Key Takeaways from the Budget 2025

Understanding India’s Budget 2025: Key Changes That Matter

The latest Union Budget brings significant changes across taxation, MSMEs, healthcare, and industrial development. Let’s break down the most important updates and what they mean for different sectors of the economy.

Tax Relief and Compliance Updates

In a move to benefit senior citizens, the TDS exemption limit on fixed deposit interest has been raised to ₹1 lakh. The new tax regime now offers a higher nil tax slab of ₹12 lakh (excluding capital gains), providing substantial relief to taxpayers. Property owners will appreciate that there’s no notional rent charged on up to two self-occupied properties.

For better tax compliance, higher TDS rates will apply to those without PAN cards. Additionally, taxpayers now have an extended window of up to 4 years to file updated income tax returns.

MSME and Startup Revolution

The budget shows strong support for India’s 5.7 crore MSMEs with several game-changing initiatives:

• Enhanced credit guarantees up to ₹5 crores for MSMEs
• Startup credit guarantee limit doubled to ₹20 crores
• Special credit cards for Udyam-registered MSMEs
• A new ₹10,000 crore fund of funds for startups
• Minimal 1% guarantee fee on loans for startups in 27 key sectors

Industrial Growth Focus

The government has outlined ambitious plans for specific sectors:

• Development of India as a global toy manufacturing hub through cluster development
• Comprehensive scheme for the footwear and leather sector targeting:
  • Creation of 22 lakh jobs
  • ₹4 lakh crore investment attraction
  • Export target of ₹1.1 lakh crore

Healthcare Infrastructure Boost

In a significant move toward improving healthcare accessibility, the government has announced plans to establish cancer daycare centers across all districts over the next three years. This initiative aims to:

• Increase accessibility to cancer treatment
• Create healthy competition with private hospitals
• Maintain specialized tertiary care at larger hospitals

Other Notable Changes

• NPS Vatsalya contributions now eligible for deduction under Section 80CCD
• TDS applicable on rent payments exceeding ₹6 lakh annually
• Removal of TCS on foreign remittances up to ₹10 lakh and education loans
• Extension of startup incorporation period to 5 years

Conclusion

Budget 2025 demonstrates a clear focus on empowering MSMEs, improving healthcare infrastructure, and providing tax relief to citizens. The various initiatives and reforms indicate the government’s commitment to fostering economic growth while ensuring social welfare.

These changes are set to create a more conducive environment for businesses, particularly MSMEs and startups, while also addressing crucial areas like healthcare accessibility and industrial development. The tax reforms should provide relief to various sections of society while encouraging better compliance.