UNION BUDGET 2025 FOR FY 2025-26
NO INCOME TAX UP TO RS 12 LAKHS : BUDGET HIGHLIGHT
Dated 01.02.2025 : Nirmala Sitharaman, India’s Finance Minister, presented the Union Budget for 2025-26 today, February 1st, 2025. Here are some of the key highlights:
Focus: The budget emphasizes accelerating growth, inclusive development, private sector investment, uplifting household sentiment, and enhancing the spending power of the middle class. It aims at “transformative” reforms in taxation, financial sector, power sector, urban development, mining, and regulatory reforms.
Fiscal deficit for FY25 projected at 4.8% of GDP, with a target of 4.4% for FY26.
Net market borrowings for the next fiscal year estimated at Rs 11.54 lakh crore.
Rs 1.5 lakh crore as interest-free loans to states for infrastructure development.
Key Sector Announcements:
Agriculture: New initiatives under PM Krishi Yojana, focus on pulses self-reliance, and support for farmers.
Education: 50,000 Atal Tinkering Labs, Bharatiya Bhasha Pustak scheme, broadband connectivity for schools, and expansion of IITs.
Healthcare: Daycare cancer centers in all district hospitals, additional seats in medical colleges.
MSMEs: Customized credit cards, fund of funds for startups, and enhanced investment limits.
Infrastructure: Focus on developing India’s manufacturing sector, with emphasis on custom duty reforms, skill development, and agricultural value chain enhancements.
Other: India Post to be transformed into a large public logistic organization, schemes for footwear, leather, and toy sectors.
Technology:
Centre of excellence in Artificial Intelligence to be set up.
Emphasis on emerging technologies like AI, robotics, and biotechnology.
Social Welfare:
Schemes for socio-economic upliftment of urban workers and welfare of online platform workers.
Support for rural women and young farmers.
Overall: The budget aims to boost economic growth, improve infrastructure, support key sectors, and provide relief to the middle class.
It focuses on long-term development goals and aims to make India a global hub for manufacturing and innovation.
BUDGET at a glance FM’ s BUDGET SPEECH FINANCE BILL 2025
For the Income tax changes announced in the budget , read our article Direct Tax code 2025
FM TO PRESENT UNION BUDGET ON THE 1ST, FEBRUARY 2025
Special trading session on Saturday,
Dated 30.01.2025 : As usual practice , the Finance Minister Ms Nnirmala Sitharaman will present the union budget on 1st , February 2025 at 1100 am.
As the Union Budget is being presented on Saturday, the stock markets , BSE , NSE & MCX , will be open for trading on that day .
NSE & BSE Trading Hours 9:15 AM to 3:30 PM
MCX Trading Hours 9:00 AM to 5:00 PM
What’s available
Placing Buy & Sell orders using MTF and in Delivery, Futures & Options, Commodities
Placing orders using Breeze API & Execution Algorithm features
What’s not available
Selling of stocks bought in Delivery or bought using MTF on 31st January, 2025
PRE-BUDGET CONSULTATIONS CONTINUE
Update dated 07.01.2025 : Ms Nirmala Sitharaman , the Finance Minister , has started pre-budget consultations with various stakeholders and she has completed nine rounds of talks in the last one month .
In the first round , pre-budget consultations were held with the leading economists at a meeting chaired by Hon’ble Finance Minister Nirmala Sitharaman and accompanied by the Finance Secretary, Secretary of the Department of Economic Affairs, and the Chief Economic Adviser to the Government of India. These discussions aimed to gather valuable inputs for the upcoming Union Budget, ensuring it is inclusive and focused on growth. The consultations provided a platform to understand diverse perspectives and shape policies aligned with the nation’s economic priorities.
The second Pre-Budget Consultation was held with various farmer associations and leading agricultural economists y. The Pre-Budget Consultation was held with the stakeholders from Micro, Small and Medium Enterprises .Union Minister of State for Finance Shri P.P Chaudhary also attended the Pre-Budget consultation meeting along with the Finance Secretary and Secretary, D/o Expenditure; Secretary, Department of Economic Affairs , and senior officers from the Finance ministry and Chief Economic Adviser, Government of India.
Finance Minister had the third round of consulations Meeting with States and UTs (with legislature), in Jaisalmer, Rajasthan, when GST council meeting was held there on 21st, December 2024
The fourth Pre-Budget Consultation was held on 26th , December with the stakeholders and experts from export, trade and industry sectors in connection with the upcoming Union Budget 2025-26.
The fifth and sixth Pre-Budget Consultation with experts and representatives from the Health and Education sectors in connection with the upcoming Union Budget 2025-26, in New Delhi, was held on 30th, December 2024 .The seventh Pre-Budget Consultation with the stakeholders from the financial sector and capital markets in connection with the forthcoming Union Budget 2025-26, in New Delhi, was held on 2nd , January 2025 .The 8th & 9th Pre-Budget Consultation was held yesterday in New Deli 8th round was attended by the representatives of trade unions while 9th was held with the stakeholders and experts from infrastructure, energy and urban sectors .
INCOME TAX RETURN FILING MAY UNDERGO DRASTIC CHANGES : MEDIA SOURCE
Dated 09.01.2025 : Many newspapers reported , based on anonymous sources , that the Central government is contemplating a revamp of the Income-tax Act of 1961 and will likely be issued for public consultation around mid-January, The news also talks of potential changes to the Indian Income Tax Returns system in the upcoming 2025 budget. Here’s a summary of supposed to be contemplated proposals :
Simplification: The Indian government is planning to simplify the income tax filing system by overhauling the Income-Tax Act of 1961.
Reduced Compliance Burden: The aim is to reduce bureaucratic hurdles and ease compliance for taxpayers.
Reduced Tax Disputes: Tax disputes have surged in recent years, and the government aims to address this issue.
Public Consultation: A revised framework for the income tax system is expected to be open for public consultation by mid-January 2025.
Implementation: The revised legislation is expected to be introduced in the 2025 Union Budget, scheduled for early February.
Key Changes Being Considered:
Simplified Language: The language of the Income-Tax Act will be simplified to make it more understandable for taxpayers.
Rationalized Information: Information will be presented in a more organized and user-friendly manner, potentially using formulas and tables.
Reduced Forms: The number of additional forms taxpayers need to submit with their returns may be reduced.
It may be remembered that a similar proposal to introduce a common simplified It Return was mooted in November 2022 , but it didn’t take off . If new proposal goes forward , then it will be incorporated in the budget speech of the F inance Minister
INCOME TAX EXEMPTION LIMIT MAY GO UP : MEDIA SOURCE
Dated 27.12.2024 : Many newspapers and media channels reported quoting a report from Reuters, that the Central government is contemplating a reduction in income tax for individuals earning up to Rs 15 lakh per year. This measure is expected to benefit a large number of urban taxpayers.
The report, based on information from government sources, suggests that the forthcoming Union Budget for the year 2025-26 may offer tax relief to the middle class, thereby stimulating consumption. Additionally, this move could benefit numerous individuals if they choose to adopt the new tax regime, which eliminates exemptions such as those related to housing rentals.
Under the new tax regime ,tax rate goes up to 20% for annual income of less than Rs 15 lakhs . Under the New Tax Regime, income up to Rs 3 lakh is tax exempt, while income in the Rs 3-7 lakh is taxed at 5%, the Rs 7-10 lakh at 10%, the Rs 10-12 lakh at 15%, the Rs 12-15 lakh at 20%, and any income exceeding Rs 15 lakh at 30%.
However , as pre-budget consultations are still going on , it’s too premature to assume that the government has decided on any specific move in the matter
TAX PLANNING FOR FY 2024-25 ( AY 2025-26 ) Comprehensive Article on Income Tax Changes in Rules, Rates, Slabs , Rebates and Estimation
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