Budget 2025 highlights: Tax relief for middle class, interest-free loans to States, PM Dhan Dhanya Krishi Yojana for farmers

Finance Minister Nirmala Sitharaman presents growth-focused Budget with tax reforms, MSME support, and infrastructure development initiatives.

Finance Minister Nirmala Sitharaman presented her eighth record Budget in the Lok Sabha that comes in the backdrop of growth slowing down to four-year-low of 6.4%. This is the second Budget of the BJP-led NDA Government in its third term in office.

Ms. Sitharaman started her speech by saying that this Budget will initiate reforms in six domains — taxation, urban development, mining, financial sector, power and regulatory reforms.

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“The Budget focussed on driving growth, inclusive development,” said Ms. Sitharaman

No income tax upto ₹12 lakh under new regime. Effectively, under the new tax regime considering the erstwhile standard deduction of ₹75,000, income of up to ₹12.75 would have no income tax liability

Enumerating revisions in tax slabs, the Finance Minister informed that incomes up to ₹4 lakhs would not be taxed, ₹4-8 lakh would host 5% taxation rate, ₹8-12 lakh 10%, ₹12-16 lakh 15%, ₹16-20 lakh 20%, ₹20-24 lakh 25% and incomes above ₹24 lakh 30%. A tax payer in the new regime with an income of ₹12 lakh will get a benefit of ₹80,000 in tax; a person having income of ₹18 lakh will get a benefit of ₹70,000 in tax; a person with an income of ₹25 lakh gets a benefit of ₹1.10 lakh, Ms. Sitharaman added.

Rationalisation of TDS (Tax Deduction at Source) has been announced regime to ease compliance burden. Taxpayers can claim annual value of self-occupied homes as nil only on certain conditions. This will now be allowed for two such properties without any conditions.