Union Budget 2025 Key Announcements

12:12 PM: No income tax payable up to 12L

12:05 PM:

Elimination of TCS

Propose eliminating TCS on remittances for educational purposes if a loan from a designated financial institution funds the remittance. Exclude TCS on transactions related to the sale of goods to ease compliance difficulties.

12:03 PM:

TDS Announcements

Simplifying the Tax Deduction at Source (TDS) process by lowering the rates and increasing the thresholds for TDS deductions. - Raising the threshold amounts to provide better clarity and uniformity. - Doubling the tax deduction limit on interest for senior citizens from ₹50,000 to ₹1,00,000. - Increasing the annual limit for TDS on rent from ₹2.40 lakh to ₹6 lakh, which will benefit small taxpayers receiving lower payments. - Raising the threshold for collecting Tax Collected at Source (TCS) on remittances under the RBI's Liberalised Remittance Scheme (LRS) from ₹7 lakh to ₹10 lakh.

12:01 PM:

Easing Tax Language

The new income tax bill is crafted to be clear and straightforward, ensuring simplicity and ease of understanding for taxpayers and tax administrators. Its direct language seeks to eliminate confusion, making it more accessible and user-friendly for everyone involved.

These proposals aim to reform personal income taxation, with a special focus on the middle class, rationalize TDS and TCS to ease difficulties and foster employment and investment.

11:57 AM:

Exemption of Cancer Drugs from Customs Duties

To support cancer patients, individuals with rare diseases, and those suffering from chronic conditions, the government will add 36 life-saving drugs to the list of medications that are fully exempt from essential customs duties. Additionally, six life-saving medications will be eligible for a concessional customs duty rate of 5%. Both the full exemption and the concessional duty will also apply to bulk drugs used in the manufacturing of these medicines.

Patient assistance programs run by pharmaceutical companies will be fully exempt from Basic Customs Duty (BCD), provided the medicines are supplied free of cost to the patients. Additionally, the exemption list will include 37 new drugs and 13 new patient assistance programs.

11:55 AM:

Streamlining Customs Tariff

The government seeks to simplify and streamline the customs tariff structure to address duty inversion and encourage domestic manufacturing, value addition, and exports. This rationalization is part of a comprehensive review of the customs rate structure announced in the July 2024 Budget.

11:53 AM:

Bringing Down Central Government Debt

Finance Minister Nirmala Sitharaman announced that the government aims to keep the fiscal deficit each year in order to ensure that central government debt decreases as a percentage of GDP. The roadmap for the next six years has been detailed in the FRBM statement. For the fiscal year 2024-25, the revised estimate for total receipts (excluding borrowings) is ₹31.47 lakh crore, with net tax receipts projected at ₹25.57 lakh crore. The revised estimate for total expenditure is ₹47.16 lakh crore, which includes a capital expenditure of ₹10.1 lakh crore. The fiscal deficit for the year is projected at 4.8% of GDP.

11:51 AM:

New Index to be Introduced for Promoting Competitive Federalism

Finance Minister Nirmala Sitharaman announced the launch of an Investment Friendliness Index for states in 2025, aiming to promote competitive cooperative federalism. Under the Financial Stability and Development Council (FSDC), a mechanism will be established to evaluate the impact of existing financial regulations and subsidiary instructions. This initiative is designed to enhance the responsiveness and growth of the financial sector. She also highlighted the Jan Vishwas Act 2023, which decriminalized over 1,080 legal provisions, creating a more business-friendly regulatory environment.

11:47 AM:

Establishment of GCCs in Tier-II Cities

Finance Minister Nirmala Sitharaman emphasized the government's commitment to strengthening the domestic electronic equipment industry and creating opportunities for young people. A national framework will be established to assist states in promoting Global Capability Centers (GCCs) in emerging Tier-2 cities. This framework will focus on talent availability, infrastructure improvements, bylaw reforms, and collaboration with industry.

In addition, the government will enhance infrastructure and warehousing for air cargo, especially for high-value perishable horticultural products. Cargo screening and customs protocols will be streamlined to improve efficiency. Sitharaman also underscored that reforms have guided the government’s policies over the past decade.

11:44 AM:

Tax Reforms to be Introduced Later

Finance Minister Nirmala Sitharaman highlighted the government's efforts over the past decade to implement tax reforms to enhance taxpayer convenience. Key measures include faceless assessments, the introduction of a taxpayer charter, and quicker processing of returns, with nearly 99% of returns now based on self-assessment. She reaffirmed the tax department's approach of "trust first, scrutinize later," emphasizing the ongoing commitment to simplifying compliance. In addition, she announced that a new income tax bill will be introduced next week, which will further advance the government's reform agenda.

11:42 AM:

Nuclear Energy Future of Clean Energy

The Finance Minister announced a Nuclear Energy Mission aimed at advancing India's transition to clean energy. The goal is to develop at least 100 GW of nuclear power by 2047. To encourage greater private sector participation, amendments will be introduced to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. Furthermore, a dedicated research and development initiative for Small Modular Reactors (SMRs) will be launched with an investment of ₹20,000 crore. As part of this mission, at least five indigenously developed SMRs are expected to become operational by 2033.  

11:40 AM:

Strengthening Power Sector

The Finance Minister highlighted key power sector reforms to strengthen electricity distribution and transmission. The government will incentivize states to undertake these reforms and enhance intrastate transmission capacity. These measures will improve the financial health and operational efficiency of power companies. An additional borrowing allowance of 0.5% of GSDP will be granted to support states in implementing these reforms, contingent on their progress in this sector.

11:39 AM:

Transforming Cities into Growth Hubs

The Finance Minister announced the establishment of a ₹1 lakh crore Urban Challenge Fund to transform cities into growth hubs, support creative redevelopment, and enhance water and sanitation infrastructure, as outlined in the July Budget. This fund will finance up to 25% of the cost of bankable projects, requiring at least 50% of the funding to come from bonds, bank loans, or public-private partnerships (PPPs). An initial allocation of ₹10,000 crore has been proposed for the fiscal year 2025-26 to kickstart the initiative.

11:35 AM:

Enhanced Cancer Care

The Finance Minister announced the establishment of daycare cancer centers in all district hospitals over the next three years to enhance cancer care accessibility. In FY 2025-26 alone, 200 centers will be set up. Additionally, the government is committed to strengthening urban livelihoods, focusing on supporting the urban poor and vulnerable groups through various initiatives to provide economic stability and employment opportunities.

11:33 AM:

Addition of 10,000 Medical Seats

The FM highlighted the government's focus on expanding medical education, noting that over the past 10 years, nearly 1.1 lakh undergraduate and postgraduate medical seats have been added—an increase of 130%. To further strengthen healthcare infrastructure, 10,000 additional seats will be introduced in medical colleges and hospitals in the coming year as part of a broader plan to add 75,000 seats over the next five years.

11:29 AM:

Establishing 50,000 Government Schools

Atal Tinkering Labs will be established in 50,000 government schools over the next five years to encourage curiosity, innovation, and scientific temper among students. Broadband connectivity will also be extended to all government secondary and primary schools to ensure better access to digital learning resources.

11:28 AM:

Nutritional Support for Children

The Finance Minister highlighted investment as the third engine of growth, which includes investing in people, the economy, and innovation. In terms of investing in people, the government is focusing on the Sashakt Anganwadi and Poshan 2.0 programs. These initiatives provide nutritional support to over 80 million children, pregnant women, lactating mothers, and approximately 2 million adolescent girls in aspirational districts and the Northeast region. The cost norms for these programs will be increased.

11:26 AM:

Enhancing the Value of Farmers' Produce,

The Finance Minister highlighted the government's commitment to supporting food processing as part of its focus on empowering the poor. A National Institute of Food Technology, Entrepreneurship, and Management will be established in Bihar to boost food processing activities across the eastern region. This initiative will have two key outcomes: first, it will enhance farmers' incomes by adding value to their produce, and second, it will create skilling, entrepreneurship, and employment opportunities for the youth in the region.

11:24 AM:

Creation of Toy Hub

The FM announced that the government will implement specific policy and facilitation measures to boost India's footwear and leather sector's productivity, quality, and competitiveness. A focused products scheme will be introduced to support design capacity, component manufacturing, and machinery required for producing non-leather quality footwear, in addition to supporting leather footwear and products. This scheme is expected to create employment for 22 lakh people, generate over ₹400 crore, and achieve exports of over ₹1.1 lakh crore. In addition, measures will be introduced for the toy sector, building on the National Action Plan for Toys. A new scheme will establish India as a global toy hub, focusing on developing clusters, skills, and a manufacturing ecosystem that will produce high-quality, innovative, and sustainable toys, representing the "Made in India" brand.

11:22 AM:

MSME Scaling

To boost their growth and efficiency, the government will increase MSMEs' investment and turnover limits by 2.5 times and 2 times, respectively. This move is expected to empower MSMEs to scale up, innovate, and generate more employment opportunities for the youth.

11:20 AM:

Makhana Board Establishment in Bihar

The Finance Minister highlighted the establishment of a Makhana Board in Bihar, calling it a special opportunity for the people of the state. The board aims to enhance Makhana's production, processing, value addition, and marketing, offering significant growth potential for this traditional crop and boosting Bihar’s agricultural economy.

11:16 AM:

Credit Facilities for Farmers

The Finance Minister announced that Kisan Credit Cards (KCC) will continue facilitating short-term loans for 7.7 crore farmers, fishermen, and dairy farmers. Additionally, the loan limit under the modified interest subvention scheme will be increased from ₹3,000 to ₹5,000 for loans taken through the KCC, providing greater financial support for agricultural production.

11:15 AM:

Road to Healthier India

The FM highlighted a comprehensive program for vegetables and fruits, acknowledging the growing awareness among the population about their nutritional needs. This shift reflects a healthier society, with rising income levels leading to an increase in the consumption of vegetables, fruits, and other nutritious foods. The government aims to support this trend with targeted initiatives to further promote the availability and accessibility of these essential food items, ensuring that the benefits of improved nutrition reach a wider segment of the population.

11:11 AM:

Agricultural Self-Reliance

The Finance Minister announced that the government will launch a 6-year mission to achieve self-reliance in pulses, focusing on tur and masoor. Central agencies such as NAFED and NCCF will be prepared to procure these three pulses from farmers who register with the agencies and enter into agreements. This initiative will run over the next four years, ensuring support and guaranteed procurement for farmers.

11:09 AM:

Boosting Crop Yield Via Agricultural District Program

The Finance Minister outlined specific proposals, starting with agriculture as a key focus. Under Prime Minister Krishi Yojana, a new initiative inspired by the success of the Aspirational District Programme, the government will launch an agricultural district program in partnership with states. This will target 100 districts with low productivity, moderate crop intensity, and below-average credit parameters.

The program aims to boost agricultural productivity through crop diversification, sustainable farming practices, enhanced post-harvest storage at the Panchayat and block levels, improved irrigation facilities and facilitated access to both long-term and short-term credit. This initiative is expected to benefit 1.7 crore farmers.

11:06 AM: 

Budget 2025 targets six key pillars for growth & sustainability 

The six key domains covered in the Union Budget include taxation, power, urban development, mining, the financial sector, and regulatory reforms. These areas are central to the government's focus on driving growth, improving infrastructure, enhancing governance, and ensuring sustainable development across various sectors.

11:01 AM:

FM Nirmala Sitharaman unveils a people-centric budget

Finance Minister Nirmala Sitharaman Declares the Commencement of the Budget. She highlights that it is a budget focused on fulfilling the aspirations of the poor, farmers, women, and youth, representing the core values of GYAN (Garib, Yuva, Annadata, and Nari Shakti).

9:58 AM - Union Finance Minister Nirmala Sitharaman arrives at Parliament after meeting President Droupadi Murmu at Rashtrapati Bhavan. She will soon present the Union Budget in the House.