Finance Minister Nirmala Sitharaman presented the eighth consecutive budget on February 1, 2025, focusing on economic growth, agriculture, taxation, and social welfare. A new Income Tax Bill will be introduced next week, following the principle of “trust first, scrutinize later.” Alternatively, download the top points here
1. Focus Areas: Welfare & Employment
- Empowering Women, Youth & Farmers – The budget prioritizes social and economic development.
- Agricultural Reforms – A National Mission on High-Yielding Seeds is being launched to benefit 1.7 crore farmers.
- Cotton Productivity Initiative – A 5-year program aims to increase cotton yields and improve farmers’ incomes.
- Kisan Credit Cards – 7.7 crore farmers to benefit, with the loan limit raised to ₹5 lakh.
2. Infrastructure & Development
- India Post Transformation – It will become a major public logistics provider.
- Greenfield Airports – New airports will be developed in Bihar to boost connectivity.
- Tourism Growth – Top 50 tourist destinations will be developed to attract visitors.
- National Geospatial Mission – Aims to improve mapping, navigation, and urban planning.
3. Education & Healthcare
- Atal Tinkering Labs – 50,000 labs to be set up in government schools over the next 5 years.
- Medical Education Expansion – 10,000 new medical seats this year; a total of 75,000 seats to be added in 5 years.
4. Startups & MSME Support
- MSME Funding – Businesses can now avail term loans up to ₹20 crore.
- Startup Benefits – The incorporation benefit period has been extended by 5 years to boost entrepreneurship.
5. Housing & Social Welfare
- SWAMIH Fund Expansion – 40,000 housing units to be completed in 2025.
- Social Welfare Surcharge – Waived on 82 tariff lines to reduce the cost of essential goods.
- Life-Saving Drugs – 36 medicines are now fully exempt from customs duty.
6. Taxation & Compliance
- New Income Tax Bill – Aims to simplify taxation and reduce the burden on taxpayers.
- Personal Tax Reforms – Special focus on the middle class.
- Nil tax slab raised to ₹12 lakh.
- Capital gains limit increased to ₹12.7 lakh.
- Extended time to file updated tax returns from 24 to 48 months.
- Crypto-assets reporting made mandatory.
- National Savings Scheme (NSS) withdrawals exempt from tax.
- Arms-Length Pricing for International Transactions – A new scheme will simplify tax compliance for global businesses.
- TCS on Education Remittances Removed – Making it easier for students studying abroad.
7. Economic & Fiscal Overview
- Revised Fiscal Deficit – Estimated at 4.8% of GDP.
- Capital Expenditure – ₹10.18 lakh crore allocated for infrastructure development.
- Gross Market Borrowings – Set at ₹14.82 lakh crore.
8. Transportation & Connectivity
- Modified UDAN Scheme – 120 new destinations added to enhance air connectivity.
- Inland Waterways Growth – Tonnage tax benefits extended to inland vessels.
Conclusion: A Growth-Driven Budget for 2025
Furthermore, The Union Budget 2025 is a forward-looking plan focused on economic growth, tax relief, infrastructure expansion, MSME support, and lastly, employment generation, However, With key benefits for farmers, businesses, and the middle class. Also, the government aims to enhance financial stability and long-term development.
Now, From revised tax slabs to startup incentives, this budget promotes wealth creation and inclusive progress. Stay tuned for more updates on policy changes, investment opportunities, and financial planning tips.
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