Union Budget 2025 Highlights: Middle-Class-Friendly Budget to Boost Consumption, No Income Tax on Earnings Up to ₹12 Lakh in New Tax Regime

Union Budget 2025 Highlights: The Union Budget 2025 presented by Finance Minister Nirmala Sitharaman includes several announcements aimed at boosting economic growth and supporting various sectors, with a special emphasis on the middle class, agriculture, infrastructure and digitalisation.

Income tax slabs for FY 2025-26

• ₹0-4 lakh: Zero tax
• ₹4 lakh-8 lakh: 5% tax
• ₹8 lakh-12 lakh: 10% tax
• ₹12 lakh-16 lakh: 15% tax
• ₹16 lakh-20 lakh: 20% tax
• ₹20 lakh-24 lakh: 25% tax
• ₹24 lakh and above: 30% tax

Union Budget 2025 Highlights

• Focus on poverty, youth and women: Major initiatives to address underemployment in agriculture and upliftment of vulnerable groups.
• Support for farmers: Launch of National Mission on High Yield Seeds will benefit 1.7 crore farmers.
• Transformation of India Post: India Post will evolve as a leading public logistics organisation.
• Atal Tinkering Labs: 50,000 labs to be set up in government schools in the next 5 years.
• Startup Fund: ₹10,000 crore fund to support startups.
• Medical Education: 10,000 additional medical seats and 75,000 medical seats to be added in the next 5 years.
• Kisan Credit Card: Loan limit increased to ₹5 lakh for 7.7 crore farmers.
• MSME Support: Term loan up to ₹20 crore for MSMEs.
• Amendment to Udaan Scheme: 120 new destinations to be added.
• Housing & Real Estate: SWAMIH Fund will complete construction of additional 40,000 housing units in 2025.
• Tourism Development: 50 top tourist destinations will be developed.
• Geospatial Mission: A National Geospatial Mission will be launched.
• Gene Bank for Food Security: Second gene bank to ensure future food security.
• Bihar Airports: Greenfield airports to be facilitated in Bihar.
• Jan Vishwas Bill 2.0: Decriminalisation of 100 provisions.
• Fiscal deficit: Revised estimate of 4.8% of GDP.
• Capital expenditure: ₹10.18 lakh crore allocated.
• Market borrowing: ₹14.82 lakh crore estimated.
• Customs duty: Social welfare surcharge waived on 82 tariff lines, 36 life saving drugs exempted from customs duty.
• Support for handicrafts: 9 items added to duty-free input list.
• Tax reform: Personal tax reform with special focus on middle class.
• TCS for education remittances: Removed.
• Tax structure: Digitisation of tax systems and reduced compliance burden for small charitable trusts.
• Startups: Incorporation benefits extended for five years; capital gains limit raised to ₹12.7 lakh.
• Income tax changes: Income up to ₹18 lakh will get a tax benefit of ₹70,000, and the maximum 30% tax rate will now be ₹24 lakh, as against ₹15 lakh earlier.

These announcements reflect the government’s focus on improving the economic environment, supporting key sectors and making tax systems more efficient for both businesses and individuals.