
The FDI limit for insurance will be raised from 74% to 100% for companies investing premiums within India with simplified investment regulations.
A reformed UDAN scheme will provide regional connectivity to 120 new destinations, including support for helipads, small airports, and transport in hilly and northeast districts.
The Western Kosi Canal ERM project will be provided with financial assistance. Farmers of Mithilanchal will be benefited. PM Dhan Dhanya Krishi Yojana will enhance productivity in 100 low-yielding districts, where 1.7 crore farmers will be covered.
The interest subvention under Kisan Credit Card shall be enhanced from ₹3 lakh to ₹5 lakh.
A ₹10,000 crore Fund of Funds for Start-ups; customized credit cards with a ₹5 lakh limit for micro-enterprises.
Medical Education is going to expand by 10,000 additional seats next year and 75,000 over five years. All district hospitals will have daycare cancer centers in the next three years.
Identity cards and e-Shram registration for 1 crore gig workers. A new scheme to provide term loans up to ₹2 crore over five years to 5 lakh women, SC/ST first time entrepreneurs.

Also read: Economic Survey 2024: Highlights, Summary, PDF Download

Follow all the live Budget 2025 updates here

01 Feb 2025, 12:20 PM

FM announced tax benefits, stating that individuals earning ₹18 lakh annually will save ₹70,000 in taxes, while those with ₹25 lakh income will benefit by ₹1,10,000. The new tax slabs include a 20% tax on income between ₹16-20 lakh, 25% on ₹20-24 lakh, and 30% on earnings above ₹24 lakh.

01 Feb 2025, 12:18 PM

Democracy, Demography and Demand are key pillars
NIL tax slab to be raised to 12 lakhs other than SI like LTCG

01 Feb 2025, 12:17 PM

New tax regime

0 to 4 lakh - nil
4 lakh to 8 lakh - 5%
8 lakh to 12 lakh - 10%
12 lakh to 16 lakh - 15%
16 lakh to 20 lakh - 20%
20 lakh to 24 lakh- 25%
Above 24 lakh - 30%

01 Feb 2025, 12:10 PM

Vivad se Vishwas Scheme received a great response wherein 33000 taxpayers availed to settle discount
33,000 taxpayer utilized the VSVS scheme to settle disputes

01 Feb 2025, 12:09 PM

Exempt withdrawals from NSS on after August 2024
No tax on self occupied value
Presumptive taxation scheme to be introduced for Non-residents providing services to resident companies (select companies / sectors will be covered) not a blanket provision that can be availed by all non-residents
Extension of incorporation of startup- 5 years to allow benefit, to be incorporated before 1st April 2030

01 Feb 2025, 12:07 PM
Personal income tax reforms

TDS & TCS rationalization
1. reduction in rates & threshold. Limit to be increased
2. TDS Limit for senior citizen interest increased to 1lac
3. TCS limit on remittance under LRS is increased to 10lac from 7lacs
4. removal of TCS on remittances for educational purpose. If remittance is done out of loan taken from financial institution.
5. Higher TDS only on non PAN cases.

01 Feb 2025, 12:04 PM

Direct Tax:
Taxation reforms aims for new income tax bill with same spirit of ‘nyay’, as a means to achieve good governance

01 Feb 2025, 12:02 PM

New Income Tax Bill to be clear and direct in text - close to half of present law in chapter and verse, thus making ir simpler to understand, leading to tax certainty and lesser disputes
Simple to understand for taxpayers and tax litigators

01 Feb 2025, 12:01 PM

Time limit for use of imported goods to be extended from 6 month to 1 year

01 Feb 2025, 12:00 PM

Time limit for provisional assessment - of 2 years, extendable by a year for finalizing assessment

01 Feb 2025, 11:58 AM

Exempt crust leather from 20%
Leather sector to be fully exempt for value addition
BCD on Frozen fish paste reduced from 30% to 5%

01 Feb 2025, 11:55 AM

Customs:
Remove 7 tariffs rates, only 8 to remain after this including 0 rate
Levy not more than 1 cess or surcharge. Social welfare tariff surcharge to be exempted.
36 life savings drugs & medicines to be fully exempt from BCD.
6 life savings medicines to be included in full exemption in concession in BCD for manufacturers producing these medicines.
37 more medicines along with 13 new patient assistance program considered for duty concession.
manufacture of Lithium ion battery to be boosted on account of the proposed duty concession.

01 Feb 2025, 11:52 AM

Fiscal policy - to beat fiscal deficit each year, debt remains on declining state
Revised estimated - recipets - 31.47 lakh cr, net tax receipts
Fiscal deficit is 4.8% of GDP
Net Tax Receipts are about 28.37 lakh crore
Budget Receipts - 34.6
Budget expenditure - 50.6 lakh crore

01 Feb 2025, 11:50 AM

Simplification of KYC process - new scheme to streamline the process in 2025 (edited)
Company mergers and fastrack mergers to be made simpler
Bilateral investment treaty - to encourage sustained foreign investment - made more investment friendly
Ease of doing business - regulation up with global policy development and technology
Investor Friendliness of States to be launched
Four specific measures, high level committee, recommendations within a year, trust based economic government and inspection and compliances

01 Feb 2025, 11:47 AM

New income tax bill to be introduced next week

01 Feb 2025, 11:47 AM

Investing in Innovation - Allocating 20000 crores
PM Research fellowship = 10,000 fellowship to be provided in IIT and IISc (edited)
Gene banks will be set up.
National Geo Spatial Mission - to facilitate modernization of land records
Gyaan Bharat Mission - conservation of manuscript heritage
National Repository to be set up for knowledge sharing
Exports - export promotion mission to be setup -facilitate easy access to funds, non-tariff measure in overseas market
Digital public infrastructure to be setup for trade documentation (edited)
Bharat Trade Net for international trade will be set up as a unified platform
National Framework to be set up to enhance GCC in Tier 2 cities
reforms as the fuel for convenience of taxpayers - faceless, faster returns, viwad se vishwas scheme,
FDI limit for insurance increased from 74 to 100%

01 Feb 2025, 11:44 AM

Medical Tourism and Heal in India with partnership from private sector
It aims to carry 4cr additional passenger in next 10 years

01 Feb 2025, 11:43 AM

Top 50 tourist destination sites to be developed - lands by states
Hotels to be included in infrastructure
Streamlined E-VISA along with visa free waiver to certain groups

01 Feb 2025, 11:42 AM

Greenfield airport in Bihar!! Expansion of Patna airport
affordable of mid income housing - 40000 units will be completed in 2025
PM Gati Shakti for furthering Public Private Partnerships providing access to maps

01 Feb 2025, 11:40 AM

UDAAN regional connectivity schemes for speedier travel
UDAAN regional connectivity have benefitted 1.5 crore people
UDAAN regional connectivity scheme- modified will be launched to enhance regional connectivity
Aiming for 4 crore additional passenger in next 10 years

01 Feb 2025, 11:39 AM

Ship building financial assistance policy to address cost disadvantage
Maritime development fund with corpus of 25,000 crore to be setup for distributed support & promote competition

01 Feb 2025, 11:37 AM

Additional borrowing allowed to states in power sector
Nuclear Energy aims to produce 100 giga watts by 2047

01 Feb 2025, 11:35 AM

Public infrastructure to have outlay of 1.5 lakh crore, thus providing interest free loan for states for capital expenditure
Since 2015 16000 households have received tap water connections
Jal Jeevan mission - since 2019 - to achieve 100 % commission - extension till 2028
Jal Jeevan mission - extended till 2028 to achieve 100% coverage
Urban sector reforms - Urban challenge fund - 1 lakh crore- to develop cities and water sanitisation
A 1.5 lakh crore for 50 year interest free loans will be provided for states for capex.

01 Feb 2025, 11:33 AM

Public Private Partnerships
Each ministry to come up with PPP proposal.
Outlay of 1.5 lakh crore is proposed as interest free loans for a 50 year period for the states for infra development in states.

01 Feb 2025, 11:31 AM

Gig workers on online platforms
ID cards to be introduced
Health care in PM Arogya Yojana
Benefits 1cr gig workers

01 Feb 2025, 11:30 AM

A scheme for urban upliftment to be set up to help improve the earning of urban worker
Social Security Scheme for welfare of online platform workers
PM Svanidhi scheme will be revamped with UPI linked credit card with Rs. 30,000 limit.

01 Feb 2025, 11:29 AM

Medical education - 1.15 UG and PG seats in 10 years aiming for 130% increase
10000 seats to be added next year 75000 setas in next 5 years
day care and cancer centers in all district hospitals in next 3 years - 200 centers in 2025-26

01 Feb 2025, 11:27 AM

Expansion of capacity in IIT schemes - in 23 IITs, an increase of 100% from 65,000 in last 10 years.
Additional infrasture will be created in 5 more IITs to facilitate education
IIT patna will also be expanded
Three centers of excellence in AI for education to be added with total outlay of 5000 crores

01 Feb 2025, 11:25 AM

For the toys sector, the government will implement a scheme to make India a global manufacturing hub
Broadband connectivity to be provided to all govt secondary schools
Bhartiya Bhasha Viksit Scheme to implement education in India languages to help students understand subject matter better

01 Feb 2025, 11:23 AM

Suction Anganwadi Potion 2.0 to be implemented for 1 crore mothers, 20 lakh girls in specific areas

01 Feb 2025, 11:22 AM

New scheme for 5 lakh women, SC, ST and first time time entrepreneurs, aiming to provide term loans upto 2 cr for 5 years.
In the sector of food processing, FM aims to establish national institute of food tech, entrepreneurship and management in bihar
A Focus Product Scheme for footwear and leather products introduced, expected to create employment opportunities for 22 lakh people.
National manufacturing mission to be set up for furthering make in India.

01 Feb 2025, 11:17 AM

MSME is the second engine of the economy 5.7crores, with over 1 crore registered
MSME responsible for 45% of exports
MSME custom credit cards to be provided with a limit of 5 lakhs
10 lakh credit cards to be provided
Credit Guarantee fund to be increased from 5 crore to 10 crore for micro enterprises

01 Feb 2025, 11:15 AM

KISAN credit cards to be provided for 7.74 crore farmers and fishermen

01 Feb 2025, 11:14 AM

Viksit Bharat Encompasses:

Zero poverty
100% quality, good school education
Access to high quality, affordable and comprehensive healthcare
100% skilled labour with meaningful employment
70% women in economic activities
farmers making India the food basket of the world

01 Feb 2025, 11:13 AM

Makhana board - Bihar to improve production and marketing on Makhana

01 Feb 2025, 11:12 AM

Six-year mission for Atmanirbharta will be implemented
Comprehensive program for consumption of vegetable and fruits
Institutional mechanisms for FPO and corporations will be set up

01 Feb 2025, 11:10 AM

FM aims to improve employment opportunities in rural areas stating “migration is an option, not a requirement”

01 Feb 2025, 11:08 AM

Prime Minister Dhan Dhanya Krishi Yojna aims to cover 100 districts to:

Enhance agriculture productivity
Improve irrigation facilities
Long term & short term credit facilities

01 Feb 2025, 11:06 AM

Investing in economy - 4 main pillars are infrastructure, agriculture and MSME, investments and exports

01 Feb 2025, 11:05 AM

"Aspirations for Viksit Bharat inspires us, our economy is the fastest growing economy", Says FM Sitharaman

01 Feb 2025, 11:03 AM

Union Budget 2025 commences

01 Feb 2025, 11:02 AM

The Union Cabinet, led by Prime Minister Narendra Modi, approved the 2025 Budget on Saturday before its presentation in Parliament.

01 Feb 2025, 10:46 AM

Union Home Minister Amit Shah arrives at Parliament ahead of the tabling of the Union Budget 2025

01 Feb 2025, 10:43 AM

PM Modi arrived for the Cabinet meeting alongside Finance Minister Nirmala Sitharaman to finalize the Union Budget ahead of its presentation.

01 Feb 2025, 10:29 AM

Finance Minister Nirmala Sitharaman will present her 8th Budget using a digital tablet housed in a 'bahi-khata' pouch, continuing the tradition she introduced in 2019

01 Feb 2025, 10:26 AM

FM Nirmala Sitharaman is wearing a Madhubani art saree gifted by Padma awardee Dulari Devi, whom she met during a credit outreach at Mithila Art Institute. Devi requested FM to wear it as a tribute to Madhubani Art.

01 Feb 2025, 10:18 AM

Union finance minister Nirmala Sitharaman arrives at the Parliament, meets President Droupadi Murmu

Budget 2025 Expectations for Salaried Individuals

The Government is expected to revise the tax slabs under the new regime to provide relief for the taxpayers and increase their disposable income. The expected revision to the tax slabs is as follows:

Increase in Basic Exemption Limit: The basic exemption limit is expected to be increased from to around Rs. 3 lakhs to Rs. 5 lakhs, reportedly, thus aiming to increase disposable income for tax payers and subsequently spur consumer spending.
Revision of Tax Slabs for Higher Incomes: It is proposed that the threshold for the 30% tax slab, may be increased from Rs. 15 lakhs to Rs. 20 lakhs.
Introduction of New Tax Slab: A proposal also suggests introducing a 25% tax slab for income between Rs. 15 lakhs and Rs. 20 lakhs.
Increase in Standard Deduction: The standard deduction is also expected to increase from Rs. 75,000 to Rs. 1,00,000 under the new regime.
Revision in 80C Limit: It is also expected that the government may increase the limit under Section 80C from Rs. 1,50,000 to Rs. 2,00,000, which has remained unchanged since 2014 despite rising inflation.
Revision in 80D Limit: With rising healthcare costs, the deduction limit for medical insurance premium under Section 80D is expected to increase. Additionally, extending these benefits to the new tax regime would enhance access to healthcare.

Budget 2025 Expectations From Industries

With the Union Budget 2025 on the horizon, various industry sectors have outlined their expectations, aiming for transformational growth and long-term sustainability. Key proposals to revive industries, spur innovation, and ensure inclusive economic development target everyone from real estate to agriculture.

Real Estate: The real estate sector's expectations for Budget 2025 focus on revitalising affordable housing, improving regulations, and boosting demand. Key proposals include increasing tax deduction limits for home loan interest, reinstating the Credit-Linked Subsidy Scheme under PMAY, and, most importantly, granting industry status to real estate. Expanding rental housing programs, reducing individual tax rates, and improving rental affordability are prioritised. Additionally, the sector seeks centrally managed land allocation for affordable housing, higher price limits for affordable homes in expensive cities, and tax benefits for REIT investments to enhance growth and accessibility.
Healthcare: The healthcare sector anticipates the Union Budget 2025 to focus on accessibility, affordability, and innovation. Increasing healthcare spending to 2.5% of GDP is critical for strengthening infrastructure in underserved areas. Reduced GST on health insurance premiums and hospital supplies, alongside tax incentives for private sector investments in modernising facilities and building rural hospitals, are key demands. Enhanced allocation for the PMJAY scheme to tackle rising medical costs and fostering innovation to reduce reliance on imported medical devices are also prioritised. Additional measures like discount cards for medical accessories and reduced GST for senior citizens aim to make healthcare more affordable.
Green Energy: The green energy and sustainability sector has high expectations from Budget 2025, focusing on advancing India’s transition towards a net-zero economy. Significant investments in renewable energy installations, particularly solar and wind projects, are anticipated to accelerate this shift. Enhanced support for rooftop solar systems, open access solutions, and green hydrogen initiatives is expected to play a key role in optimising energy costs and boosting industrial competitiveness. With India’s goal of achieving net-zero emissions by 2070, the budget will likely prioritise expanded funding for clean energy solutions, driving sustainable growth and environmental resilience.
Automotive: The automotive sector hopes for Budget 2025 to accelerate growth and innovation. A key expectation is support for the electric vehicle (EV) ecosystem, including expanding charging infrastructure and addressing GST disparities that hinder widespread EV adoption. Simplifying the GST structure for various vehicle classes and components is crucial to reducing costs and enhancing affordability. Measures to boost supply chains by easing trade barriers, promoting local manufacturing, and improving infrastructure are anticipated. Additionally, the industry seeks a favourable tax framework and a re-evaluation of lengthy product development cycles to stay competitive and meet evolving market demands.
Employment: There are expectations that the upcoming budget will focus on supporting startups and MSMEs in generating employment. In line with this, the Confederation of Indian Industry (CII) has urged the government to establish a high-level task force to promote large-scale mass manufacturing, creating jobs for low-skilled workers. Recognising India’s demographic dividend as a key opportunity for economic growth, CII emphasised the need to focus on employment generation while improving productivity. Additionally, CII recommended an integrated National Employment Policy to consolidate various employment-generating schemes across ministries and states.
Agriculture: The agricultural sector’s expectations emphasise the need for a comprehensive program to improve crop yield and address productivity gaps, particularly in seed development. There is a strong focus on fast-tracking the adoption of digital agricultural practices, thus allowing farmers to reduce costs, enhance the quality, as well as the quantity of their yield and secure better prices for their produce. Additionally, incentivising research into eco-friendly solutions and agri-tech innovations, such as AI-driven pest control, soil health monitoring, and blockchain-enabled supply chains, is crucial. A supportive policy framework encouraging private sector participation in agriculture through tax breaks, grants, and favourable regulations would also attract much-needed investments.

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About the Author

Mohammed S Chokhawala

Content Writer

I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Read more

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