Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 in Parliament today, marking her eighth budget and the first of Prime Minister Narendra Modi’s third term. This year’s budget emphasizes economic growth, tax reforms, infrastructure expansion, and key welfare initiatives. With a focus on sustainable development and fiscal stability, it aims to drive investment, boost employment, and strengthen India’s economic trajectory in the coming years.
The Union Budget 2025–26 reduces customs duties on life-saving drugs, electronics, EV and mobile phone battery components, cobalt, and leather goods, making them cheaper. It also extends customs duty exemptions for ship manufacturing materials and reduces duties on marine products, fish pasteurii, and LEDs. However, customs duties on interactive flat panel displays, knitted fabrics, and flat panel displays have been increased, leading to higher prices for these products.
In a major relief for taxpayers, Finance Minister Nirmala Sitharaman announced that under the new tax regime, income up to Rs 12 lakh (Rs 12.75 lakh with standard deductions) will be tax-free. New tax slabs have also been introduced, with rates ranging from 10% to 30% for higher income brackets. A new direct tax code will be launched next week to simplify compliance, scrap financial year confusion, and introduce a 5% tax on LIC income. The option to choose between old and new regimes will be removed, making this a historic shift in India’s tax system!
The Indian government is set to introduce a new Direct Tax Code next week, aimed at simplifying tax laws and reducing legal disputes. Finance Minister Nirmala Sitharaman confirmed Today (Feb 1), while presenting the Union Budget 2025 that the new tax law will be “simple to understand” and could bring major changes, including scrapping financial years, taxing LIC policy income, and standardizing dividend and high-income tax rates. This move follows extensive public consultation and review by expert committees.
Finance Minister Nirmala Sitharaman will present her 8th consecutive Union Budget Today-February 1, 2025, at 11 a.m., moving closer to Morarji Desai’s record of 10 budgets. The budget is expected to boost economic growth, encourage spending, and control the fiscal deficit. As per the Economic Survey 2024-25, India’s GDP is projected to grow between 6.3% and 6.8% in 2025-26, slightly higher than this year’s 6.4% estimate.
Budget 2025 is expected to bring major changes, including lower taxes for those earning up to Rs 10 lakh annually, a push for affordable electric vehicles, and a fivefold increase in the minimum EPFO pension to Rs 5,000. With trade unions demanding an 8th Pay Commission and higher taxes on the super-rich, the budget aims to address economic slowdown and boost household savings.