Union Budget 2025: A Roadmap for Inclusive Growth
The Union Budget, presented by Finance Minister Nirmala Sitharaman, for 2025-26 has been welcomed for inclusive specific growth conjoined with sustainable environmental development. With the motto of “Sabka Vikas,” it has opened a space for all regions in this country to develop evenly, strengthening “Viksit Bharat”.
Budget 2025 is a budget that looks to the future. It conveys the essence of inclusive development in all sectors. Agriculture, MSMEs, and infrastructure form the backbone for economic growthperusal an emphasis on education, health care, and women’s participation as the precondition of social equity.
New Horizon of Taxation
The Union Budget 2025, presented by Finance Minister Nirmala Sitharama,n has incorporated significant alterations to income taxation to make compliance simple and provide relief to taxpayers. Here are some major changes:
1. Revised Income Tax Slabs
The income tax slabs have been revamped by the government in the new tax regime from FY 2025-26. The latest slabs are as follows: Up to ₹4,00,000: NIL ₹4,00,001 to ₹8,00,000: 5% ₹8,00,001 to ₹12,00,000: 10% ₹12,00,001 to ₹16,00,000: 15% ₹16,00,001 to ₹20,00,000: 20% ₹20,00,001 to ₹24,00,000: 25% Above ₹24,00,000: 30% In this restructuring, the basic exemption limit is increased from ₹3 lakh to ₹4 lakh and is thus relief for the lower section of the earners.
2. Rebate Under Section 87A Increased
The rebate under Section 87A has been raised from ₹25,000 to ₹60,000 in favour of middle-class taxpayers. An individual earning up to ₹12 lakh under the new tax regime will not have any tax liability.
3. Senior Citizen Relief
The TDS (Tax Deducted at Source) exemption limit has been raised to ₹1 lakh on income earned through interest for senior citizens. The aim is to ease the tax for the retirees.
4. More Time to File Revised Returns
Taxpayers have now been given a time frame of up to 48 months (4 years) to file an updated Income Tax Return (ITR-U) as opposed to the previous limit of 12 months. This extension thus allows taxpayers more flexibility in correcting or updating returns.
5. Higher TCS Limit on Foreign Transactions
The Tax Collected at Source (TCS) limit for foreign remittances has been raised from ₹7 lakh to ₹10 lakh-treating tax implications on investments abroad, travel payments, and educational expenses outside India.
6. Simplified Compliance with Digital Focus
The budget is essentially digitisation in terms of widening the access of tax authorities to electronic records-jurisdictional virtual assets like cryptocurrencies would thus have better monitoring and compliance.
7. One Step Towards Simplification
The Union Budget 2025 reflects the commitment of the government to simplifying taxation, not excluding it from the rest of the budget’s themes. Tax simplification is achieved through changes in the slabs of taxes, improvement of rebates, and relaxation of compliance periods by making taxation clearer and taxpayer-centric.
Author:
Shreya Tomar
Assistant professor
Department of Commerce (VISMT)