Nirmala Sitharaman bets on income tax breaks to spur growth

Nirmala Sitharaman bets on income tax breaks to spur growth

Finance Minister Nirmala Sitharaman on Saturday unveiled a major relief measure for the middle class in the Union Budget 2025, announcing that individuals earning up to ₹12 lakh annually will now be exempt from paying income tax under the revised new tax regime. She also confirmed that a new and simplified income tax bill is set to be tabled in Parliament next week, aimed at streamlining the taxation system and boosting disposable income to spur economic growth.

Following her budget presentation, Prime Minister Narendra Modi lauded the Union Budget 2025, describing it as a “Force Multiplier” for India’s growth and a “budget of aspirations” designed to empower 140 crore Indians. He emphasized that the budget would boost savings, investments, consumption, and overall economic momentum.

Economists also welcomed the announcement, calling it the “need of the hour” and praising the “fiscal precision and balance” reflected in the budget numbers.

Highlights from Union Budget 2025

1. Major Income Tax Relief:
In a landmark move, Finance Minister Nirmala Sitharaman declared that individuals earning up to ₹12 lakh annually will not be required to pay income tax under the revised new tax regime. Detailed tax slabs and provisions will be outlined in the new income tax bill, expected next week.

2. PM Modi’s Remarks:
Calling it a “people’s budget,” the Prime Minister said the focus was not on boosting government revenue, but on putting more disposable income in citizens’ hands to stimulate the economy.

3. MSME and Sectoral Support:
The Finance Minister announced new classification criteria for MSMEs and an upgraded ‘Udaan’ scheme to enhance regional air connectivity. Additional initiatives include targeted support for the footwear and leather industries and a plan to add 75,000 new medical seats over the next five years.

4. Push for Self-Reliance in Pulses:
A six-year national mission will be launched to achieve self-sufficiency in pulses such as tur, urad, and masoor. The initiative will focus on developing climate-resilient seed varieties and improving productivity.

5. Boost for First-Time Entrepreneurs:
A new financing program will offer term loans up to ₹2 crore to five lakh first-time entrepreneurs, particularly women, Scheduled Castes, and Scheduled Tribes, within the next five years.

6. Expansion of the ‘Udaan’ Scheme:
The revamped Udaan program aims to connect 120 new destinations and carry four crore passengers over the next decade. It will also promote the creation of helipads and small airports across Northeast India, hilly regions, and aspirational districts.

7. Greenfield Airports in Bihar:
To meet rising aviation demand, the government will develop new greenfield airports in Bihar, complementing the Patna airport expansion and the establishment of a brownfield airport at Bihta.

Highlights of Union Budget 2025

The Union Budget for FY 2025–26, presented by Finance Minister Nirmala Sitharaman, unveiled a series of major policy initiatives aimed at boosting growth and easing the financial burden on citizens. The most prominent measure was a substantial income tax relief, exempting individuals earning up to ₹12 lakh per year from taxation under the revised regime.

This reform is designed to offer meaningful relief to the middle class, stimulate consumer spending, and enhance disposable income, reinforcing the government’s focus on inclusive economic growth.

The Union Budget 2025–26, presented by Finance Minister Nirmala Sitharaman, focused on easing the tax burden, driving self-reliance, and strengthening key sectors to promote inclusive growth and sustainable development.

Income Tax Rebate:
In a major relief for the middle class, the Finance Minister announced that individuals earning up to ₹12 lakh annually will pay no income tax. Under the revised tax structure, income between ₹8 lakh and ₹12 lakh will be taxed at 10%, and income between ₹12 lakh and ₹16 lakh at 15%. However, an additional rebate ensures that those earning up to ₹12 lakh remain completely tax-free.

Self-Reliance in Pulses:
To advance India’s goal of “aatmanirbharta” (self-reliance) in pulses, the government unveiled a six-year national mission focusing on tur, urad, and masoor. The initiative aims to develop climate-resilient seeds, improve protein quality, and enhance domestic production to cut down on imports.

Support for First-Time Entrepreneurs:
A new scheme will extend term loans of up to ₹2 crore to five lakh first-time entrepreneurs, with special emphasis on women, Scheduled Castes, and Scheduled Tribes, over the next five years—fostering innovation and job creation.

Modified ‘Udaan’ Scheme:
The government will relaunch an enhanced ‘Udaan’ scheme to strengthen regional air connectivity, linking 120 new destinations and facilitating travel for 4 crore passengers over the next decade. The plan also includes the development of helipads and smaller airports in the Northeast, hilly regions, and aspirational districts.

Greenfield Airports in Bihar:
To meet Bihar’s future aviation demands, the government will develop new greenfield airports, alongside the expansion of Patna Airport and the upgradation of Bihta Airport into a brownfield facility.

Expansion of Medical Education:
Sitharaman announced the addition of 10,000 new medical seats in the coming year, as part of a larger target to create 75,000 new seats across India within the next five years—bolstering healthcare infrastructure and workforce capacity.

Tax Relief for Senior Citizens:
To support India’s elderly population, the tax deduction limit for senior citizens has been doubled from ₹50,000 to ₹1 lakh, offering additional financial relief.

TDS Threshold Raised:
The TDS limit on rent has been increased from ₹2.4 lakh to ₹6 lakh per annum, reducing compliance pressure and easing liquidity for taxpayers.

Support for MSMEs:
To encourage business growth and employment, the government will enhance the classification limits for Micro, Small, and Medium Enterprises—raising investment caps by 2.5 times and turnover limits by 2 times.

Tourism Development:
In partnership with states, the Centre will develop 50 top tourist destinations through a challenge-based model, designed to boost tourism, attract investment, and create new jobs.

Overall, Union Budget 2025–26 underscores the government’s commitment to inclusive growth, tax relief, and economic resilience, laying the foundation for stronger infrastructure, thriving entrepreneurship, and a more equitable economy.

 

References: 

Talk:Nirmala Sitharaman bets on income tax breaks to spur growth

People on can use this Wall page to post a public message for you, and you will be notified when they do.

user Page Content

does not have a user page with this exact title. In general, this page should be created and edited by User:Hafizjunaid06. To start a page called User:Hafizjunaid06, type in the box below. When you are done, preview the page to check for errors and then publish it.
does not have a user page with this exact title. In general, this page should be created and edited by User:Hafizjunaid06. To start a page called User:Hafizjunaid06, type in the box below. When you are done, preview the page to check for errors and then publish it.

View Source Page Content

Title User Name Date
Nirmala Sitharaman bets on income tax breaks to spur growth Amitrajput12 04 Feb 2025 04:17 AM

© 2026 Genzlife Foundation. All rights reserved.

logo logo logo