Top Highlights of Budget 2025-26:
• No Income Tax Payable Up to ₹12 Lakh – Under the new income tax regime, individuals earning up to ₹12 lakh will not have to pay income tax.
• New Tax Slabs Introduced
₹0-4 lakh: Nil
₹4-8 lakh: 5%
₹8-12 lakh: 10%
₹12-16 lakh: 15%
₹16-20 lakh: 20%
₹20-24 lakh: 25%
₹24 lakh onwards: 30%
• Two Self-Occupied Properties Can Be Valued at Nil – Instead of just one, taxpayers can now claim Nil valuation on two self-occupied properties.
• Time Limit to File Updated Tax Returns Extended – The deadline for filing updated tax returns has been extended from 2 years to 4 years.
• TDS & TCS Rationalisation with a Focus on the Middle Class
• The number of TDS and TCS rates has been reduced, and thresholds adjusted.
• The TCS threshold limit on LRS remittances has been raised from ₹7 lakh to ₹10 lakh.
• The TDS threshold limit on rent has been increased to ₹6 lakh.
• TCS on education loans up to ₹10 lakh from specified financial institutions has been removed.
• Customs Provisional Assessment Time Limit Set at 2 Years – Customs assessments will now have a maximum processing period of 2 years.
• Basic Customs Duty Adjustments
• Exemptions granted for 36 life-saving drugs, 35 capital goods for EV manufacturing, and wet blue leather.
• Duty on flat panel displays increased from 10% to 20%.
• Duty on fish paste reduced from 30% to 5%.
• Government to Remove 7 Additional Tariff Rates – After this removal, only 8 tariff rates will remain.
• Fiscal Deficit Targets
FY25: 4.8%
FY26: 4.4%
• Boost to Oilseed & Pulse Production
• Kisan Credit Card loan limit increased from ₹3 lakh to ₹5 lakh.
• A six-year mission for self-reliance in pulses launched with direct procurement by NAFED and NCCF.
• Fiscal Deficit Control with Gradual Debt Reduction – The government aims for a steady decline in debt levels.
• Jan Vishwas 2.0 Bill – Over 100 provisions in existing laws to be decriminalised.
• Grameen Credit Score for Self-Help Groups – Banks will maintain a credit score for self-help groups to improve financial access.
• Bilateral Investment Treaty – A new model treaty to attract foreign investments.
• New Income Tax Bill Next Week – Will adopt a “trust first, scrutinize later” approach.
• Insurance FDI Increased from 74% to 100% – Applies to insurers investing their entire premium within India.
• Support for MSMEs in Tackling Non-Tariff Barriers in Exports – Bharat Trade Net to be set up for trade facilitation.
• Cargo Screening and Customs Clearance Simplified – More user-friendly procedures to be introduced.
• Deeptech Fund of Funds – To support tech research, with 10,000 fellowships at IITs & IISc under the PM Research Fellowship Scheme.
• PM Gati Shakti Data to Be Available for Private Sector – Also, the development of the top 50 tourist destinations in collaboration with state governments.
• Mudra Loans for Homestays – Financial support for homestay businesses.
• Medical Tourism & ‘Heal in India’ Initiative – To be promoted with private sector collaboration.
• Western Kosi Canal Project in Bihar – Financial assistance to be provided.
• Modified UDAN Scheme – 120 new destinations to be connected, targeting 4 crore passengers in 10 years.
• 100GW Nuclear Energy Target by 2047 – Includes a ₹20,000 crore nuclear energy mission for small modular reactors.
• Shipbuilding Financial Assistance Policy Revamped – Maritime Development Fund with ₹25,000 crore corpus.
• Urban Challenge Fund – ₹1 lakh crore fund to develop cities into growth hubs.
• Jal Jeevan Mission Extended – Enhanced outlay with focus on quality infrastructure.
• Public-Private Partnerships in Infrastructure – ₹1.5 lakh crore interest-free loans for states.
• Support for Gig Workers – PM Swanidhi Scheme revised, with ₹30,000 UPI-linked credit cards and identity card issuance for gig workers.
• Expansion of Medical Education – 10,000 new seats in medical colleges; 75,000 seats to be added over 5 years.
• 5 National Centres of Excellence for Skilling – To equip youth for global job markets.
• 50,000 Atal Tinkering Labs in Schools – Broadband connectivity for all secondary schools.
• Saksham Anganwadi & Poshan 2.0 – To support nutrition for 8 crore children, 1 crore mothers, and 20 lakh adolescent girls.
• Manufacturing Mission to Boost ‘Make in India’ – Supporting small, medium, and large industries.
• National Institute of Food Technology in Bihar – To promote entrepreneurship and increase farmer incomes.
• Sustainable Toys Initiative – New scheme to make India a global toy manufacturing hub.
• Scheme for Footwear & Leather Industry – Expected to create 22 lakh jobs and boost exports to ₹1.1 lakh crore.
• New SC/ST Women Loan Scheme – Five-year term loans for 5 lakh women.
• Fund of Funds (FoF) with ₹10,000 Crore Contribution – Expanded scope for startup funding.
• Credit Guarantee Cover for MSMEs – Increased from ₹5 crore to ₹10 crore, enabling ₹1.5 lakh crore additional credit in 5 years.
• India Post to Become a Leading Public Logistics Provider – Supported by 2.4 lakh dak sevaks.
• ‘Atmanirbharta Mission’ for Pulses – Six-year self-sufficiency plan for pulses like tur, urad, and masoor.
• Kisan Credit Card Expansion – Loan limit increased from ₹3 lakh to ₹5 lakh; new urea plant in Assam.
• Makhana Board in Bihar – To enhance processing and value addition for farmers.
• ‘Sabka Vikas’ Vision for the Next 5 Years – Focus on balanced growth, zero poverty, and economic empowerment.
• Dhan Dhanya Krishi Yojna – To benefit 1.7 crore farmers across 100 districts.
• Viksit Bharat Vision – Focus on poverty eradication, youth development, farmers, and women.
• Focus on Accelerated Growth – Government prioritizing rapid economic expansion.
• FM Nirmala Sitharaman’s 8th Consecutive Budget Presentation – Continued focus on reforms and growth.
Thanks to Karwa and Associates and CA Anshul Karwa for providing the above article, original link is https://karwaandassociates.com/highlights-of-union-budget-2025-26/
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