Finance Minister Nirmala Sitharaman unveiled the Union Budget 2025-26 with a focus on simplification and sectoral reforms. Key highlights include no income tax for earnings up to ₹12 lakh under the new regime, increased standard deduction for salaried individuals, and significant direct tax rationalizations. Indirect tax reforms removed seven tariff rates and exempted social welfare surcharge on 82 items. MSMEs saw increased investment limits, new credit initiatives, and a ₹10,000 crore fund. The budget also allocated funds for healthcare expansions, education improvements, infrastructure projects, and agriculture reforms, aiming to stimulate economic growth and development across various sectors. Here’s a simplified breakdown:
Direct Tax Updates
1. No Income Tax for Earnings up to ₹12 Lakh (New Tax Regime)
2. Salaried individuals get an extra ₹75,000 standard deduction, making the effective tax-free limit ₹12.75 lakh.
3. Government to forego ₹1 lakh crore in direct tax revenue.
4. New Income-Tax Bill aims to simplify tax laws.
5. Two Self-Occupied Properties can now be valued at Nil for tax purposes (up from one).
6. TDS Threshold on Rent rose to ₹6 lakh (from ₹2.4 lakh).
7. TCS on Education Loans up to ₹10 lakh removed for loans from specified financial institutions.
8. Time Limit for Updated Returns extended from 2 years to 4 years.
9. New Income Tax Bill to be introduced next week, focusing on simplification and ease of compliance.
10. TDS/TCS Rationalization: Reduced number of rates and adjusted thresholds to benefit the middle class.
11. Faceless Assessment and Taxpayer Charter to continue, with 99% of returns processed based on self-assessment.
Indirect Tax Changes
1. Seven tariff rates removed to simplify taxation.
2. Social Welfare Surcharge on 82 items with cess exempted.
MSME Growth & Support
1. Investment & Turnover Limits for MSME classification increased by 2.5x and 2x, respectively.
2. Custom Credit Cards for Micro Enterprises (₹5 lakh limit, 10 lakh cards to be issued in 1st year).
3. New ₹10,000 crore Fund of Funds to support MSMEs.
4. Term Loans up to ₹2 crore for 5 lakh women, SC/ST first-time entrepreneurs over 5 years.
5. Focus Product Scheme aims to create 22 lakh jobs and ₹4 lakh crore in turnover.
6. Toy Manufacturing Mission to make India a global hub.
7. National Institute of Food Technology to be set up in Bihar.
8. National Manufacturing Mission under “Make in India.”
Healthcare & Education
1. 10,000 additional medical seats in 2025-26; 75,000 seats targeted in 5 years.
2. 200 new cancer centers to be established.
3. 50,000 Atal Tinkering Labs in govt schools; broadband for all secondary schools.
Infrastructure & Economy
1. Fiscal deficit target: 4.8% (FY25), 4.4% (FY26).
2. ₹1 lakh crore Urban Challenge Fund for city growth hubs.
3. Modified UDAN scheme to connect 120 new destinations.
4. 100GW nuclear energy target by 2047.
Insurance Sector
1. Foreign Direct Investment (FDI) in insurance rose to 100% from 74%, attracting more international investment.
Agriculture Reforms
1. PM Dhan-Dhaanya Krishi Yojana to benefit 1.7 crore farmers across 100 districts.
2. Mission for Atma Nirbharta in Pulses (6-year plan) to boost production of Tur, Urad, and Masoor.
3. NAFED & NCCF to procure pulses for the next 4 years.
4. Makhana Board in Bihar to enhance fox nut production and marketing.
5. New Urea Plant (12.7 lakh metric tonnes) to be set up in Namrup, Assam
Government Finances
1. Total Revenue (Excluding Borrowings): ₹96 lakh crore
2. Total Expenditure: ₹65 lakh crore
3. Net Tax Receipts: ₹37 lakh crore
4. Fiscal Deficit:4% of GDP
5. Capital Expenditure: ₹21 lakh crore (3.1% of GDP)
Boosting Investments & Development
1. 50,000 ATAL Tinkering Labs in government schools in 5 years.
2. Broadband for all rural government schools & health centers via BharatNet.
3. 5 IITs to expand infrastructure for 6,500 more students.
4. AI Excellence Centre for Education (₹500 crore investments).
5. 10,000 More Medical Seats next year; 75,000 new seats over 5 years.
6. Revamped PM Swanidhi Scheme: Higher bank loans, UPI-linked ₹30,000 credit cards, and capacity-building.
7. Support for Gig Workers: ID cards, e-Shram registration, and PM Jan Arogya Yojana benefits.
8. 3-Year Infrastructure Pipeline for Public-Private Partnership (PPP) projects.
9. ₹5 Lakh Crore Fund for 50-year interest-free loans to states for infrastructure.
New Growth Initiatives
1. Asset Monetization Plan (2025-30): ₹10 lakh crore for new projects.
2. Nuclear Energy Mission: ₹20,000 crore for Small Modular Reactors (SMRs), 5 to be operational by 2033.
3. UDAN Expansion: 120 new regional air routes, 4 crore passengers in 10 years.
4. SWAMIH Fund 2: ₹15,000 crore to complete 1 lakh pending housing units.
5. Bharat Trade Net (BTN): Unified platform for international trade documentation and financing.
Women & Youth Empowerment
1. New scheme for SC/ST women offering 5-year term loans.
2. 5 National Centres of Excellence for Skilling to equip youth.
3. Saksham Anganwadi & Poshan 2.0 to benefit 8 crore children & 1 crore mothers.
Tourism & Culture
1. Home stays to get Mudra loans; medical tourism to be prom
2. Top 50 tourist destinations to be developed with states.
Green Energy & Sustainability
1. Incentives for renewable energy projects.
2. Mission for solar PV cells, electrolysers, and grid-scale batteries.
This budget aims to boost disposable income, promote entrepreneurship, strengthen agriculture, and modernize infrastructure, creating long-term economic growth and development.
This is purely and solely my view and opinion.
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