Budget 2025 Highlights: New Tax Regime, TDS Relief, and Senior Citizen Benefits

The Union Budget 2025 has cheered the middle class, farmers, and MSME workers. Finance Minister Nirmala Sitharaman has proposed a new income tax structure that offers considerable tax relief to individuals earning up to Rs. 12 lakhs. This move is expected to ease the financial burden on the middle class, a sector that has been at the heart of India's growth.

Major Highlights of the Budget

Reforms of Income Tax: The new regime has abolished income tax on any amount up to Rs. 12 lakh, bringing substantial relief to salaried individuals and small-time business operators.

TDS Relief for Small Taxpayers: New TDS relief schemes have been announced for the small taxpayer set.

Senior Citizen Relief: TDS is exempted for senior citizens as there has been an enhancement in the exemption limit from Rs. 50,000 to Rs. 1 lakh.

Infrastructure Development: The budget focuses on infrastructural development. It focuses on transportation infrastructure in tourist destinations.

Agricultural Reforms: The government is presenting a six-year plan for increasing pulse production and developing a special board for Makhana farmers of Bihar.

Health and Education: The budget has brought forth new initiatives that will utilize AI in healthcare and education. This budget is proposed to increase medical training facilities along with increasing IIT admissions.

It is proposed that 100% FDI in the insurance sector be allowed for international investments. This move would be in adherence to their overall vision of improving financial and economic infrastructure.

Support for Gig Workers and MSME Growth

The budget incorporates measures to help gig workers, such as health insurance and identity cards. More accessible loans to the MSME sector will also be implemented, as well as special programs for cotton production and other staple crops.

A Vision for Development

Prime Minister Narendra Modi's vision for a developed India, "Vikas Bharat," is in line with the budget's goals of eradicating poverty and fostering inclusive growth. The target for India's GDP growth is set at 6.3% to 6.8% for the fiscal year 2025-26, reflecting an optimistic outlook for the future.

Also read: No Income Tax Upto 12 Lakh: Huge Relief for Tax Payers in Middle Class