On Saturday, February 1, Finance Minister Nirmala Sitharaman presented the Budget for financial year 2025-26. This budget came with various changes and announcement in various fields.
Here are the highlights of Budget:
As quoted by PIB, “Government to bring a framework for sustainable harnessing of fisheries from Indian Exclusive Economic Zone and High Seas, with a special focus on the Andaman & Nicobar and Lakshadweep Islands.” There will be 50,000 installments of Atal Tinkering Labs in the Government schools in 5 years.
Budget Estimate
As quoted by PIB, the Budget estimate for financial year 2025-26 are-
- The total revenue without borrowing is Rs 34.96 lakh crore. The total spending is Rs 50.65 lakh crore.
- The net tax receipt are Rs 28.37 lakh crore.
- The fiscal deficit is to be 4.4 % of the Gross Domestic Product.
- The gross market borrowings are estimated at Rs 14.82 lakh crore.
- Capex Expenditure of Rs 11.21 lakh crore (3.1% of GDP) earmarked in Financial Year 2025-26.
About Direct Tax
There will be no personal income tax payable up to Rs 12 lakh income. The limit for the salaried taxpayer will be Rs 12.75 lakh due to the tax deduction of Rs 75,000. The revised tax structure will lower the burden of tax on middle class and making them to retain more income. The new income tax bill aims to be easy to understand. Revenue of about ₹ 1 lakh crore in direct taxes will be forgone, as per the release.
The TAX Structure:
About TDS/TCS
The release mentions, “Rationalization of Tax Deduction at Source (TDS) by reducing number of rates and thresholds above which TDS is deducted. The limit for tax deduction on interest for senior citizens doubled from the present Rs 50,000 to Rs 1 lakh. The annual limit of Rs 2.40 lakh for TDS on rent increased to Rs 6 lakh. The threshold to collect tax at source (TCS) on remittances under RBI’s Liberalized Remittance Scheme (LRS) increased from Rs 7 lakh to Rs 10 lakh. Decriminalization for the cases of delay of payment of TCS up to the due date of filing statement.”
About The Indirect Tax
As per the release ,the Union Budget has proposed to, “Remove seven tariff rates. This is over and above the seven tariff rates removed in 2023-24 budget. After this, there will be only eight remaining tariff rates including ‘zero’ rate. Apply appropriate cess to broadly maintain effective duty incidence except on a few items, where such incidence will reduce marginally. Levy not more than one cess or surcharge. Therefore Social Welfare Surcharge on 82 tariff lines that are subject to a cess, exempted.”
About Relief On Medicines
As per the release, “36 lifesaving drugs and medicines fully exempted from Basic Customs Duty (BCD). 6 lifesaving medicines to attract concessional customs duty of 5%. Specified drugs and medicines under Patient Assistance Programmes run by pharmaceutical companies fully exempted from BCD; 37 more medicines added along with 13 new patient assistance programmes.”
Also Read: Union Budget 2025: From Amit Shah To Shashi Tharoor – How Political Leaders Reacted?
