Tax Relief in Budget '25? Plus: Industry Changes and New Schemes That Affect You.

Nirmala Sitharaman has officially presented the Budget 2025 on February 1, 2025, shaping the economic landscape for the year ahead. From revised tax slabs to regulatory changes and industry rationalization, here's a breakdown of the key highlights.

Income Tax: No income tax is payable for individuals earning up to ₹12 lakhs. Effective tax paid becomes 0 after claiming rebates. A move aimed at leaving more disposable income in the hands of the middle class. The time limit for updating tax returns has been extended from 2 years to 4 years. Senior citizens have a new income tax deduction limit on interest income of ₹50,000. A new Income Tax Bill will be introduced in the coming week.

Key Numbers: A reduction in the fiscal deficit target to 4.4% of GDP, down from 4.8%. The government's target of capital expenditure for FY26 has been trimmed from ₹11.1 lakh crore to ₹10.18 lakh crore, reflecting a more measured investment outlook. The non-borrowing receipts are estimated at ₹34.96 lakh crore, while the total expenditure is projected at ₹50.65 lakh crore.