Here are the major updates from the Union Budget 2025 presented on February 1, 2025:
1. Income Tax Reforms
- Tax Exemption Increased: Individuals with taxable income up to ₹12 lakh will now pay zero tax under the new regime.
- Revised Tax Slabs: Tax rates have been reduced for higher income brackets to boost disposable income.
- Standard Deduction Hike: Increased to ₹75,000 for salaried individuals.
2. Agriculture & Rural Development
- High-Yield Crop Program: To support 17 million farmers with improved seeds and modern technology.
- Subsidized Farm Credit: Increased allocation for low-interest farm loans and irrigation projects.
3. Boost to Infrastructure & Investment
- Capital Expenditure Surge: Increased government spending on roads, railways, and urban development.
- Ease of Doing Business: Regulatory reforms and a new Investment Friendliness Index introduced.
4. Gig Economy & Employment
- Formalization of Gig Workers: New policies for social security, insurance, and healthcare benefits.
- Skill Development Programs: Special schemes for youth employment and startups.
5. Energy & Sustainability
- Nuclear Energy Push: Plan to generate 100 GW of nuclear power by 2047.
- Green Energy Investments: More incentives for solar and wind power projects.
6. Fiscal & Economic Goals
- Fiscal Deficit Target: Reduced to 4.4% of GDP to maintain economic stability.
- GDP Growth Focus: Policies aimed at achieving 7%+ growth rate.
These budget measures focus on taxpayer relief, infrastructure growth, employment, and sustainability. Let me know if you need more details on any specific sector!
Important Notes:
- Choice of Regime: Taxpayers still have the option to choose between the old and new tax regimes. It’s essential to compare both based on your individual financial situation.
- Deductions: The new tax regime offers fewer deductions compared to the old regime.
- Professional Advice: Tax laws can be complex. It’s always advisable to consult with a tax advisor for personalized guidance.
Overall, the Budget 2025 has made the new income tax regime more attractive, especially for middle-income individuals. The increased rebate limit and revised tax slabs are significant steps towards reducing the tax burden and promoting economic growth.
