Union Budget 2025 Highlights: PM Modi lauds 'People's Budget', calls it a force multiplier

Thank you for following our live coverage of Budget 2025; stay with us for detailed reports and expert analysis in the coming hours.

Union Finance Minister Nirmala Sitharaman on Saturday reaffirmed the Modi government's commitment to addressing public concerns, emphasizing the swift rollout of income tax simplification measures. She announced that a new Income Tax Bill will be introduced in Parliament next week, aiming to streamline tax compliance and enhance ease of filing for taxpayers.

Bihar Chief Minister Nitish Kumar on Saturday lauded the Union Budget 2025, calling it “progressive and futuristic.” He said that the budget would play a crucial role in accelerating Bihar’s growth, particularly with key initiatives tailored to the state’s needs.

Union Home Minister Amit Shah praised Budget 2025, highlighting tax exemptions for the middle class up to Rs 12 lakh. Click here to know more!

In a major move for the middle class, Union Finance Minister Nirmala Sitharaman's Budget 2025 introduces significant changes to income tax provisions. The tax-free income threshold has been raised to Rs 12 lakh, offering substantial relief to salaried individuals. Additionally, salaried taxpayers will benefit from an additional standard deduction of Rs 75,000, which increases their tax-free income limit to Rs 12.75 lakh.

In a major push for the tourism sector, Union Finance Minister Nirmala Sitharaman revealed plans to extend Mudra loans to homestays, making travel experiences more accessible and boosting local economies. Read here to know more

"This Budget will increase savings, increase investment, increase consumption and will also push forward growth. I congratulate Finance Minister Nirmala Sitharaman and her entire team for presenting people's Budget," said PM Narendra Modi.

Finance Minister Nirmala Sitharaman announced significant changes to income tax slabs, introducing a new structure that will reduce taxes for the middle class and boost household consumption, savings, and investment. The 'nil tax' slab will now apply up to Rs 12 lakh (Rs 12.75 lakh for salaried taxpayers with a standard deduction of Rs 75,000).

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Finance Minister Nirmala Sitharaman announced that the government will increase the Tax Collected at Source (TCS) threshold on remittances under the RBI's Liberalised Remittance Scheme (LRS) from Rs 7 lakh to Rs 10 lakh.

Key updates on TDS (Tax Deducted at Source) from Union Budget 2025 include:

• Rationalizing TDS rates by reducing the number of rates and thresholds for deduction.
• Increasing threshold amounts for better clarity and uniformity.
• Doubling the limit for tax deduction on interest for senior citizens from Rs 50,000 to Rs 1,00,000.
• Raising the annual limit for TDS on rent from Rs 2.40 lakh to Rs 6 lakh, benefiting small taxpayers receiving smaller payments.
• Increasing the threshold to collect Tax Collected at Source (TCS) on remittances under the RBI's Liberalised Remittance Scheme (LRS) from Rs 7 lakh to Rs 10 lakh.

The Union Budget 2025 introduces the Rural Prosperity and Resilience Programme aimed at:

• Creating opportunities in rural areas, making migration an option, not a necessity.
• Catalyzing enterprise development, employment, and financial independence for rural women.
• Accelerating the creation of new employment and businesses for young farmers and rural youth.

Finance Minister Nirmala Sitharaman announced that a new Income Tax Bill will be introduced next week. During her Union Budget 2025-26 presentation in Parliament, she highlighted that the bill will be based on the Direct Tax Code (DTC), aiming to replace the Income Tax Act of 1961 and simplify tax compliance for both individuals and businesses.

The government is set to simplify and streamline the customs tariff structure, aiming to address duty inversion and promote domestic manufacturing, value addition, and exports. This rationalisation is part of a broader review of the customs rate structure, initially outlined in the July 2024 Budget.

Key announcements for street vendors and online/urban workers:

• Gig workers on online platforms will receive identity cards and registration on the e-Shram portal.
• A new scheme for socio-economic upliftment of urban workers will be implemented.
• The PM SVANidhi scheme will be revamped, offering enhanced loans from banks, UPI-linked credit cards with a ₹30,000 limit, and capacity building support.

Finance Minister Nirmala Sitharaman announced key initiatives to strengthen India's education and healthcare sectors:

• 50,000 Atal Tinkering Labs to be established in government schools over the next five years to foster innovation.
• Bharatiya Bhasha Pustak Scheme to provide digital-format Indian language books for school and higher education.
• Daycare Cancer Centres to be set up in all district hospitals within three years, with 200 centres operational in FY 2025-26.

Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2025-26, said additional infrastructure in 5 IITs set up after 2014. Focus will also be on IIT Patna expansion.

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Finance Minister Nirmala Sitharaman announced a national action plan to position India as a global toy manufacturing hub. The initiative will focus on developing clusters, enhancing skills, and strengthening the manufacturing ecosystem to produce high-quality, innovative, and sustainable toys under the 'Made in India' brand.