Budget 2025: 10 Key Announcements By FM Nirmala Sitharaman For The Common Man

Last Updated:February 01, 2025, 17:12 IST

In a big relief to the middle class, Finance Minister Nirmala Sitharaman exempted annual income of up to Rs 12 lakh from income tax and rejigged tax slabs

Key Announcements Union Budget 2025: On Saturday, February 1, 2025, Union Finance Minister Nirmala Sitharaman presented her eighth budget, which included a series of significant announcements for India’s middle class. One of the most talked-about developments was the proposal to exempt income tax for those earning up to ₹12 lakh under the new tax regime.

The Finance Bill will be presented next week, according to the Finance Minister.

The first part of Parliament’s Budget session started on January 31 and will conclude on February 13, 2025. The second part will begin on March 10 and end on April 4, 2025.

Here are 10 key announcements from Budget 2025 for the common man:

1. FM Nirmala Sitharaman exempted annual income of up to Rs 12 lakh from income tax and rejigged tax slabs.The revised slabs for FY26 are as follows:Income up to Rs 4,00,000: Nil

   Income from Rs 4,00,001 to Rs 8,00,000: 5%

   Income from Rs 8,00,001 to Rs 12,00,000: 10%

   Income from Rs 12,00,001 to Rs 16,00,000: 15%

   Income from Rs 16,00,001 to Rs 20,00,000: 20%

   Income from Rs 20,00,000 to Rs 24,00,000: 25%

   Income above Rs 24,00,000: 30%.

2. The government will forgo Rs 1 lakh crore in direct taxes and Rs 2,600 crore in direct taxes due to tax rate changes.
3. Individuals with an annual income of Rs 25 lakh will benefit from Rs 1,10,000 in tax savings, while those earning Rs 18 lakh will save Rs 70,000.
4. 28 additional goods required for mobile phone battery production will be added to the list of exempted capital goods.
5. The government will extend the period for startups to incorporate and avail of tax benefits by 5 years.
6. Gig workers will be registered on the e-Shram portal and provided identity cards, along with healthcare under the PM Jan Arogya Yojana, benefiting around 1 crore gig workers.
7. The SWAMIH scheme has completed 50,000 dwelling units in stressed housing projects, with another 40,000 units expected in 2025. To build on this, the SWAMIH Fund 2 will be set up with Rs 15,000 crore to complete an additional 1 lakh units, assisting middle-class families struggling with EMIs and rent.
8. Tax Collected at Source (TCS) has been removed for education loans up to Rs 10 lakh from specified financial institutions.
9. The annual TDS limit for rent payments has been raised to Rs 6 lakh from Rs 2.4 lakh.
10. The tax deduction limit for senior citizens has been doubled to Rs 1 lakh.