Finance Minister Nirmala Sitharaman presented the Union Budget for 2025-26 on February 1, 2025, outlining key initiatives and fiscal measures aimed at fostering economic growth and development. The budget’s highlights are as follows:
Fiscal Estimates
- Total Receipts and Expenditure: The government’s total receipts (excluding borrowings) are projected at ₹34.96 lakh crore, while total expenditure is estimated at ₹50.65 lakh crore. TaxGuru
- Fiscal Deficit: The fiscal deficit is targeted at 4.4% of GDP, reflecting the government’s commitment to fiscal consolidation. TaxGuru
Taxation Reforms
- Income Tax Relief: Under the new tax regime, individuals with annual incomes up to ₹12 lakh are exempt from income tax. Revised tax slabs have been introduced for higher income brackets, while the old tax regime remains unchanged. TaxGuru
- TDS and TCS Adjustments: The threshold for Tax Deducted at Source (TDS) on interest for senior citizens has been increased from ₹50,000 to ₹1 lakh. Additionally, the annual limit for TDS on rent has been raised from ₹2.4 lakh to ₹6 lakh. TaxGuru
Agriculture and Rural Development
- Prime Minister Dhan-Dhaanya Krishi Yojana: A new scheme aimed at enhancing agricultural productivity and farmer welfare. TaxGuru
- Kisan Credit Card (KCC) Expansion: The budget proposes facilitating short-term loans of up to ₹5 lakh for 7.7 crore farmers, fishermen, and dairy farmers through the KCC scheme. TaxGuru
- Pulses Self-Reliance Mission: A six-year mission focusing on achieving self-reliance in pulses production, with special emphasis on Tur, Urad, and Masoor varieties. TaxGuru
- Makhana Board Establishment: A dedicated Makhana Board will be set up in Bihar to promote the cultivation and marketing of fox nuts, benefiting approximately 10 lakh individuals involved in Makhana farming. TaxGuru
Science, Technology, and Innovation
- Research and Development Allocation: An allocation of ₹20,000 crore has been made to implement a private sector-driven research, development, and innovation initiative. TaxGuru
- PM Research Fellowship: The government will provide 10,000 fellowships for technological research in premier institutions like IITs and IISc. TaxGuru
- Gene Bank for Crop Germplasm: A second gene bank, housing 10 lakh germplasm lines, will be established to ensure future food and nutritional security. TaxGuru
Export Promotion and Industry Support
- Electronics and EV Incentives: Exemptions will be granted for open cells used in LED/LCD TVs, looms for textiles, and capital goods for lithium-ion batteries used in mobile phones and electric vehicles. TaxGuru
- Maintenance, Repair, and Overhaul (MRO) Promotion: A 10-year exemption will be granted on goods used for shipbuilding and ships meant for breaking. Additionally, the time limit for the export of railway goods imported for repairs will be extended. TaxGuru
- Trade Facilitation Measures: A time limit has been set for the finalization of provisional assessments. A new provision allows for the voluntary declaration of material facts after clearance and duty payment, with interest but without penalty. Additionally, the Import General Customs Rules (IGCR) have been amended to extend the time limit to one year and allow for the filing of quarterly statements instead of monthly ones. TaxGuru
- Leather Goods Promotion: Wet blue leather will be fully exempted from basic customs duties, aiming to promote domestic consumption and enhance exports. TaxGuru
Support for Gig Workers
- Healthcare Benefits: Gig workers will gain access to healthcare benefits under the Pradhan Mantri Jan Arogya Yojana (PM-JAY), ensuring better support for their welfare. Financial Express
The Union Budget 2025-26 reflects the government’s commitment to fostering economic growth, supporting various sectors, and providing relief to taxpayers, with a focus on inclusivity and sustainable development.
