Explore the key highlights of the Union Budget 2025-26, including changes in direct and indirect taxes, new tax incentives, and strategic economic initiatives.
Direct Tax Highlights
Indirect Tax Highlights
Economic Initiatives
FAQs on Union Budget 2025-26
Key changes and updates in direct taxes as per the Union Budget 2025-26.
Income Tax Slabs
Revised income tax slabs for individuals under the new tax regime.
No tax for income up to ₹2.5 lakh.
5% tax for income between ₹2.5 lakh and ₹5 lakh.
10% tax for income between ₹5 lakh and ₹10 lakh.
Tax Incentives for Startups
Extension of tax benefits for eligible startups under Section 80-IAC.
Eligible startups can avail tax benefits until March 31, 2026.
Incorporation date for eligibility extended to March 31, 2026.
Startups can claim a 100% tax deduction on profits for three consecutive years.
Taxation on Digital Assets
New tax provisions for income from digital assets.
30% tax on income from transfer of digital assets.
No deductions allowed except cost of acquisition.
1% TDS on transactions above ₹50,000 per annum.
Corporate Tax Changes
Updates in corporate tax rates and surcharges.
Corporate surcharge reduced from 12% to 10%.
Alternate Minimum Tax (AMT) for cooperative societies reduced to 15%.
No change in base corporate tax rate of 25% for domestic companies.
Overview of changes in GST and customs duties as per the Union Budget 2025-26.
GST Amendments
Important amendments to the GST Act and compliance deadlines.
Amendments to be made by November 30 of the following year.
Cancellation of GSTIN for non-filing of returns for two consecutive tax periods.
Introduction of GSTR-2C for communication of inward supplies.
Customs Duty Revisions
Changes in customs duty to promote domestic manufacturing.
Concessional customs duty on capital goods phased out.
7.5% customs duty imposed on specified electronic items.
Duty exemption on import of certain agricultural products removed.
GST Revenue Collection
Record GST revenue collection and its implications.
GST revenue collection reached ₹1.5 lakh crore in January 2025.
Highest monthly collection since GST implementation.
Reflects strong economic recovery and compliance.
Simplification of Tax Credits
Streamlining of input tax credit processes.
Removal of Sections 42, 43, and 43A related to tax credit matching.
Simplified process for claiming input tax credits.
Enhanced transparency in credit utilization.
Strategic economic initiatives announced in the Union Budget 2025-26.
Infrastructure Development
Increased allocation for infrastructure projects.
₹10 lakh crore allocated for national highway projects.
Focus on urban infrastructure and smart cities.
Public-private partnerships encouraged for project execution.
Digital Economy Boost
Initiatives to enhance the digital economy.
₹5,000 crore allocated for digital infrastructure development.
Incentives for startups in the fintech sector.
Promotion of digital payments and e-governance.
Healthcare Sector Investment
Increased funding for healthcare and medical research.
₹2 lakh crore allocated for healthcare infrastructure.
Focus on research and development in pharmaceuticals.
Expansion of health insurance coverage under Ayushman Bharat.
Education and Skill Development
Investments in education and skill development programs.
₹1 lakh crore allocated for education sector reforms.
Emphasis on vocational training and skill development.
Digital education initiatives for remote learning.
What are the new income tax slabs for FY 2025-26?
The new income tax slabs for FY 2025-26 under the new regime are: No tax for income up to ₹2.5 lakh, 5% for income between ₹2.5 lakh and ₹5 lakh, and 10% for income between ₹5 lakh and ₹10 lakh.
How does the new tax regime differ from the old regime?
The new tax regime offers lower tax rates but does not allow most deductions and exemptions. The old regime has higher rates but allows deductions like ₹1.5 lakh under Section 80C.
What is the tax rate on digital assets for FY 2025-26?
Income from digital assets is taxed at a flat rate of 30% with no deductions allowed except for the cost of acquisition. Additionally, a 1% TDS is applicable on transactions exceeding ₹50,000 per annum.
Are there any changes in corporate tax rates?
Yes, the corporate surcharge has been reduced from 12% to 10%. However, the base corporate tax rate remains unchanged at 25% for domestic companies.
What are the major changes in GST compliance?
Key changes include amendments to be made by November 30 of the following year, introduction of GSTR-2C, and cancellation of GSTIN for non-filing of returns for two consecutive tax periods.
How will the customs duty changes affect imports?
The phasing out of concessional customs duty on capital goods and imposition of a 7.5% duty on specified electronic items aim to promote domestic manufacturing and reduce dependency on imports.
What initiatives are being taken for infrastructure development?
The government has allocated ₹10 lakh crore for national highway projects, focusing on urban infrastructure and smart cities, with an emphasis on public-private partnerships.
How is the healthcare sector being supported in the budget?
The budget allocates ₹2 lakh crore for healthcare infrastructure, with a focus on research and development in pharmaceuticals and expansion of health insurance coverage under Ayushman Bharat.
What are the incentives for startups in the digital economy?
The budget provides ₹5,000 crore for digital infrastructure development and offers incentives for startups in the fintech sector, promoting digital payments and e-governance.
How does the budget support education and skill development?
With ₹1 lakh crore allocated for education sector reforms, the budget emphasizes vocational training, skill development, and digital education initiatives for remote learning.