Budget 2025, New Income Tax Slabs- The Union Budget 2025-26 was presented in the Parliament on 1 February 2025. This is the 8th consecutive time that Finance Minister Nirmala Sitharaman presented the budget. Budget 2025-26 emphasizes on important issues like tax policies, spending priorities and subsidies.
In a historic announcement, the Finance Minister said that income up to Rs 12 lakh will be tax-free if the person does not have special interest income. You can see the main highlights updates of Budget 2025 here.
Budget 2025 Key Highlights & Updates:
Now there will be no income tax on income up to 12 lakhs. The Finance Minister says that the new tax slabs and rates in the new system will be as follows, which will make income up to ₹12 lakh tax-free if the person does not have special interest income.
Budget 2025 Tariff rates:
After the seven tariff rates were removed in the 2023-24 Budget, 7 additional tariff rates will be eliminated in the 2025-26 budget. This reduction will result in only eight remaining tariff rates, one of which will be set at zero. Duty rates will remain largely unchanged, with only minor reductions for select items.
Budget 2025 Cess and surcharge: Cess and surcharge amendments-
The government plans to impose a maximum of one cess or surcharge on 82 tariff lines while exempting them from social welfare surcharge.
| Subject | Main Announcement |
| Electricity | Announcements for electricity distribution & Transmissions upgradations |
| Urban Development | 200 Day care cancer centers will be opened in district hospitals across the country including Bihar in the next three years |
| Expansion of medical education | 1.1 lakh new medical seats will be added in upcoming decade, an increase of 130% |
| PM Speed Power and Tourism | Providing data and maps to help private sector plan infrastructure |
| Footwear and Leather Sector | New policies implemented to increase productivity, quality and global competitiveness |
| Investment: The Third Engine of Growth | Empowered Anganwadi and support to 8 crore children under Poshan 2.0 scheme |
| IIT Infrastructure Expansion | Expansion of infrastructure in 5 IITs |
| Language and education | Indian Language Book Scheme” started, promotion of education in mother tongue |
| Food Processing Institute | A new food processing institute will be established in Bihar |
| Make in India mission | Promotion of industries under “National Manufacturing Mission” |
| New scheme for women | Term loan facility to 5 lakh women and new entrepreneurs |
| Credit Guarantee for Startups | Limit raised to ₹20 crore |
| New Urea Plant in Assam | Urea plant with annual production capacity of 12.7 lakh metric tonnes to be set up at Namrup, Assam |
| Kisan Credit Card Scheme | Short-term loans to 7.7 crore new farmers, fishermen and dairy farmers |
| Agrarian reform schemes | Emphasis on increasing agricultural productivity in 100 districts under “Dhanya Krishi Yojana”, 1.7 crore farmers benefited |
| Kisan Credit Card Limit | Kisan Credit Card Limit Increased from 3 Lakh to 5 Lakh |
What Else is Special in Budget 2025:
- Kisan Credit Card limit increased from ₹3 lakh to ₹5 lakh.
- New infrastructure in 5 IITs established after 2014, expansion of IIT Patna.
- 10,000 seats in medical colleges next year, 75,000 seats to increase in 5 years.
- ₹500 crore allocated for Centre of Excellence in Artificial Intelligence (AI).
- Social Welfare Scheme for Gig Workers.
- The philosophy of Jal Jeevan Mission has been extended till 2028.
- An “Urban Challenge Fund” of ₹1 lakh crore will be set up.
- Facility of new greenfield airports in Bihar besides Patna airport.
- Provision of ₹20,000 crore for private sector research and development (R&D).
- Development of 50 major tourist destinations, with special focus on sites associated with Buddha.
- Promoting the “Heal in India” initiative.
- FDI limit in insurance sector to be raised to 100% if entire premium is invested in India.
- New and simple KYC registration will be started.
- Customs duty reforms and rates rationalization to be done.
- Customs duty exemption on 36 life saving drugs, 5% duty on 6 drugs.
Direct and indirect tax reforms:
- New Income Tax Bill to be presented next week.
- The new Income Tax Bill will be simpler and closer to the current system.
- Reforming the personal income tax for the middle class.
- NIL tax on income up to ₹12 lakh.
- Changes in income tax slabs.
- TDS and TCS will be rationalized.
- TDS limit on rent raised from ₹2.4 lakh to ₹6 lakh.
- TDS limit for senior citizens raised from ₹50,000 to ₹1,00,000.
- TCS on foreign remittance for education purposes removed.
- Time limit for “updated returns” increased from 2 years to 4 years
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