New Delhi, India – On February 1, 2025, Finance Minister Nirmala Sitharaman presented India’s Union Budget for the fiscal year 2025-2026, introducing significant tax reforms and initiatives aimed at bolstering the agricultural sector.
Key Highlights:
Tax Reforms:
- Income Tax Relief: The budget proposes a complete tax exemption for individuals earning up to ₹12 lakh annually, with a standard deduction of ₹75,000. This means that individuals with an income up to ₹12.75 lakh will not be liable to pay any income tax.
- Revised Tax Slabs: For incomes exceeding ₹12.75 lakh, the new tax regime introduces updated slabs:
- ₹4 lakh to ₹8 lakh: 5%
- ₹8 lakh to ₹12 lakh: 10%
- ₹12 lakh to ₹16 lakh: 15%
- ₹16 lakh to ₹20 lakh: 20%
- ₹20 lakh to ₹24 lakh: 25%
- Above ₹24 lakh: 30%
Agricultural Initiatives:
- Mission for Self-Reliance in Pulses: A six-year program focusing on increasing the production of pulses such as Tur, Urad, and Masoor has been launched to reduce dependence on imports and ensure fair prices for farmers.
- Enhanced Credit for Farmers: The Kisan Credit Card (KCC) loan limit has been raised from ₹3 lakh to ₹5 lakh, facilitating greater access to short-term loans for farmers, fishermen, and dairy farmers.
Additional Measures:
- Support for Gig Workers: Gig workers will now be provided healthcare benefits under the PM Jan Arogya Yojana. The government also plans to issue identity cards and register these workers on the e-Shram portal to ensure better access to welfare schemes.
- Promotion of Research and Innovation: An allocation of ₹20,000 crore has been made to implement a private sector-driven Research, Development, and Innovation initiative, aiming to foster technological advancements and support startups. (indiabudget.gov.in)
The 2025 budget reflects the government’s commitment to economic growth through tax reliefs and substantial investments in agriculture and innovation. These measures are anticipated to enhance the standard of living for citizens and strengthen India’s position in the global economy.