Introduction
The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, introduces a range of economic and tax reforms aimed at boosting growth, increasing disposable income, and strengthening key industries. This budget focuses on easing tax burdens, infrastructure expansion, and incentives for startups and MSMEs.
Key Highlights of Union Budget 2025
Income Tax Reforms
The Union Budget 2025 proposes significant changes in the income tax structure, benefiting taxpayers across various income levels.
Revised Income Tax Slabs for FY 2025-26
| Annual Income (₹) | Tax Rate (%) |
|---|---|
| 0 – 4,00,000 | Nil |
| 4,00,001 – 8,00,000 | 5% |
| 8,00,001 – 12,00,000 | 10% |
| 12,00,001 – 16,00,000 | 15% |
| 16,00,001 – 20,00,000 | 20% |
| 20,00,001 – 24,00,000 | 25% |
| Above 24,00,000 | 30% |
Income Tax Slab Comparison: FY 2024-25 vs. FY 2025-26
| Annual Income (₹) | Tax Rate FY 2024-25 (%) | Tax Rate FY 2025-26 (%) |
|---|---|---|
| 0 – 2,50,000 | Nil | Nil |
| 2,50,001 – 5,00,000 | 5% | Nil |
| 5,00,001 – 7,50,000 | 10% | 5% |
| 7,50,001 – 10,00,000 | 15% | 5% |
| 10,00,001 – 12,50,000 | 20% | 10% |
| 12,50,001 – 15,00,000 | 25% | 10% |
| Above 15,00,000 | 30% | 15% |
Agricultural Initiatives
- Prime Minister Dhan-Dhaanya Krishi Yojana: A new scheme for improving agricultural productivity across 100 districts.
- Mission for Cotton Productivity: A five-year initiative to promote India’s 5F vision (Farm to Fibre to Factory to Fashion to Foreign).
Infrastructure and Education
- Five new IITs will be established, adding over 6,500 student seats.
- 10,000 new medical seats will be introduced to meet India’s growing healthcare demands.
Support for MSMEs and Startups
- Enhanced credit access for MSMEs to boost business growth.
- Startup incentives and funding to encourage innovation.
Energy and Environment
- 100 GW Nuclear Energy Mission for clean energy by 2047.
- Increased investments in renewable energy projects.
Conclusion
The Union Budget 2025 focuses on taxpayer relief, infrastructure expansion, startup growth, and energy sustainability. These reforms aim to strengthen India’s economy, drive innovation, and enhance living standards.