Budget 2025: The Most Important Points you must know

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, has introduced several significant changes impacting various sectors and individuals. Here's a detailed look at the key highlights:

1. Income Tax Relief:

No income tax for income up to ₹12 lakh under the new tax regime: In a significant move aimed at providing relief to taxpayers, the government has raised the income tax exemption limit under the new tax regime to ₹12 lakh. This means individuals earning up to ₹12 lakh annually will not have to pay any income tax if they opt for the new regime. This measure is expected to benefit a large section of the population and boost disposable income. It aims to make the new tax regime more attractive and potentially simplify the tax filing process for many.

New Income Tax Bill to be introduced: The Finance Minister announced the government's intention to introduce a new Income Tax Bill. While details are yet to be released, this suggests potential further reforms and revisions to the existing income tax structure. This could include changes to tax slabs, deductions, exemptions, or the overall framework of income tax calculation. The specifics will be eagerly awaited by taxpayers and experts alike.

2. Boost to Startups:

Additional funds for startups: Recognizing the vital role of startups in driving innovation and economic growth, the government has allocated an additional ₹10,000 crore to support the startup ecosystem. This builds upon the existing ₹10,000 crore contribution, effectively doubling the government's commitment to fostering entrepreneurship. These funds are likely to be used for various initiatives such as seed funding, incubation programs, tax benefits, and mentorship opportunities, all aimed at helping startups thrive and scale their businesses.

3. Healthcare:

Increased medical seats: Addressing the growing demand for healthcare professionals and aiming to improve the healthcare infrastructure in the country, the government has announced the addition of 75,000 medical seats over the next 10 years. This significant increase in capacity will help train more doctors and medical personnel, improving access to healthcare services, particularly in underserved areas.

Exemption of customs duty on life-saving drugs: In a move aimed at making essential medicines more affordable, the government has granted full exemption from basic customs duty on 36 life-saving drugs and medicines. This will significantly reduce the cost of these critical medications, making them more accessible to patients and easing the financial burden on families.

4. Infrastructure Development:

Greenfield airports in Bihar: To improve connectivity and boost economic activity in the state of Bihar, the government has announced the development of new greenfield airports. These new airports will not only facilitate easier travel and trade but also create employment opportunities and stimulate growth in related sectors. This investment in infrastructure is expected to have a positive ripple effect on the overall development of the region.

5. MSME Support:

Enhanced credit cover for MSMEs: Recognizing the crucial role of Micro, Small, and Medium Enterprises (MSMEs) in the economy, the government has increased the credit cover for MSMEs to ₹10 crore. This enhanced credit cover will make it easier for small businesses to access the funding they need to grow and expand their operations. Improved access to credit is a vital factor in enabling MSMEs to create jobs, innovate, and contribute to economic growth.

6. Other Key Announcements:

National institute of food tech in Bihar: To support entrepreneurship and development in the food processing sector, the government has announced the establishment of a new national institute of food technology in Bihar. This institute will play a key role in research, training, and innovation in food processing, helping to improve food quality, reduce waste, and create new opportunities in the sector. This initiative is expected to benefit farmers, food processors, and consumers alike.

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