Finance Minister Presents Budget 2025-26

On 1st February 2025, Finance Minister presented the first full-fledged budget of the third term of the NDA government, with key proposals aimed at reducing taxes and boosting the economy.

Key Points

Nil Tax Slab Expansion: The Nil Tax Slab is now extended up to 12 lakh rupees, with a total income of 12.75 lakh rupees for salaried individuals being tax-free after including the standard deduction of 75,000 rupees.
New Income Tax Slabs:
- No tax for income up to 4 lakh rupees
- 5% tax for 4 to 8 lakh rupees
- 10% tax for 8 to 12 lakh rupees
- 15% tax for 12 to 16 lakh rupees
- 20% tax for 16 to 20 lakh rupees
- 25% tax for 20 to 24 lakh rupees
- 30% tax for income above 24 lakh rupees
Tax Relief for Senior Citizens: The tax deduction limit on interest for senior citizens is doubled from 50,000 to 1 lakh rupees.
TDS on Rent: The annual TDS limit on rent is raised from 2.4 lakh rupees to 6 lakh rupees, reducing the burden on small taxpayers.
Revenue Impact: The government will forgo 1 lakh crore rupees in direct taxes and 2600 crore rupees in indirect taxes as a result of these changes.
Economic Growth Focus: The budget aims at accelerating growth, inclusive development, and enhancing the spending power of the middle class to stimulate consumption, savings, and investment.