Union Budget 2025-26: Key Highlights

Union Budget 2025-26 Highlights

📢 Theme: Sabka Vikas – Balanced Growth for All Regions

Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26, emphasizing inclusive growth, middle-class empowerment, investment stimulation, and global competitiveness. The budget focuses on four key engines of development:

• 🌾 Agriculture & Rural Development
• 🏭 MSMEs & Manufacturing
• 🏗️ Investment & Infrastructure
• 🌍 Exports & Global Trade

📊 Taxation Reforms

Personal Income Tax

No Income Tax for individuals earning up to ₹12 lakh per annum (₹1 lakh per month).

Salaried class earning up to ₹12.75 lakh per annum to pay NIL tax under the new tax regime (including ₹75,000 standard deduction).

New Income Tax Slabs (New Regime)

Annual Income (₹)	Tax Rate (%)
0 – 4 Lakh	NIL
4 – 8 Lakh	5%
8 – 12 Lakh	10%
12 – 16 Lakh	15%
16 – 20 Lakh	20%
20 – 24 Lakh	25%
Above 24 Lakh	30%

Other Taxation Changes

• TDS on Rent: Increased from ₹2.4 lakh to ₹6 lakh per annum.
• Senior Citizens’ Tax Exemption on Interest Income: Increased from ₹50,000 to ₹1 lakh.
• Updated Income Tax Return time limit extended from 2 years to 4 years.

💰 Fiscal Management

• Fiscal Deficit Target for FY 2025-26: 4.4% of GDP.
• Total Receipts (Excluding Borrowings): ₹34.96 lakh crore.
• Total Expenditure: ₹50.65 lakh crore.
• Net Tax Receipts: ₹28.37 lakh crore.

🏭 MSMEs & Manufacturing

• MSME Credit Guarantee increased from ₹5 crore to ₹10 crore.
• Startup Loans: ₹2 crore term loans for 5 lakh women, SC/ST first-time entrepreneurs.
• ‘National Manufacturing Mission’ launched for industries.

🏗️ Investment & Infrastructure

• ₹1 lakh crore Urban Challenge Fund for ‘Cities as Growth Hubs’.
• ₹15,000 crore SWAMIH Fund for completion of stressed housing units.

🌍 Exports & Global Trade

• Export Promotion Mission to support MSMEs in global markets.
• BharatTradeNet (BTN): A unified trade documentation & financing platform.

⚡ Energy & Technology

• ₹20,000 crore allocated for Nuclear Energy Mission.
• Exemption on capital goods for EV & mobile battery manufacturing.

⚕️ Healthcare & Welfare

• Gig Workers’ Healthcare: Coverage under PM Jan Arogya Yojana.
• Customs Duty Exemptions on life-saving drugs.

🚢 Customs & Import Duty Changes

• BCD on IFPD (Interactive Flat Panel Displays) increased to 20%.
• Import Duty Reduction on frozen fish paste from 30% to 5%.

Disclaimer: The information provided in this article is for general informational purposes only. While efforts have been made to ensure accuracy, readers are advised to consult official government sources or financial advisors before making any financial decisions.