| Statutes No. | : | Budget 2025: No income-tax on income up to Rs. 12 lakh |
|---|---|---|
| Heading | : | Budget 2025: No income-tax on income up to Rs. 12 lakh |
Budget 2025: No income-tax on income up to Rs. 12 lakh
The Finance Minister, Smt. Nirmala Sitharaman, has presented the Union Budget 2025 in the Parliament. This marks the first full budget of the Modi Government in its third term, following the Lok Sabha elections in 2024. The budget comes at a critical juncture, as the economy faces challenges such as slowing growth, a depreciating rupee, rising inflation, and significant corrections in the stock market. Against this backdrop, there were widespread expectations that the Government would introduce tax cuts to boost liquidity, stimulate consumption, and strengthen economic activity. With the Union Budget 2025 now unveiled, here are the key proposals and measures introduced by the Government to address these pressing issues and chart a path toward sustainable growth.
| 1. | No income tax on income up to Rs. 12 lakh |
| 2. | No TCS on transactions related to the sale of goods to reduce compliance difficulties |
| 3. | The threshold to collect TCS on remittances under LRS increased from Rs 7 lakhs to Rs 10 lakhs |
| 4. | FM proposes to reduce compliance burden for small charitable trusts by increasing registration period form 5 yrs to 10 yrs |
| 5. | Presumptive taxation scheme proposed for Non-residents providing services to residents |
| 6. | The new income tax bill will carry forward the spirit of Nyaya in drafting, says FM |
| 7. | Jan Vishwas Bill 2.0 will be introduced to decriminalise over 100 offences |
| 8. | TDS limit under Section 194-I on rent increased from 2.4 lakhs to Rs. 6 lakhs |
| 9. | Deduction limit for senior citizens on interest income has been doubled from Rs. 50,000 to Rs. 1,00,000 |
| 10. | Time limit to file updated return increased to 4 years |
| 11. | Import of 35 additional capital goods for EV battery manufacturing would be exempt. |
| 12. | Cobalt powder, scrap of lithium-ion battery, lead and zinc would be fully exempt. |
| 13. | 9 more items added to duty-free inputs; no BCD on wet blue leather. |
| 14. | New Income-tax Bill will be introduced next week. |
| 15. | Custom tariff structure will be rationalised to promote exports and facilitate trade. |
| 16. | Revamped Central KYC registry will be rolled out in 2025. |
| 17. | 6 life-saving drugs brought under concessional 5% import duty |
| 18. | FDI increased from 75% to 100% for Insurance Sector. |
| 19. | Revised estimate of fiscal deficit is 4.8% of GDP |
| 20. | A nuclear energy mission for R&D on small modular reactors will be set up with an outlay of Rs. 20,000 crore. |
| 21. | The government will establish a Rs. 1 lakh crore Urban Challenge Fund to develop cities as growth hubs and enhance water and sanitation infrastructure. |
| 22. | 75,000 seats to be created in the next 5 years in Medical Colleges. |
| 23. | FM proposes to develop 50 tourist destination sites in the country in partnership with states. |
| 24. | Developing at least 100 GW nuclear capacity by 2047 is essential. |
| 25. | FM allocates Rs. 60,000 crores for the Marine Sector with a special focus on Andaman and Lakshadweep. |
| 26. | Investment and Turnover limits for all MSMEs will be enhanced 2.5 and 2 times, respectively. |
| 27. | A new Fund of Funds with a corpus of Rs. 10,000 crore will be established to invest in start-ups. |
| 28. | To boost credit to Micro industries, the government will provide customised credit cards with a limit of Rs 5 lakh. In the first year, 10 lakh such cards will be issued. |
| 29. | The loan limit under the Kisan Credit Card (KCC) scheme will be increased from Rs. 3 lakh to Rs. 5 lakh. |
| 30. | Credit guarantee cover to be enhanced for start-ups from Rs. 10 crore to Rs. 20 crore. |
| 31. | 50,000 Atal Tinkering Labs to be set up in Govt schools in 5 years. |
| 32. | A new scheme will be launched for 5 lakh women, SC, and ST first-time entrepreneurs to provide term loans of up to Rs. 2 crore over the next five years. |
| 33. | The Clean-Tech Mission will be launched to boost clean-tech manufacturing, focusing on solar PV, EVs, and batteries. |
| 34. | FM announces Social Security Scheme for Online Platform & Gig Workers. |
