Union Budget 2025: Nirmala Sitharaman Unveils Key Announcements
Following the presentation of the Union Budget 2025 by Union Finance Minister Nirmala Sitharaman, Prime Minister Narendra Modi praised it as a “people’s Budget that will boost savings and investment.” The Finance Minister included significant reforms, especially benefiting the middle class, including major changes to income tax slabs. Let’s delve into the major announcements and their impact on taxpayers and investors.
Income Tax Slabs and Rates Updated
The new tax slabs will provide considerable relief to the middle class, ensuring that individuals with income up to Rs 12 lakh will be exempt from income tax. This reduction in tax liability aims to encourage more savings and investments among taxpayers.
Income Tax Slabs and Rates Budget 2025 LIVE: Watch Here
The annual limit on tax deducted at source (TDS) for rent payments has been significantly increased. Now, taxpayers can receive up to Rs 6 lakh as rent without being subjected to TDS, which will benefit those who receive smaller rental payments.
New Income Tax Bill and Scrutiny System
In a bid to streamline tax compliance and simplify the process for taxpayers, the government will introduce a new Income Tax bill next week. The focus of this reform is on the concept of “trust first, scrutinise later,” which aims to foster transparency and reduce unnecessary hassles for law-abiding citizens.
FDI Limits Hiked in Insurance Sector
To enhance foreign investment in the Indian insurance sector and foster growth, the government has decided to increase the Foreign Direct Investment (FDI) limit from 74% to 100%. This move is expected to attract more international investment, thereby boosting the insurance industry.
Budget 2025 Highlights: Know Key Announcements Here
A Look at the Updated Income Tax Slabs
The revised income tax slabs are designed to incentivize savings and investment among a broader segment of taxpayers. The new slabs will make it more feasible for individuals to save and invest without the burden of high tax liabilities.
These changes reflect the government’s commitment to making the tax system more equitable and supportive of middle-class aspirations. The reduction in tax rates and increased TDS limits will undoubtedly ease the financial burden on millions of Indians.
Conclusion
The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, includes several significant reforms aimed at boosting savings, investment, and overall economic growth. The enhancements in tax slabs, FDI limits, and the introduction of a new scrutiny system demonstrate the government’s dedication to creating a more investor-friendly and equitable tax environment.
These measures are expected to have a considerable positive impact on the economy and individual financial well-being, making this budget a crucial milestone for India’s fiscal policy.
As these reforms are implemented, it will be interesting to see their impact on the economy and on the lives of Indians.
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