NEW INCOME TAX REFORMS (For Individuals & Businesses)
- No Income Tax up to ₹12 Lakh under the new tax regime.
- Revised Tax Slabs for Individuals:
- ₹0-4 lakh – Nil
- ₹4-8 lakh – 5%
- ₹8-12 lakh – 10%
- ₹12-16 lakh – 15%
- ₹16-20 lakh – 20%
- ₹20-24 lakh – 25%
- Above ₹24 lakh – 30%
- Standard Deduction Increased to ₹75,000 for Salaried Individuals.
- TDS/TCS Simplification:
- Senior Citizen Interest Exemption Limit Doubled (₹50,000 to ₹1 Lakh).
- TDS on Rental Income Limit Increased to ₹6 Lakh (from ₹2.4 Lakh).
- No TCS on Education Loans for Foreign Remittance.
- 5-Year Extension of Startup Tax Benefits & Sovereign Fund Investments.
- Tax Certainty for Electronics Manufacturers & Ship-Leasing in IFSC.
- Tonnage Tax Scheme Extended to Inland Water Transport.
- Updated Income Tax Return Filing Time Extended to 4 Years (from 2 years).
- New Income Tax Bill to Reduce Complexity & Litigation.
🔹 MSME SUPPORT & GROWTH (For Businesses & Startups)
- Revised MSME Classification:
- Investment & Turnover Limits Increased by 2.5X for all MSMEs.
- Enhanced Credit Support:
- Credit Guarantee Limit for MSMEs Increased to ₹10 Crore (from ₹5 Crore).
- Startup Credit Guarantee Enhanced to ₹20 Crore (from ₹10 Crore).
- Customized Credit Cards for Micro Enterprises:
- ₹5 Lakh Credit Limit for 10 Lakh MSMEs in 1st Year.
- ₹10,000 Crore Fund of Funds for Startups.
- Scheme for First-Time Entrepreneurs:
- 5 Lakh Women & SC/ST Entrepreneurs to Get Term Loans up to ₹2 Crore.
- Focus Product Scheme for Footwear & Leather Industry:
- Expected to Generate 22 Lakh Jobs & ₹1.1 Lakh Crore in Exports.
- Support for Toy Manufacturing:
- Development of Clusters & ‘Made in India’ Branding.
- National Institute of Food Technology in Bihar:
- Boosting Agri-Processing & Value Addition in Eastern India.
- Manufacturing Mission with Focus on Clean Tech:
- EV Batteries, Solar PV, Wind Turbines, High-Voltage Transmission Equipment.
🔹 EXPORTER BOOST (For Trade & Global Market Access)
- Export Promotion Mission:
- Sector-Specific & Ministerial Targets for Growth.
- BharatTradeNet:
- Digital Public Infrastructure for Trade Documentation & Financing.
- Support for Global Supply Chain Integration:
- Sector-Wise Identification & Strategic Support.
- Air Cargo Infrastructure & Warehousing Expansion:
- Focus on Perishable Agri & Horticulture Exports.
- Simplified Customs & Trade Regulations:
- Time Limit for Finalizing Provisional Assessment Fixed at 2 Years.
- Duty-Free Inputs for Handicrafts Extended by 1 Year.
🔹 INVESTMENT & INFRASTRUCTURE PUSH (For Economic Growth)
- ₹1.5 Lakh Crore Interest-Free Loan for State Infrastructure Development.
- ₹10 Lakh Crore Asset Monetization Plan (2025-2030).
- Jal Jeevan Mission Extended to 2028:
- Target 100% Tap Water for Rural Households.
- Urban Challenge Fund (₹1 Lakh Crore):
- For City Redevelopment & Smart City Expansion.
- Power Sector Reforms:
- Additional 0.5% GSDP Borrowing Limit for States Meeting Reform Targets.
- Nuclear Energy Mission (100GW by 2047):
- ₹20,000 Crore R&D for Small Modular Reactors (SMRs).
- UDAN Scheme Expansion:
- 120 New Destinations, 4 Crore Passengers Over 10 Years.
🔹 AGRICULTURE & RURAL DEVELOPMENT
- Prime Minister Dhan-Dhaanya Krishi Yojana:
- 100 Low-Productivity Districts to Get Modernized Farming Support.
- Mission for Aatmanirbharta in Pulses:
- Tur, Urad, Masoor – Guaranteed Procurement by NAFED & NCCF for 4 Years.
- Comprehensive Programme for Fruits & Vegetables:
- Strengthening Supply Chains & Processing.
- Makhana Board in Bihar:
- Boosting Production, Processing & Marketing.
- National Mission on High Yielding Seeds:
- Strengthening Research & Climate-Resilient Crops.
- Cotton Mission:
- Improving Productivity & Export Potential.
- Kisan Credit Card (KCC) Loan Limit Increased to ₹5 Lakh (from ₹3 Lakh).
- New Urea Plant in Assam (12.7 Lakh Metric Ton Capacity).
- India Post Expansion:
- To Support Rural Banking, Microfinance & Logistics.
🔹 SOCIAL WELFARE & SKILL DEVELOPMENT
- Saksham Anganwadi & Poshan 2.0:
- Nutritional Support for 8 Crore Children & 1 Crore Women.
- 50,000 Atal Tinkering Labs in Government Schools.
- Broadband Connectivity for Government Schools & Primary Health Centers.
- AI Centre of Excellence for Education (₹500 Crore Investment).
- Medical Education Expansion:
- 10,000 New Seats in 2025, Total 75,000 Seats Over 5 Years.
- Day Care Cancer Centres in Every District (200 in 2025-26).
- Gig Worker Social Security:
- 1 Crore Online Platform Workers to Get PM Jan Arogya Yojana Health Coverage.
🔹 FINANCIAL & REGULATORY REFORMS
- FDI in Insurance Sector Increased from 74% to 100%.
- India Post Payment Bank Expansion in Rural Areas.
- Grameen Credit Score for Rural Entrepreneurs.
- Investment Friendliness Index for States.
- High-Level Committee for Reducing Business Regulations.
- Bilateral Investment Treaties Revamped for Investor-Friendly Approach.
🔹 CUSTOMS & TRADE FACILITATION
- Duty-Free Imports of 36 Lifesaving Medicines & Cancer Drugs.
- Zero Duty on Critical Minerals for Green Tech & EV Batteries.
- Customs Duty Reductions on Shipbuilding, Renewable Energy Equipment.
- Time Limit for Finalizing Provisional Assessment Fixed at 2 Years.
- Simplified Taxation for Electronics Manufacturing & Renewable Energy Companies.
🔹 CONCLUSION
- Budget 2025-26 Focuses on:
- Boosting MSMEs, Startups & Exports.
- Strengthening Infrastructure & Investments.
- Supporting Farmers & Rural Economy.
- Tax Relief for Middle-Class & Business-Friendly Reforms.
- Encouraging Clean Energy & Digital Innovation.