What Gets Costlier?
— Flat Panel Displays – BCD increased from 10% to 20%, impacting TVs and mobile phones.
— Social Welfare Surcharge – Exemption removed on 82 tariff lines currently under cess.
What Gets Cheaper?
— Cancer, chronic diseases medicines – 36 life saving drugs fully exempted from basic custom duties.
— Electronic Goods /Mobiles– The FM announced reduction of BCD (basic customs duty) to 5 per cent for open cells and other components.
— Cobalt powder and waste, scrap of lithium-ion battery, Lead, Zinc and 12 more critical minerals to be exempted from Basic Customs Duty (BCD).
— EVs – 35 additional goods for EV battery manufacturing, and 28 additional goods for mobile phone battery manufacturing to be added to list of exempted capital goods.
— Leather goods – Wet Blue leather to be fully exempted from Basic Customs Duty
— Surimi – BCD on Frozen Fish Paste (Surimi) to be reduced from 30 per cent to 5 per cent for manufacture and export of its analogue products
— Handicrafts: To facilitate exports of handicrafts, the time period for export has been extended from six months to one year, further extendable by another three months, if required. Nine items have been added to the list of duty-free inputs.
— Fabrics: To promote domestic production of technical textile products such as agro-textiles, medical textiles and geo textiles at competitive prices, two more types of shuttle-less looms have been added to the list of fully exempted textile machinery. The BCD rate on knitted fabrics covered by nine tariff lines have been changed from “10% or 20%” to “20% or 115 per kg, whichever is higher”.
NBEW TAX SLABS
— Income up to Rs 4,00,000: Nil
— Income from Rs 4,00,001 to Rs 8,00,000: 5%
— Income from Rs 8,00,001 to Rs 12,00,000: 10%
— Income from Rs 12,00,001 to Rs 16,00,000: 15%
— Income from Rs 16,00,001 to Rs 20,00,000: 20%
— Income from Rs 20,00,000 to Rs 24,00,000: 25%
— Income above Rs 24,00,000: 30%
**Note
— No income tax payable on income up to Rs 12 lakh
— No income tax payable for Rs 12.75 lakh for salaried taxpayers
— Under new tax regime, tax on income up to Rs 4 lakh is 0%
NEW DELHI: Reflecting the ‘Viksit Bharat’ plan of Modi government 3.0, Finance minister Nirmala Sitharaman announced a big tax relief for the middle class. She proposed no income tax for individuals who earn up to Rs 12 lakh. The changes have been proposed under the new tax regime. The finance minister also proposed new income tax bill, which she said will be tabled in Parliament next week.
New tax bill will be simple to understand for taxpayers, the FM said. Sitharaman also proposed to make 36 life-saving drugs cheaper, including cancer medicines. The finance minister began presenting Budget 2025-06 amid ruckus by Opposition in Parliament.
Government sources said that the decision to raise the ‘Nil tax’ slab to income of Rs 12 lakh will persuade more people to move to the New Tax Regime. In AY 2024-25, out of the total ITRs of 7.28 crore filed for AY 2024-25, 5.27 crore (72%) were filed in the New Tax Regime compared to 2.01 crore ITRs filed in the Old Tax Regime, they said.
Sitharaman on Saturday made history as she presented a record eighth consecutive budget, which comes in the backdrop of slowdown in economy and demand for tax cuts for middle class. This will take Sitharaman closer to the record of 10 budgets that were presented by former Prime Minister Morarji Desai over different time periods. Desai has presented a total of six budgets during his tenure as finance minister from 1959 to 1964, and four budgets between 1967 and 1969.
Union Budget 2025 | Key points
-Key announcements of Budget 2025: Among the key measures of Budget 2025, Nirmala Sitharaman announced new classification criteria for MSMEs, a modified ‘Udaan’ scheme, focused scheme for to promote footwear and leather sectors and addition of 75,000 medical seats in the next five years.
Agriculture: In the agriculture sector, she said, the government will undertake the Pradhan Mantri Dhan Dhanya Krishi Yojana. This scheme is aimed at enhancing productivity, adopting crop diversification and augmenting post-harvest storage at the panchayat and block level, she said. It will also bolster to bolster irrigation and improve the availability of short- and long-term credit to farmers.
The minister said the government would introduce customised credit cards with Rs 5 lakh limit for registered micro-enterprises. New schemes will be launched for about 5 lakh women and backward communities entrepreneurs, she said.
FM expands safe harbour rules for clearer international taxation.
Budget 2025 Live: The Finance Minister has introduced a scheme aimed at determining the arm’s length price for international transactions over a block period of three years. This initiative is designed to provide greater clarity and reduce the frequency of annual examinations for international transactions. The scope of safe harbour rules is being expanded to minimize litigation and offer more certainty in international taxation. These measures are expected to simplify the tax process for multinational companies and promote smoother cross-border trade.
Electronics: In a move to further enhance India’s electronics manufacturing capabilities, Finance Minister Nirmala Sitharaman announced crucial reductions in import duties on several key components in the Union Budget 2025. These changes are expected to make mobile phones, smart LED TVs, and other electronic devices more affordable, while bolstering the country’s position in global supply chains. Specifically, the BCD on mobile phones, mobile phone chargers, and mobile printed circuit board assemblies (PCBAs) has been cut from 20% to 15%.
-Budget Session 2025 in 2 phases: The Budget Session 2025 of Parliament commenced on Friday, January 31, with President Droupadi Murmu’s address to both Houses. According to the Parliamentary Bulletin, the Budget Session will be in two phases: The first that began January 31 includes the Union Budget presentation on February 1 and will conclude on February 13; the second part of the session will commence on March 10 and will conclude on April 4.
-Stock market opens flat ahead of Budget 2025: Hours before the presentation of Union Budget 2025, stock market opened flat on Saturday. Stock market is open on Saturday in a special session for the Union Budget.
Big tax relief for senior citizens
Budget 2025 Live: Limit for tax deduction on interest income to be doubled to Rs 1 lakh for senior citizens; limit for TDS on rent to be increased to Rs 6 lakh.
Patient assistance programs
Budget 2025 Speech Live Updates: Patient Assistance Programs: Patient assistance programs run by pharmaceutical companies will be fully exempt from Basic Customs Duty (BCD), provided the medicines are supplied free of cost to the patients. Additionally, 37 new medicines and 13 new patient assistance programs will be included in the exemption list.
Big relief for patients
To provide relief for cancer patients, those suffering from rare diseases, and chronic conditions, the government will add 36 life-saving drugs to the list of medicines fully exempt from basic customs duty.
Six life-saving medicines will be added to a list with a concessional customs duty of 5%.
Full exemption and concessional duty will apply to bulk drugs used for manufacturing these medicines.
New Income tax bill to be introduced next week
Budget 2025 Speech Live: Finance Minister Nirmala Sitharaman highlighted the government’s decade-long efforts in implementing tax reforms to enhance taxpayer convenience. Key measures include faceless assessment, the taxpayer charter, and faster processing of returns, with nearly 99% of returns being based on self-assessment. Reaffirming the tax department’s approach of “trust first, scrutinize later,” she emphasized the continued commitment to easing compliance. Additionally, she announced that a new income tax bill will be introduced next week, furthering the government’s reform agenda.
Nuclear Energy Mission to drive India’s transition towards clean energy
Budget 2025 Live Updates: The Finance Minister announced a Nuclear Energy Mission to drive India’s transition towards clean energy, with a goal of developing at least 100 GW of nuclear power by 2047. To facilitate greater private sector participation, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be introduced. Additionally, a dedicated research and development initiative for Small Modular Reactors (SMRs) will be launched with an outlay of ₹20,000 crore. As part of this mission, at least five indigenously developed SMRs are expected to be operational by 2033.
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Daycare cancer centres in all district hospitals
The Finance Minister announced the establishment of daycare cancer centres in all district hospitals over the next three years to enhance cancer care accessibility. In FY 2025-26 alone, 200 centres will be set up. Additionally, the government is committed to strengthening urban livelihoods, with a continued focus on supporting the urban poor and vulnerable groups through various initiatives aimed at providing economic stability and employment opportunities
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Expanding medical education in India
Budget 2025 Live Updates: The Finance Minister highlighted the government’s focus on expanding medical education, noting that over the past 10 years, nearly 1.1 lakh undergraduate and postgraduate medical seats have been added—an increase of 130%. To further strengthen healthcare infrastructure, 10,000 additional seats will be introduced in medical colleges and hospitals in the coming year, as part of a broader plan to add 75,000 seats over the next five years.
