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Budget 2025: Key Announcements and Detailed Analysis

Key Announcements and Detailed Analysis

Key Announcements and Detailed Analysis The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, marks a significant step toward economic growth, social welfare, and fiscal consolidation. With a focus on tax relief, agricultural reforms, manufacturing incentives, and digital infrastructure, this budget aims to balance economic expansion and social equity. Here’s a detailed breakdown of the key announcements and their implications.

  1. Income Tax Reforms: Relief for Middle-Class Taxpayers

One of the biggest highlights of Budget 2025 is the revision in income tax slabs under the new tax regime:

New Tax Regime (Post Budget 2025-26)

  • Zero to ₹4,00,000—No Tax
  • ₹4,00,000 to ₹8,00,000—5%
  • ₹8,00,001 to ₹12,00,000—10%
  • ₹12,00,001 to ₹16,00,000—15%
  • ₹16,00,001 to ₹20,00,000—20%
  • ₹20,00,001 to ₹24,00,000—25%
  • Above ₹24,00,000—30%

Old Tax Regime (No Changes Announced, for Individuals Below 60 Years of Age)

  • No income tax on annual incomes up to ₹2,50,000
  • ₹2,50,001 to ₹5,00,000—5%
  • ₹5,00,001 to ₹10,00,000—20%
  • Above ₹10,00,000—30%

Other Key Tax Announcements:

  • The proposal to allow two self-occupied properties to be valued at nil for tax purposes: Previously, only one self-occupied property could be exempt. Key Announcements and Detailed Analysis  Now, individuals owning two self-occupied properties can avail of the same benefit, reducing their tax burden.
  • The TDS threshold on rent has been raised to ₹6 lakh: Key Announcements and Detailed Analysis This ensures that tenants paying rent below ₹6 lakh annually will not have to deduct TDS, simplifying compliance for both tenants and landlords.
  • The TCS threshold limit on LRS remittances has been increased from ₹7 lakh to ₹10 lakh: This benefits individuals making overseas remittances for education, travel, or investment, reducing their tax deduction at source.
  • The government has extended the time limit to file updated tax returns from two years to four years: This allows taxpayers additional time to rectify errors or omissions in previously filed returns, reducing the chances of penalties and legal disputes.

Implications:

These measures provide significant relief for middle-class taxpayers, encourage real estate investments, and simplify tax compliance. The extension of the updated tax return timeline ensures better compliance and reduces litigation risks.

  1. Agriculture & Rural Development: Empowering Farmers
  • Dhan Dhanya Krishi Yojana: Key Announcements and Detailed Analysis  A new agricultural scheme covering 100 districts, benefiting 1.7 crore farmers. It focuses on increasing productivity, modernizing agricultural practices, and reducing migration by providing rural employment opportunities.
  • Kisan Credit Card Loan Limit Increased from ₹3 lakh to ₹5 lakh: This gives farmers easier access to funds for purchasing seeds, fertilizers, and machinery, improving agricultural efficiency.
  • National Mission for Edible Oilseeds: The government aims to reduce import dependency by increasing domestic production of edible oilseeds, promoting self-sufficiency in the sector.
  • Atmanirbharta Mission for Pulses: A six-year plan to achieve self-reliance in pulses production, ensuring a steady supply and stabilizing market prices.
  • Financial Support for the Western Kosi Canal Project in Bihar: This infrastructure development project will enhance irrigation facilities, boosting agricultural productivity in the region.
  • Makhana Board Established in Bihar: This initiative supports value addition and processing of makhana (fox nuts), benefiting local farmers and increasing export potential.

Implications:

These measures will boost agricultural productivity, ensure food security, and improve rural employment. The financial support will help farmers transition to sustainable and profitable farming models.

  1. Manufacturing & Industry Growth: ‘Make in India’ Boost
  • Toy Manufacturing Scheme: Key Announcements and Detailed Analysis India aims to become a global hub for toy manufacturing by developing clusters and improving skills. This initiative will promote domestic production and reduce reliance on Chinese imports.
  • Footwear & Leather Industry Scheme: This scheme is expected to generate employment for 22 lakh people and boost exports to ₹1.1 lakh crore by enhancing production capabilities and improving global competitiveness.
  • Manufacturing Mission: Focused on solar PV cells, electrolysers, and grid-scale batteries, supporting India’s transition to renewable energy sources.
  • Deloitte’s CleanTech Focus: This initiative aims to increase manufacturing GDP contribution from 16% to over 20%, helping India become a manufacturing powerhouse.

Implications:

The focus on domestic manufacturing will reduce dependency on imports, create jobs, and strengthen India’s position in global trade.

Conclusion: A Balanced Budget with a Growth-Oriented Approach

Budget 2025 strikes a balance between fiscal prudence and economic expansion. With a focus on taxation, agriculture, MSMEs, infrastructure, and digital economy, the budget lays the groundwork for a resilient and prosperous India. Key Announcements and Detailed Analysis The successful implementation of these policies will determine India’s economic trajectory in the coming years.

Sources : https://economictimes.indiatimes.com/wealth/tax/income-tax-budget-2025-live-updates-tax-slab-fy25-26-new-old-tax-regime-standard-deduction-sec-80c-87a-rebate-nirmala-sitharaman-union-budget-announcements-1-february-2025/liveblog/117798057.cms?from=mdr

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