Explore the major highlights and changes in the Indian Budget 2025, including direct and indirect tax proposals, sectoral priorities, and more.
Direct Tax Proposals
Indirect Tax Proposals
Sectoral Highlights
FAQs on Budget 2025
Enhanced Standard Deduction and Family Pension Deduction
The new tax regime offers increased deductions for salaried individuals and pensioners.
Standard deduction increased to ₹75,000 from ₹50,000.
Family pension deduction increased to ₹25,000 from ₹15,000.
Applicable only under the new tax regime.
Revised Tax Structure
The new tax regime introduces revised income tax slabs.
Income up to ₹3 lakh: Nil tax rate.
Income between ₹3 lakh to ₹7 lakh: 5% tax rate.
Income above ₹15 lakh: 30% tax rate.
Capital Gains Taxation Simplified
Changes in the classification and taxation of capital gains.
Long-term holding period for listed securities is 12 months.
Short-term capital gains tax increased to 20% for listed equity shares.
Exemption limit for long-term capital gains increased to ₹1.25 lakh.
Changes in TDS Rates
Adjustments in TDS rates to improve compliance.
Reduced TDS rates on specified payments.
Effective from 1st April 2025.
Aimed at facilitating business operations.
Introduction of TDS on Partner Payments
New TDS provisions for payments to partners by firms.
Applicable under Section 194T.
Ensures transparency in partner remuneration.
Effective from 1st October 2025.
Customs Duties Adjustments
Reductions and exemptions in customs duties for critical goods.
Duty reduction on essential medical equipment.
Exemptions for renewable energy components.
Aimed at boosting domestic manufacturing.
GST Reforms and Amendments
Major reforms in the GST framework to simplify compliance.
Introduction of a single GST return form.
Reduction in GST rates for MSMEs.
Enhanced input tax credit mechanisms.
Agriculture Sector Initiatives
Focus on productivity and resilience in agriculture.
Increased budget allocation for irrigation projects.
Subsidies for organic farming practices.
Support for agri-tech innovations.
Employment and Education
Initiatives to boost employment and enhance educational infrastructure.
Skill development programs for youth.
Increased funding for higher education institutions.
Incentives for startups in the education sector.
Manufacturing and Services
Policies to enhance manufacturing and service sectors.
Tax incentives for manufacturing units.
Support for service sector startups.
Investment in technology and innovation.
What is the new standard deduction for salaried individuals?
For FY 2025-26, the standard deduction for salaried individuals under the new tax regime has been increased to ₹75,000, up from ₹50,000.
How have the income tax slabs changed under the new regime?
The new tax regime introduces revised slabs: income up to ₹3 lakh is tax-free, ₹3 lakh to ₹7 lakh is taxed at 5%, and income above ₹15 lakh is taxed at 30%.
What are the changes in capital gains taxation?
The holding period for long-term capital gains on listed securities is now 12 months, and the exemption limit has increased to ₹1.25 lakh. Short-term gains on listed equity shares are taxed at 20%.
When will the new TDS rates be effective?
The revised TDS rates on specified payments will be effective from 1st April 2025, aiming to improve taxpayer compliance and facilitate business operations.
What is Section 194T about?
Section 194T introduces TDS on payments made to partners by firms, ensuring transparency in partner remuneration. It is effective from 1st October 2025.
How does the budget support the agriculture sector?
The budget focuses on increasing productivity and resilience in agriculture through increased funding for irrigation, subsidies for organic farming, and support for agri-tech innovations.
What GST reforms have been introduced?
Major GST reforms include the introduction of a single GST return form, reduced rates for MSMEs, and enhanced input tax credit mechanisms to simplify compliance.
How is the education sector being supported?
The budget allocates increased funding for higher education, introduces skill development programs for youth, and provides incentives for startups in the education sector.