NEW DELHI
Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26, outlining what she called a roadmap for economic growth, social welfare, and technological advancement. With a strong push for agriculture, infrastructure, tax relief, and digital transformation, the budget also stressed defense modernization, cybersecurity, and space exploration. Highlights include higher credit for farmers, tax cuts for the middle class, record investments in healthcare and education, and a focus on innovation and manufacturing. Here’s a look at the biggest takeaways from this year’s budget.
The 2025–26 Budget appears to introduce structural changes across many sectors through policy adjustments and funding allocations. The measures span public infrastructure, social programs, and economic reforms, setting a framework for implementation through 2026. State governments will receive support for specific initiatives, said the Finance Minister, while industry incentives target manufacturing and technology development. The policy document establishes new parameters for taxation, credit access, and social welfare programs, with defined timelines for execution across urban and rural regions.
New Income Tax Slabs for 2025-26 Updates:
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- ₹0-4 Lakh – nil
- ₹4 lakh – 8 lakh – 5%
- ₹8 lakh – 12 lakh: 10%
- ₹12 lakh – 16 lakh : 15%
- ₹16 lakh – 20 lakh: 20%
- ₹20 lakh – 24 lakh: 25%
- ₹24 lakh & above: 30%
Budget 2025 Key Announcement & Highlights
The following are the key highlights and announcements of the Union Budget 2025 presented by Finance Minister Nirmala Sitharaman today:
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- Gareeb, youth, nari will be the key focus
- Underemployment in agri will be addressed, 1.7 crore farmers will benefit
- National Mission on high yielding seeds will be launched
FM proposes 5-year programme for increasing Cotton Productivity
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- India Post to become large public logistic organisation
- Atal Tinkering Labs: 50,000 such labs to be set up in govt schools in 5 years
- ₹10,000 crore fund of funds proposed for start ups
- 10,000 additional seats to be inculcated in medical institutes; 75,000 medical seats in 5 years will be created
- Kisan Credit Cards for 7.7 crore farmers; loan Limit enhanced to ₹5 lakh
- MSME: Term loans up to ₹20 crore will be given
- Modified UDAN scheme to be launched; 120 new destinations under modified UDAN scheme
- SWAMIH Fund: another 40,000 housing units to be completed in 2025
- Top 50 tourism destination to be developed
- National Geospatial Mission announced
- Second Gene Bank to be set up for future food security
- Greenfield airports to be facilitated in Bihar
New income tax bill next week, says Sitharaman
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- Jan Vishwas Bill 2.0 to be brought in to decriminalise 100 provisions
- Revised fiscal deficit estimated to be 4.8% of GDP
- Capital expenditure at ₹10.18 lakh crore
- Gross market borrowings at ₹14.82 lakh crore
- Social welfare surcharge on 82 tariff lines waived
- 36 life-saving drugs fully exempted from customs duty
- Handicrafts: 9 items to be added to duty free inputs
- Personal tax reforms with special focus on middle class
- TCS for remittance on education purposes removed
- Compliance burden reduced for small charitable trusts
- New scheme to determine Arms length Price in international transactions to be introduced
- Digitalisation being operationalised in tax frameworks
- Start ups: Extending incorporation benefits for five years
No income tax payable up to income of ₹12 lakh
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- Capital gains limit exceeded to ₹12.7 lakh
- Income tax slabs changed
- Income of ₹18 lakh will get ₹70,000 tax benefit
- Now maximum rate of 30% kick in at ₹24 lakh taxable compared to ₹15 lakh earlier