The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, introduces significant changes in the new tax regime 2025, aiming to stimulate economic growth and provide relief to taxpayers. The budget 2025 highlights include adjustments to income tax slabs, modifications in customs duties affecting various goods, and initiatives to boost key sectors of the economy.

Revised Income Tax Slabs for AY 2025-26

One of the most anticipated aspects of the budget 2025 live announcement is the restructuring of the income tax slab. The government has revised the new income tax slab to reduce the tax burden on the middle class and encourage consumption. The updated tax slab 2025 is as follows:

• Income up to ₹5,00,000: No tax
• ₹5,00,001 to ₹7,50,000: 10%
• ₹7,50,001 to ₹10,00,000: 15%
• ₹10,00,001 to ₹12,50,000: 20%
• ₹12,50,001 to ₹15,00,000: 25%
• Above ₹15,00,000: 30%

These changes in the new tax regime slabs are designed to increase disposable income, thereby boosting savings and spending. Taxpayers can utilize the income tax calculator to assess their liabilities under the new structure.

Comparing New and Old Tax Regimes

The government continues to offer both the new tax regime and the old tax regime, allowing taxpayers to choose based on their financial situations. The old tax regime slabs remain unchanged, but the new tax regime 2025 offers lower tax rates with limited exemptions. Taxpayers should evaluate both regimes, possibly using a new tax regime calculator, to determine which is more beneficial.

Impact on Goods: What’s Costlier and What’s Cheaper

The budget 2025 highlights also encompass changes in customs duties, affecting the prices of various goods:

Becoming Cheaper:

• Mobile Phones and Chargers: The basic customs duty has been reduced to 15%, making these devices more affordable.
• Cancer Treatment Drugs: Three additional cancer drugs have been exempted from customs duties, reducing treatment costs.
• Gold and Silver: Customs duties have been reduced to 6%, lowering the cost of these precious metals.
• Seafood: Basic customs duty on certain brood stocks, shrimps, and fish feed has been reduced to 5%, benefiting the seafood industry.

Source: https://www.newindianexpress.com/nation/2024/Jul/23/budget-what-has-got-cheaper-what-is-costlier

Becoming Costlier:

• Telecom Equipment: The basic customs duty on specified telecom equipment has been increased to 15% from 10%, potentially raising costs in the telecom sector.
• Ammonium Nitrate: Customs duty has been raised to 10%, affecting industries that utilize this chemical.
• Non-Biodegradable Plastics: Customs duty has been increased to 10% to discourage the use of environmentally harmful materials.

Source: https://www.business-standard.com/budget/news/union-budget-24-what-s-cheaper-and-what-s-costlier-check-full-list-124072300608_1.html

Agricultural Initiatives

The budget 2025 places a strong emphasis on agriculture, introducing long-term programs to boost the production of pulses and cotton. A six-year program aims to enhance the output of pulse crops and cotton, focusing on reducing reliance on imports. State agencies will purchase pulses like pigeon peas, black matpe, and red lentils at guaranteed prices to support farmers. Additionally, the government aims to increase cotton production through research and development initiatives.

Source: reuters.com

Economic Growth and Fiscal Deficit

The government forecasts GDP growth of 6.3% to 6.8% for the coming fiscal year, aiming to stimulate economic growth through tax cuts and business-friendly measures. The budget also focuses on reducing the fiscal deficit to 4.4% of GDP, addressing concerns about economic stability.

Source: apnews.com

Conclusion

The Union Budget 2025 introduces significant changes in the new tax regime 2025, with revised income tax slabs aimed at providing relief to taxpayers and stimulating economic growth. The adjustments in customs duties will make certain goods cheaper, while others may become costlier. The emphasis on agricultural initiatives and measures to boost key sectors reflects the government’s commitment to balanced economic development.

The official URL for India’s Union Budget 2025 is:

https://www.indiabudget.gov.in

This website provides comprehensive details on the budget, including key highlights, documents, and related information.

For a visual overview of the budget allocations and priorities, you might find the following video informative: