Union Budget 2025 Takeaway |FM Nirmala Sitharaman's tax proposals

Nirmala Sitharaman presented her historic eighth Budget on February 1, 2025.

Finance Minister Nirmala Sitharaman presented her record eighth Budget this year. After the Budget was presented in the Lok Sabha, the FM also presented the document in the Rajya Sabha.

Income Tax has been on everyone's mind, and FM Sitharaman kept this bit for last. She said "New income tax bill will be half of the current volume; clear and direct in wording."

The FM added "Reforms are not destinations but means to achieve good governance for our people and economy," noting that "Tax proposals are guided by income tax reforms for middle class, TDS rationalisation, and easing compliance burden."

- FM Sitharaman announces rationalisation of TDS by reducing rates and number of thresholds

-  Govt to increase TCS on remittances under RBI's Liberalised remittance scheme from Rs 7 lakh to 10 lakh

- Govt exempts TCS for remittances for education purposes in cases where education loan is taken from specified financial institutions

- Govt to extend time limit for filing updated returns for any assessment year from current limit of 2 years to 4 yrs

- 33,000 taxpayers availed Vivad Se Vishwas 2.0 scheme to settle direct tax disputes

- Limit for tax deduction on interest income to be doubled to Rs 1 lakh for senior citizens; limit for TDS on rent to be increased to Rs 6 lakh

- Budget extends period of incorporation by 5 years for Startups to avail tax benefits

These were among her declarations and observations while speaking of taxation.

The Union Budget 2025 is the second Budget presented under the Modi 3.0 government, the first having come after the Lok Sabha elections.

Like the previous Budgets, this has kept in mind the government's goal of Viksit Bharat by 2047.

Yesterday, FM Sitharaman tabled the Economic Survey, which projects India's GDP to grow in the range of 6.3-6.8 per cent.In the last Budget, presented in June after NDA won the Lok Sabha polls, FM proposed new income tax slabs -- up to Rs 3 lakh nil, Rs 3-7L 5%, Rs 7-10L 10%, Rs 10-12L 15%, Rs 12-15L 20%, above Rs 15L 30%.

Fiscal deficit was estimated at 4.9 per cent of GDP and Sitharaman had stated the government aimed to reach 4.5 per cent fiscal deficit in 2025-26.

Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.