Image Source : PTI Finance Minister Nirmala Sitharaman
Budget 2025: Finance Minister Nirmala Sitharaman is delivering her eighth consecutive Union Budget, a record achievement. She presented the budget using a digital tablet encased in a traditional ‘bahi-khata’ style pouch. She announced several announcements, including hiking the income tax exemption limit to Rs 12 lakh per annum under the New Tax Regime, setting up of a Makhana Board in Bihar and 36 Lifesaving drugs and medicines to be added to the list of medicines fully exempted from Basic Customs Duty. Here are the key highlights of the Union Budget 2025.
Key highlights of Union Budget 2025:
Income Tax relief
In this Budget govt has announced that there will be No Income Tax payable upto income of Rs 12 lakh (i.e. average income of Rs 1 lakh per month other than special rate income such as capital gains) under the new regime.
For the Salaried Class, No Income Tax is applicable till an annual income of Rs 12.75 lakh, due to the standard deduction benefit available to the salaried class of Rs 75,000.
Key Announcements
The government will undertake a ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ in partnership with states. This scheme will cover 100 districts with low producRvity, moderate crop intensity and below-average credit parameters. It will help 1.7 crore farmers.
Govt will now launch a 6-year “Mission for Aatmanirbharta in Pulses” with a special focus on Tur, Urad and Masoor.
Kisan Credit Cards (KCC) facilitate short-term loans for 7.7 crore farmers, fishermen, and dairy farmers. The KCC loan limit will be enhanced from Rs 3 lakh to Rs 5 lakh for loans under the Modified Interest Subvention Scheme.
A comprehensive multi-sectoral ‘Rural Prosperity and Resilience’ programme will be launched in partnership with states.
A new scheme for the socio-economic upliftment of Urban Workers will be implemented to help them improve their incomes, have sustainable livelihoods and a better quality of life.
Govt will arrange for Gig Worker’s identity cards and registration on the e-Shram portal. Gig workers will be provided healthcare under PM Jan Arogya Yojana. This measure is likely to assist nearly 1 crore gig-workers.
SWAMIH Fund 2 will be established as a blended finance facility with contributions from the Government, banks and private investors. This fund of ₹15,000 crore will aim for expeditious completion of another 1 lakh units.
To improve access to credit, the Credit Guarantee Cover will be enhanced,
In the Tourism sector, the top 50 tourist destination sites in India will be developed in partnership with states through a challenge mode.
To help MSMEs achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively.
‘Export Promotion Mission’ to be set up which will be driven jointly by the Ministries of Commerce, MSME, and Finance. It will facilitate easy access to export credit, cross border factoring support, and support to MSMEs.
The revamped Central KYC Registry will be rolled out in 2025 for simplifying KYC process. We will also implement a streamlined system for periodic updating of KYC.
To provide relief to parents, particularly those suffering from cancer, rare diseases and other severe chronic diseases, Govt has proposed to add 36 lifesaving drugs and medicines to the list of medicines fully exempted from Basic Customs Duty (BCD).
New Income Tax Bill to be introduced in the Budget session. The New Income Tax Bill will be clearer and will have around 50% lesser text compared to the present law, in terms of both chapters and words. It will be simple to understand for taxpayers and tax administration, leading to tax certainty and reduced litigation.
Entrepreneurship, MSMEs and Employment
The Govt will introduce ‘Customized Credit Cards’ with a Rs 5 lakh limit for Micro Enterprises registered on Udyam portal. In the first year, 10 lakh such cards will be issued.
A new Fund of Funds for Startups, with a contribution of Rs 10,000 crore will be set up.
A new scheme will be launched for 5 lakh women, Scheduled Castes and Scheduled Tribes ‘First-time entrepreneurs’.
For India’s footwear and leather sector, a focus product scheme will be implemented. The scheme is expected to facilitate employment for 22 lakh persons, generate turnover of Rs 4 lakh crore and exports of over Rs 1.1 lakh crore.
5 National Centres of Excellence for Skilling will be set up with global expertise and partnerships.
