Budget 2025 Live Updates: Nirmala Sitharaman
FM Nirmala Sitharaman presenting the first full Budget of Modi 3.0, balancing tax cut hopes and growth needs. With GDP growth projected at 6.3-6.8%.
This Government under the leadership of Prime Minister Modi has always believed in the admirable energy and ability of the middle class in nation building. In recognition of their contribution, we have periodically reduced their tax burden. Right after 2014, the ‘Nil tax’ slab was raised to Rs 2.5 lakh, which was further raised to Rs 5 lakh in 2019 and to Rs 7 lakh in 2023. This is reflective of our Government’s trust on the middle-class tax payers. I am now happy to announce 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. This limit will be Rs 12.75 lakh for salaried tax payers, due to standard deduction of Rs 75,000.
Budget Live: No income tax till Rs 12 lakh!
In a big update for salaried taxpayers, Finance Minister Nirmala Sitharaman announced that there will be no income tax to be paid for income levels up to Rs 12 lakh.
A tax payer in the new regime with an income of Rs 12 lakh will get a benefit of Rs 80,000 in tax (which is 100% of tax payable as per existing rates).
A person having income of Rs 18 lakh will get a benefit of Rs 70,000 in tax (30% of tax payable as per existing rates).
A person with an income of Rs 25 lakh gets a benefit of Rs 1,10,000 (25% of his tax payable as per existing rates).
Budget Live: TDS relief for senior citizens
The threshold for Tax Deducted at Source (TDS) for Senior Citizens will be doubled to Rs 1 lakh, said FM Nirmala Sitharaman in her Union Budget speech.
Budget Live: Latest Income Tax Slabs Live: Here are the latest income tax slabs and rates for FY 2025-26
Rs 0-4 lakh – Nil
Rs 4-8 lakh- 5%
Rs 8-12- 10%
Rs 12-16- 15%
Rs 16-20-20%
Rs 20-24- 25%
Above Rs 24 lakh- 30%
“Next week marks a pivotal moment as the Government prepares to unveil a new income-tax bill, potentially reshaping the financial landscape for years to come”, Finance Minister Nirmala Sitharaman in her Union Budget 2025 speech said that the new Income Tax Bill will be introduced in Parliament next week. New Income Tax Bill next week, tweak in income tax slabs for salaried taxpayers coming?
Old tax regime
No tax is applicable for annual income up to Rs 250,000.
A 5% tax rate is levied on income between Rs 250,001 and Rs 500,000.
For earnings ranging from Rs 500,001 to Rs 1,000,000, a 20% tax rate applies.
Income exceeding Rs 1,000,000 is taxed at 30%.
Currently, individuals opting for the new tax regime can receive a rebate of up to Rs 25,000 when their yearly earnings do not exceed Rs 7,00,000. In contrast, those following the old tax regime are eligible for a maximum rebate of Rs 12,500, provided their annual income stays within Rs 5,00,000.
Budget Live: 36 live saving drugs and medicines fully exempted from basic customs duty, Announces Finance Minister Nirmala Sitharaman,
Budget Live: Promoting Exports to Propel Growth
- Support to be provided to develop domestic manufacturing capacities for our economy’s integration with global supply chains
- Government to support domestic electronic equipment industry to leverage Industry 4.0 opportunities for benefit of youth
- National framework to be formulated as guidance to states for promoting Global Capability Centres in emerging tier-2 cities.
Budget Live: Investing in Innovation
Announcing measures to promote “Investing in Innovation”, Ms. Sitharaman announces an allocation of ₹20,000 crores.
A DeepTech Fund of Funds will also be explored to catalyse the next generation startups.
10,000 fellowships to be provided for technological research in IITs and IISC with enhanced financial support.
Budget Live: FM proposes increasing FDI limit for insurance sector
Nirmala Sitharaman proposed increasing the FDI limit for insurance sector to 100%.
Budget Live: Focus on product scheme for footwear & leather sectors
The focus on product scheme for footwear & leather sectors is expected to facilitate employment for 22 lakh persons, turnover of ₹4 lakh crore and exports of over ₹ 1.1 lakh crore, according to FM Sitharaman.
Budget Live: PPP in infrastructure
- 3-year pipeline of projects by states to be given that can be implemented in private-public partnership (PPP) mode.
- Each infrastructure-related ministry is to come up with a 3-year plan to be implemented in PPP mode.
- The outlay of ₹1.5 lakh crore is proposed for 50-year interest-free loans.
Budget Live: FM proposes more seats in medical colleges
FM Nirmala Sitharaman announced that 10,000 seats would be added in medical colleges from next year.
Budget Live: FM proposes new scheme for women
In addition to enhancing the credit limit for MSMEs, the FM also announced a new scheme of ₹5 lakh for women, the Scheduled Cast, and the Scheduled Tribe.
Budget Live: India’s fiscal path
FM Nirmala Sitharaman stated that the government aims to maintain the fiscal deficit each year in a manner that ensures central government debt remains on a declining trajectory as a percentage of GDP. The roadmap for the next six years has been outlined in the FRBM statement. For 2024-25, the revised estimate for total receipts (excluding borrowings) stands at ₹31.47 lakh crore, with net tax receipts at ₹25.57 lakh crore. The revised estimate for total expenditure is ₹47.16 lakh crore, including a capital expenditure of ₹10.1 lakh crore. The fiscal deficit for the year is now pegged at 4.8% of GDP.
