Union Budget 2025: New Updates & Highlights

Introduction

The Indian government presented the Union Budget for 2025-26 on February 1, 2025, led by Finance Minister Nirmala Sitharaman. This budget is important because the country is facing issues like slow economic growth, rising prices, high loan interest rates, and unemployment. The main goal of the government is to boost the economy by investing in key sectors and introducing new policies.

Key Highlights in Simple Words:

• Tax Cuts: Middle-class people will pay less income tax. No tax for incomes up to ₹12 lakh under the new tax system.
• Infrastructure Boost: ₹10 lakh crore will be spent on building roads, bridges, and other projects.
• Farming Support: The government will help farmers grow more pulses and set up a special Makhana board in Bihar. A new program will improve rural life with state partnerships.
• Support for Small Businesses & Startups: More money and better loan options for small businesses and startups.
• Green Energy: ₹35,000 crore will be spent on projects to promote clean energy.

Other Important Points

• The budget focuses on improving taxation, electricity, cities, mining, finance, and regulations.
• More focus on growing pulses like toor, urad, and masur in India.
• Bihar will get a Makhana board to help farmers grow and sell fox nuts.
• A new program will help rural areas grow and become more stable.
• The government is spending a record ₹10 lakh crore on infrastructure, a 33% increase.
• More money for farmers, with agricultural loans increasing to ₹20 lakh crore.
• Small businesses will get better financial support with ₹9,000 crore added to the loan guarantee program.

Update by Finance Minister Nirmala Sitharaman on union budget 2025

(12:44 PM) New Income Tax Slabs (2025)

• Income up to ₹4 lakh – No tax

• ₹4 lakh to ₹8 lakh – 5% tax

• ₹8 lakh to ₹12 lakh – 10% tax

• ₹12 lakh to ₹16 lakh – 15% tax

• ₹16 lakh to ₹20 lakh – 20% tax

• ₹20 lakh to ₹24 lakh – 25% tax

• Above ₹24 lakh – 30% tax

(12:38 PM): The fiscal deficit target is set at 4.4% for 2025-26

Finance Minister Nirmala Sitharaman sets the fiscal deficit target at 4.4% of GDP for 2025-26.

(12:36 PM): The FDI limit for the insurance sector is increased to 100%

Finance Minister Nirmala Sitharaman announced raising FDI limits in the insurance sector from 74% to 100%, with some restrictions.

(12:28 PM): Direct and indirect tax

The government will give up ₹1 lakh crore in direct taxes and ₹2,600 crore in indirect taxes due to changes in tax rates.

(12:25 PM): Major tax relief for senior citizens

Senior citizens can now get a tax deduction of up to ₹1 lakh on interest income, and TDS on rent will only apply if the amount exceeds ₹6 lakh.

(12:23 PM): Big income tax relief!

• People earning ₹18 lakh per year will save ₹70,000 in taxes.

• Those earning ₹12 lakh per year will save ₹80,000 in taxes.

(12:19 PM): No Income Tax Payable up to Rs 12 lakh

No income tax will be payable on earnings up to ₹12 lakh under the new regime, as announced by Finance Minister Nirmala Sitharaman, keeping in mind the middle class’s contribution to the economy.

(12:12 PM): Revised ITR (Income Tax Returns) Facility

The authorities have extended the deadline to file updated returns from 2 years to 4 years to promote voluntary compliance.

(12:11 PM): Relaxation on TCS

Just like the relief for TDS payment delays, the same will apply to TCS rules as well.

(12:08 PM):TCS Removal Proposal

• The proposal is to remove TCS on education remittances paid through a loan from a recognized financial institution.

• TCS on goods sales will be removed to make compliance easier.

(12:07 PM): Major Declarations for TDS

• Doubling the interest tax deduction limit for senior citizens from ₹50,000 to ₹1,00,000.

• Raising the TDS limit on rent from ₹2.40 lakh to ₹6 lakh for small taxpayers.

• Increasing the TCS threshold for remittances under LRS from ₹7 lakh to ₹10 lakh.

(12:05 PM): Income tax reforms with a special focus on the middle class

Financial Minister said: “My tax proposals aim to make business easier, encourage people to follow tax rules willingly, and reduce the burden of compliance.

These changes focus on reforming personal income tax, especially for the middle class, simplifying TDS and TCS, and promoting job creation and investment.”

(12:03 PM): New Income tax bill to be announced next week  

Finance Minister Nirmala Sitharaman talked about the government’s tax reforms to make things easier for taxpayers. These include faceless assessments, the taxpayer charter, and faster return processing. With 99% of returns based on self-assessment, the approach is “trust first, scrutinize later.” She also mentioned that they will introduce a new income tax bill next week to continue improving the system.

(12:02 PM): For ease of Taxpaying

The new income tax bill is clear and simple, making it easier for both taxpayers and tax administrators to understand and use. Its straightforward language eliminates confusion, ensuring a more user-friendly experience for everyone.

(11:20 AM): Big Announcements for MSMEs

The government will focus on 5.7 crore MSMEs, including 1 crore registered businesses that employ 7.5 crore people and contribute 36% to India’s manufacturing.

To boost growth, the government will increase investment and turnover limits for MSMEs by 2.5 times and 2 times, respectively.

(10:53 AM): India’s Forex reserves are the 4th largest in the world

India’s foreign exchange reserves cover 90% of external debt and almost 11 months of imports, making it one of the top four reserve holders globally.

Suggested Read :

Income Tax Bill 2025

Due Dates of GST return 2025-26

Check TDS return status with PAN No

Intimation notice of Income Tax Act

12A & 80G Compliance of Income Tax Act