Union Budget 2025 Highlights: Will Your Pocket Stay Full or Empty?

Finance Minister Nirmala Sitharaman presented her 8th Union Budget on February 1, 2025, bringing a host of reforms and benefits aimed at strengthening the middle class, businesses, and key sectors of the Indian economy.

Top Highlights of Budget 2025

1. Big Relief for Taxpayers – New Tax Slabs Announced

The government introduced revised tax slabs under the new tax regime, significantly benefiting the middle class:

• 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

No Income Tax for Salaried Individuals up to ₹12.75 lakh, thanks to a ₹75,000 standard deduction!

2. Tax Benefits for the Middle Class

• Zero tax liability for individuals earning up to ₹12 lakh per year after deductions.
• A taxpayer earning ₹12 lakh per year will get a tax benefit of ₹80,000.
• Standard deduction of ₹75,000 for salaried individuals.

3. Boost for Startups & MSMEs

• Incorporation period for startups extended to 5 years for eligibility under tax benefits.
• New ₹10,000 crore AIF fund to support startup growth.
• MSME coverage enhanced to ₹10 crore (earlier ₹5 crore).

4. Big Push for Infrastructure & Investment

• Capex target set at ₹10.18 lakh crore for FY25.
• Simplification of Income Tax Bill to boost ease of doing business.
• FDI limit in insurance increased from 74% to 100% to attract global investment.

5. Agriculture & Rural Economy Empowerment

• Kisan Credit Card (KCC) limit increased to ₹5 lakh to support farmers.
• 1.7 crore farmers to benefit from a new agriculture program.
• Launch of a comprehensive program for fruits & vegetable farming.

6. Support for Gig Workers & Employment

• 1 crore gig workers to get official recognition & social security benefits.

7. Major Tax & Customs Reforms

• 36 life-saving drugs to be fully exempted from duties & taxes.
• 7 tariff rates removed to streamline trade.

8. 8. Energy & EV Push

• ₹10,000 crore allocated for EV battery manufacturing incentives.
• Nuclear energy capacity to reach 100 GW by 2047.

9. Tourism & Global Outreach

• Visa-free waivers for select foreign tourists.
• Top 50 tourist destinations to be developed in collaboration with states.
• Launch of Export Promotion Mission to boost international trade.

10. Stock Market Open on Budget Day

Despite being a Saturday, BSE and NSE remained open on February 1, 2025, to facilitate trading post-budget announcements.