In the Union Budget 2025 presented by Finance Minister Nirmala Sitharaman, significant changes were introduced to the income tax structure to provide relief to taxpayers and stimulate economic growth. The new tax brackets under the revised regime are as follows:
Old and New Tax Slab Comparison
| Income (in Rs 1 lakh) | Tax (%) |
|---|---|
| 0-3 | 5 |
| 3-5 | 7 |
| 5-7 | 10 |
| 7-10 | 15 |
| 10-12 | 20 |
| More than 15 | 30 |
| Income (in Rs 1 lakh) | Tax (%) |
|---|---|
| 0-12 | 12 |
| 12-15 | 15 |
| 15-20 | 20 |
| 20-25 | 25 |
| More than 25 | 30 |
These adjustments aim to enhance disposable income for individuals, thereby boosting consumption and contributing to overall economic development.
On February 1, 2025, Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2025-26, focusing on enhancing middle-class spending power, promoting inclusive development, and boosting private investment to support economic growth.
Key Announcements:
1. Infrastructure Development: A provision of ₹1.5 lakh crore as interest-free loans spanning 50 years to states for developing infrastructure.
2. Asset Monetization: Introduction of a fresh asset monetization initiative for the period 2025-30, aiming to generate ₹10 lakh crore capital for new ventures.
3. Artificial Intelligence in Education: Allocation of ₹500 crore towards establishing an artificial intelligence center of excellence focused on education.
4. Agriculture and Rural Development: A mission to boost farm productivity with a focus on high-yield crops and raising the limit for subsidized credit for farmers.
5. Tax Reforms: Significant tax reforms planned to assist the poor, youth, farmers, and women, aiming to ease individual burdens and stimulate consumption.
These initiatives reflect the government's commitment to fostering economic growth, supporting various sectors, and addressing the needs of diverse demographics across the nation.
Note: The above information is based on the latest available data and is subject to official confirmation.
Social Plugin