Key Highlights of Union Budget 2025

1. Tax Relief for the Middle Class

• No Income Tax on Income Up to ₹12 Lakh: Individuals earning up to ₹12 lakh annually are now exempt from paying income tax, providing significant financial relief and increasing disposable income.
• Revised Income Tax Slabs: The maximum tax rate of 30% now applies to incomes above ₹24 lakh, compared to the previous threshold of ₹15 lakh.
• Increased Capital Gains Exemption Limit: The capital gains exemption limit has been raised to ₹12.7 lakh, encouraging investments across various asset classes.
• Tax Benefits for Incomes Up to ₹18 Lakh: Individuals earning ₹18 lakh annually will receive a tax benefit of ₹70,000 under the new regime.

2. Agriculture and Rural Development

• Addressing Underemployment in Agriculture: A comprehensive program targeting underemployment in the agricultural sector is set to benefit 1.7 crore farmers.
• National Mission on High-Yielding Seeds: A new mission will be launched to promote the use of high-yielding seed varieties, aiming to boost crop productivity.
• Five-Year Program to Increase Cotton Productivity: The government proposes a dedicated five-year plan to enhance cotton yield and quality.
• Enhanced Kisan Credit Card Limit: The Kisan Credit Card limit has been increased to ₹5 lakh, providing greater financial support to farmers.

3. Youth Empowerment and Education

• Atal Tinkering Labs Expansion: Over the next five years, 50,000 Atal Tinkering Labs will be established in government schools to foster innovation and creativity among students.
• Expansion of Medical Education: An additional 10,000 seats will be introduced in medical institutes next year, with a target of creating 75,000 medical seats over the next five years to address the shortage of healthcare professionals.

4. Infrastructure and Connectivity

• India Post Transformation: India Post will be developed into a large public logistics organization to enhance postal and logistical services across the country.
• Modified UDAN Scheme: A revamped UDAN scheme will be launched, introducing 120 new destinations to improve regional air connectivity.
• Development of Top 50 Tourism Destinations: The government plans to develop the top 50 tourist destinations in collaboration with states to boost tourism.

5. Support for MSMEs

• Increased Term Loans: Micro, Small, and Medium Enterprises (MSMEs) will have access to term loans up to ₹20 crore to support business expansion and development.

6. Housing and Urban Development

• SWAMIH Fund Expansion: An additional 40,000 housing units are expected to be completed in 2025 under the SWAMIH Fund, aiming to provide affordable housing solutions.

7. Technological Advancements

• National Geospatial Mission: A new mission has been announced to develop foundational geospatial infrastructure and data, supporting various sectors including urban planning and infrastructure development.

8. Energy and Environment

• Second Gene Bank Establishment: A second gene bank will be set up to ensure future food security and preserve genetic resources.
• Greenfield Airports in Bihar: The government will facilitate the development of greenfield airports in Bihar to improve regional connectivity.

9. Taxation and Fiscal Policies

• New Income Tax Bill: A new income tax bill is expected to be introduced next week, aiming to simplify the tax structure.
• Jan Vishwas Bill 2.0: This bill aims to decriminalize 100 provisions across various laws to enhance ease of doing business.

10. Fiscal Management

• Fiscal Deficit Target: The revised fiscal deficit is estimated to be 4.8% of GDP, reflecting the government's commitment to fiscal discipline while promoting growth.
• Capital Expenditure: The government has allocated ₹10.18 lakh crore for capital expenditure, focusing on infrastructure development to stimulate economic activity.

Conclusion

The Union Budget 2025 presents a balanced approach, combining fiscal responsibility with bold reforms across various sectors. The significant tax relief measures, coupled with strategic investments in agriculture, infrastructure, and education, are poised to drive inclusive growth and strengthen India's economic foundation.

Stay informed to make the most of the opportunities presented in Budget 2025!