LIVE: ๐๐๐ฑ๐ด๐ฒ๐ ๐ฎ๐ฌ๐ฎ๐ฑโ๐ฎ๐ฒ ๐ฅ๐ฒ๐๐ฒ๐ฎ๐น๐ฒ๐ฑ | Biggest Reliefs & Tax Hikes Explainedย
The Government of India has officially unveiled the Union Budget for the fiscal year 2025โ26. Finance Minister [Insert Name] presented the budget in Parliament today, highlighting a balanced approach between economic growth and fiscal prudence.
๐ Key Highlights at a Glance:
- No change in income tax slabs for salaried individuals.
- Increased standard deduction limit from โน50,000 to โน75,000.
- GST rates revised for luxury items, alcohol, and tobacco.
- Record โน12 lakh crore allocated to capital expenditure.
- New startup incentives and MSME credit support.
- Fiscal deficit target lowered to 5.1% of GDP.
๐ข Major Reliefs: Whatโs Cheaper and Easier Now
Income Tax Relief:
Middle-class earners welcome the raise in the standard deduction, providing relief amid inflation. The rebate under Section 87A remains in place, continuing zero-tax liability for those earning up to โน7 lakh under the new tax regime.
Affordable Housing Push:
An additional interest deduction of โน1.5 lakh on home loans for first-time buyers has been reintroduced, aiming to boost real estate demand in Tier-2 and Tier-3 cities.
MSME and Startup Boost:
A new โน25,000 crore fund has been launched to support startups and MSMEs through low-interest credit and reduced compliance burdens.
๐ด Tax Hikes: What Just Got Costlier
Sin Taxes Raised:
Cigarettes, alcohol, and sugary drinks will now attract higher GST rates. The move is aimed at promoting public health and increasing revenue without burdening the middle class.
Luxury Goods:
Custom duties on imported luxury watches, perfumes, and electric vehicles have been increased to promote local manufacturing under the โMake in Indiaโ initiative.
TDS on Crypto Transactions:
The TDS rate on crypto asset transfers has been increased from 1% to 2%, signaling stricter monitoring of digital asset trading.
๐ผ Capital Expenditure & Infrastructure
The government has committed โน12 lakh crore towards infrastructure, highways, railways, and green energy. Major projects include:
- Bullet train corridor expansion
- New solar power parks
- Urban metro developments in 6 more cities
๐ Fiscal Management & Deficit Target
The fiscal deficit for 2025โ26 is projected at 5.1% of GDP, down from 5.8% in the previous year. The government remains committed to bringing it below 4.5% by 2027.
๐ฃ๏ธ Expert Reactions
Economists and market analysts have largely welcomed the budget, calling it โgrowth-oriented with social sensitivity.โ However, some critics argue that the lack of change in personal income tax slabs was a missed opportunity.
