Finance Minister Nirmala Sitharaman presents the Union Budget 2025-26 in front of the Parliament. AMong high anticipations among the citizens, here are the key highlights
Updated On: 2025-02-01 11:58 AM IST
Compiled by : Joy Manikumar
In a significant move, Finance Minister Nirmala Sitharaman announced that taxpayers with an annual income of up to 12 lakh will not have to pay income tax, that is average income of Rs. 1 lakh per month other than special rate income such as capital gains. This limit will be Rs. 12.75 lakh for salaried tax payers, due to standard deduction of Rs. 75,000. The new income tax bill will be introduced next week
About 10,000 seats will be added in medical colleges and hospitals from next year and upto 75,000 seats to be added in next five years across the nation
Finance minister announced imposition of no more than one cess or surcharge, while exempting the Social Welfare Surcharge on 82 tariff lines currently subject to a cess. She also proposed aims to simplify the TDS system by reducing the number of rates and thresholds, increasing limits for senior citizens to 1 lakh and rent to 6 lakh, removing TCS on goods transactions, and applying higher TDS deductions only for non-PAN cases, which will benefit smaller taxpayers and reduce compliance difficulties. Additionally, seven tariff rates will be removed, building on the seven removed in the 2023-24 budget, leaving only eight remaining tariff rates, including a ‘zero’ rate. Finally, an appropriate cess will be applied to broadly maintain the effective duty incidence, except on a few items where the incidence will reduce marginally.
Nirmala Sitharaman announces 36 lifesaving drugs and medicines to be added to list inorder to provide relief to patients that are suffering from cancer and other rare or chronic diseases. These medicines will be full exempted from Basic Customs Duty (BCD). Six lifesaving medicines will be added to attract cencessional customes duty of 5 per cent
Ahead of assembly elections in Bihar to be held later this year, the state was the main focus of the budget with many gifts showered on it, which includes setting up of a Makhana Board, financial support for the western Kosi canal and support for enhancing the capacity of IIT Patna
The minister announced that 200 cancer centres will be established in the year 2025-26, working towards the goal of setting up day care cancer centres in every district across India
Sitharaman also proposed measures to reduce the compliance burden for taxpayers. One of the key proposals is that no tax will be collected at source on the sale of specified goods valued at more than 50 lakh. Additionally, to ease the difficulties faced by taxpayers, it is proposed to allow the benefit of claiming the annual value of two self-occupied properties as nil without any conditions. The proposal also aims to reduce the compliance burden for small charitable trusts and institutions by extending their registration period from 5 years to 10 years. Furthermore, it suggests that minor defaults, such as incomplete applications filed by charitable entities, should not lead to disproportionate consequences
