In her Budget 2025 presentation, Finance Minister Nirmala Sitharaman proposed major changes to the income tax structure, with the introduction of a new tax regime and a proposed new tax bill. Under the new regime, those earning up to Rs 12 lakh will not be subject to any income tax, while the tax rates for higher income earners will also see a significant reduction. Additionally, the finance minister also announced plans to make life-saving drugs cheaper and offered interesting budget trivia tidbits, such as cricketer Yuzvendra Chahal's career as an income tax officer. Stay tuned for more updates on these significant changes to income tax in India.
Major Changes Proposed to India's Income Tax Structure
In her Budget 2025 presentation, Finance Minister Nirmala Sitharaman unveiled sweeping changes to the country's income tax system. The new measures aim to simplify the tax code, reduce the tax burden on low- and middle-income earners, and boost economic growth.
Key Features of the New Tax Regime
Background and Significance
The proposal for major changes to India's income tax system has been in the works for several years. The government has cited the need to simplify the tax code, reduce tax avoidance, and boost economic growth as key reasons for the overhaul.
The new tax regime is expected to benefit millions of low- and middle-income earners in India. By increasing the tax exemption threshold and reducing tax rates, the government aims to put more disposable income into the hands of these individuals, thereby stimulating consumer spending and economic activity.
Government Initiatives to Support Taxpayers
In addition to the introduction of a new tax regime, the government has also announced several other measures to support taxpayers, including:
Top 5 FAQs and Answers
1. When will the new tax regime come into effect? The new tax regime is expected to come into effect from April 1, 2025.
2. What are the benefits of opting for the new tax regime? The new tax regime offers a higher tax exemption threshold and lower tax rates, which can result in significant savings for taxpayers.
3. Can I still claim deductions and exemptions under the new tax regime? No, the new tax regime eliminates most deductions and exemptions.
4. Will I be able to switch back to the old tax regime if I opt for the new one? No, once you opt for the new tax regime, you will not be able to switch back to the old one.
5. Is there any additional support available for taxpayers? The government has announced several initiatives to support taxpayers, including cheaper life-saving drugs and simplified tax filing procedures.
President Donald Trump enacts stiff tariffs on imports from Mexico, Canada, and China, sparking a trade war with America's North American neighbors. Outgoing Canadian Prime Minister Justin Trudeau retaliates with a 25% tariff on USD 155 billion worth of American imports, while Mexican President Claudia Sheinbaum vows to respond with tariffs of her own. The move has potential consequences for the global economy and may hinder Trump's efforts to lower consumer prices, despite his claims of protecting Americans and curbing illegal activity.
During her Union Budget 2025 speech, Finance Minister Nirmala Sitharaman announced that no income tax will be payable on income up to Rs 12 lakh, providing significant relief to taxpayers, especially the middle class. However, this exemption only applies if a taxpayer takes relief under various sections of the income tax act. No major announcements were made for the railway sector, as the budget focuses more on increasing allocations for railways over highways.
With the announcement of the new tax regime, Finance Minister Nirmala Sitharaman has announced significant changes to the slabs and rates to benefit all taxpayers. Under the new system, taxpayers with normal income up to Rs 12 Lakhs will not have to pay any taxes, and those with income up to Rs 4 Lakhs will be exempted. The time limit for filing returns has also been extended to 4 years.
The Bharatiya Janata Party (BJP) has launched an aggressive campaign targeting the Aam Aadmi Party (AAP) ahead of the February 5 elections in Delhi. The BJP is projecting itself as the only solution to the capital's issues, accusing the AAP government of mismanagement and neglect in several key areas. The BJP is promoting a "double-engine government" with a BJP-led administration in both Delhi and the Centre, claiming it will ensure faster and more effective development. The AAP, BJP, and Congress are all vying for victory in the upcoming elections.
Indian Prime Minister, Shri Narendra Modi, inaugurated the 2550th Bhagwan Mahaveer Nirvan Mahotsav in New Delhi and paid tribute to the Jain saint by releasing a commemorative stamp and coin. He praised the youth for their commitment towards the values of Bhagwan Mahaveer and stated that India will continue to celebrate these values for thousands of years. Modi also acknowledged the importance of spiritual teachings in a world plagued by numerous wars. He expressed his belief that India's identity lies in its pride and that modernity is its body and spirituality its soul.
Parliamentarians from various parties have hailed the Union Budget 2025 for its inclusive development approach and focus on key areas such as infrastructure and economic growth. Special attention has been given to the state of Bihar, with MPs expressing gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for their commitment to a 'Viksit Bharat'. While critics have linked these provisions to the upcoming Bihar elections, former Union Minister Ravi Shankar Prasad defended the budget, stating that the state deserves these developments regardless.
Zakia Jafri, the wife of former Congress MP Ehsan Jafri who was killed in the Gujarat riots, passed away at the age of 86. She was a determined activist who fought for justice for the victims of the post-Godhra riots and filed a legal battle in the Supreme Court to hold top political leaders accountable for their role in the violence. Her passing is a loss for the human rights community and her legacy will be remembered by family, friends, and the nation.
Zakia Jafri, a survivor of the Gulberg Society massacre during the 2002 Gujarat riots, has died at the age of 86 due to age-related issues. She has been a prominent figure in the fight for justice for the victims of the riots and had filed a plea in the Supreme Court against the clean chit given to then Gujarat CM Narendra Modi. The FM has announced income tax rebates and lower tax rates for various income categories.
In her Union Budget 2025 speech, Finance Minister Nirmala Sitharaman announced a revamp of the existing PM SVANidhi scheme for street vendors, aimed at boosting incomes for the urban poor. The revamped scheme will offer enhanced loans from banks, UPI-linked credit cards with a limit of Rs 30,000, and capacity-building support. The minister also announced the setting up of an 'Urban Challenge Fund' of Rs 1 lakh crore and an allocation of Rs 10,000 crore for 2025-26 to finance and implement proposals for cities as growth hubs.
Finance Minister Nirmala Sitharaman's Union Budget 2025-26 announcement has sparked excitement in Bihar as the state received noteworthy developments, including Greenfield airports, aid for farmers, and a boost in economic progress. As Assembly elections approach, netizens have taken to social media with hilarious memes and witty reactions, including Swiggy's clever post celebrating "Bihar supremacy." One user even humorously shared an edited image depicting a futuristic Bihar under the Budget's influence.