The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, introduces significant reforms aimed at stimulating economic growth, enhancing education and healthcare infrastructure, and providing substantial tax relief to various segments of society, including students, employees, entrepreneurs, and investors.
Key Initiatives Impacting Students, Employees, Entrepreneurs, and Investors
- Atal Tinkering Labs: The government continues its commitment to fostering innovation among students by expanding the Atal Tinkering Labs initiative. This program aims to nurture creativity and scientific temper in young minds, equipping them with the necessary tools and mentorship to develop innovative solutions.
- Broadband Connectivity to Government Secondary Schools and Primary Health Centers (PHCs): Recognizing the importance of digital access, the budget allocates funds to provide high-speed broadband connectivity to government secondary schools and PHCs. This initiative is expected to enhance educational resources for students and improve healthcare delivery in rural areas.
- Bharat Bhasha Pustak Scheme: To promote regional languages and literature, the Bharat Bhasha Pustak Scheme has been introduced. This scheme will support the publication and distribution of books in various Indian languages, enriching the cultural fabric and providing students with diverse learning materials.
- Centers of Excellence in AI for Education: The budget proposes the establishment of Centers of Excellence in Artificial Intelligence specifically focused on the education sector. These centers will develop AI-based solutions to personalize learning, enhance educational content, and improve administrative processes in educational institutions.
- Expansion of Medical Education: Addressing the need for more healthcare professionals, the government plans to establish new medical colleges and increase the number of seats in existing institutions. This expansion aims to improve the doctor-to-patient ratio and enhance healthcare services across the country.
- PM Research Fellowship: The Prime Minister's Research Fellowship program receives a boost with increased funding and expanded eligibility criteria. This initiative encourages bright students to pursue doctoral studies in cutting-edge research areas, contributing to the nation's innovation and development.
- Benefits for MSMEs: Micro, Small, and Medium Enterprises (MSMEs) are set to receive enhanced support through easier access to credit, tax incentives, and simplified compliance procedures. These measures aim to bolster the growth of MSMEs, which are crucial for employment generation and economic development.
- Credit Card for Micro Enterprises: A new scheme introduces credit cards tailored for micro enterprises, providing them with flexible credit facilities to manage working capital and expand their operations. This initiative is expected to empower small business owners and promote entrepreneurship.
- Fund of Funds for Startups: To stimulate the startup ecosystem, the government has allocated additional resources to the Fund of Funds for Startups. This fund will provide venture capital support to innovative startups, facilitating their growth and contribution to the economy.
Major Changes in Income Tax, TDS, and TCS
The budget introduces significant changes to the income tax structure, aiming to increase disposable income and stimulate consumption.
New Income Tax Slabs for FY 2025-26
| Income Range (₹) | Tax Rate (%) |
|---|---|
| Up to 4,00,000 | Nil |
| 4,00,001 to 8,00,000 | 5 |
| 8,00,001 to 12,00,000 | 10 |
| 12,00,001 to 16,00,000 | 15 |
| 16,00,001 to 20,00,000 | 20 |
| 20,00,001 to 24,00,000 | 25 |
| Above 24,00,000 | 30 |
Tax Payable Comparison for Different Income Levels
| Annual Income (₹) | Tax Payable FY 2024-25 (₹) | Tax Payable FY 2025-26 (₹) | Savings (₹) |
|---|---|---|---|
| 6,00,000 | 0* | 0* | *As rebate available till 7L and 12L Respectively |
| 12,00,000 | 80,000 | 0* | *Rebate available till 12L |
| 18,00,000 | 2,30,000 | 1,60,000 | Benefit of 70,000 |
| 25,00,000 | 4,40,000 | 3,30,000 | Benefit of 1,10,000 |
Note: Calculations are approximate and based on the new tax slabs.
Conclusion
The Union Budget 2025 presents a forward-looking approach, focusing on tax reforms, infrastructure development, and support for education and entrepreneurship. The revised income tax slabs are poised to increase disposable income, thereby boosting consumption and economic growth. Initiatives targeting students, employees, entrepreneurs, and investors reflect the government's commitment to inclusive development and fostering innovation across sectors.
For a comprehensive overview of the budget highlights, you may watch the following video:
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