Budget 2025 Highlights: Key Tax Reforms, MSME Boost & Investment Plans

The Budget 2025 has introduced significant changes in income tax, GST, customs, and business incentives aimed at economic growth, investment, and tax relief. Here’s everything you need to know about the latest budget updates.

1. Income Tax Changes: New Tax Slabs & Benefits

The new tax regime offers relief for middle-class taxpayers:

✅ No tax on income up to ₹12 lakh (excluding capital gains)

✅ Revised income tax slabs:

Up to ₹4,00,000 – No Tax
₹4,00,001 – ₹8,00,000 – 5%
₹8,00,001 – ₹12,00,000 – 10%
₹12,00,001 – ₹16,00,000 – 15%
₹16,00,001 – ₹20,00,000 – 20%
₹20,00,001 – ₹24,00,000 – 25%
Above ₹24,00,000 – 30%

Other key changes:

Updated tax returns filing period extended from 2 to 4 years
Presumptive taxation for non-resident service providers
Two self-occupied properties allowed for tax benefits

2. TDS & TCS Updates

TCS on specific goods removed from April 2025
Higher TDS/TCS rates for non-filers removed
Increased TDS limits for rent, commissions, and professional fees

3. Indirect Tax Reforms: GST & Customs

🚀 GST Changes:

Track & Trace Mechanism for better compliance
Lower pre-deposit for penalty-related appeals
Retrospective amendment in SEZ & Free Trade Warehousing Zone supplies

📦 Customs Updates:

Exemptions for 36 life-saving drugs
Lower cess on specific items
Simplified tariff rates for industrial goods

4. MSME & Start-up Benefits

Credit cards for micro-enterprises
Fund of Funds for start-ups
Extended tax benefits for registered start-ups (up to 10 years)

5. Boost to Investments & Exports

💡 Key announcements:

National framework for Global Capability Centres in Tier-2 cities
‘BharatTradeNet’ digital infrastructure for international trade
Export Promotion Mission & global supply chain integration

6. Agriculture & Infrastructure

🌱 Agriculture Reforms:

PM Dhan-Dhaanya Krishi Yojana
Makhana Board in Bihar
Self-sufficiency in pulses production

🏗 Infrastructure Development:

100 GW nuclear energy capacity target by 2047
Greenfield Airport in Bihar
AI Centre of Excellence for education

Conclusion

The Budget 2025 focuses on tax relief, economic growth, ease of business, and digital transformation. With significant tax benefits, customs reforms, and MSME incentives, it’s a step towards making India a global investment hub.

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