Union Budget 2025 LIVE: Over 1 crore taxpayers will pay ZERO tax, says FM Nirmala Sitharaman

George Alexander Muthoot, MD of Muthoot Finance says the introduction of term loans of up to ?2 crore and structured capacity-building initiatives ?will drive small business growth.? He also added that 2025's Budget has been supportive towards the middle class.

? The proposed hike in tax collected at source threshold on remittances under the Reserve Bank of India's Liberalised Remittance Scheme from ?7 lakh to ?10 lakh should benefit the travel and foreign exchange sectors,? says Crisil Ratings director Poonam Upadhyay.

The UDAN scheme, and promotion of Global Capability Centres in emerging tier 2 cities will " support industry upcycle," says ICRA VP Srikumar Krishnamurthy.

?The Mission for Cotton Productivity initiative will empower cotton farmers to improve production, sustainably,? says Fabindia president Sumit Arora.

Vinay Dube, founder and CEO of Akasa Air said that 2025's Budget marks a significant step in supporting the sustained growth of India?s aviation sector. This move will make air travel more accessible, added the CEO.

Vipul Jain, the CEO of CK Birla Hospitals said the ease in visa grants will foster medical tourism in the country, which is ?a huge step to bolster the healthcare industry in India.?

?The Budget signals India?s intent to chart its own course, embracing regulatory reform while strengthening global competitiveness,? says Cyril Amarchand, senior partner at Cyril Amarchand Mangaldas.

? The reduction in personal income tax is one of the high points of the budget, which would give a huge consumption boost,? says President of Confederation of Indian Industry, Sanjiv Puri.

With the Urban Challenge Fund scheme, Rajiv Gupta, MD of wave City predicts there will be accelerated growth in the real estate segment. Expanding the nil tax limit to ?12 lakh, will also improve the ease of doing business, says the MD.

The government has reduced customs duty on life-saving drugs, electronic goods, fish and seafood, and more. Here's a complete list of which items have got cheaper and costlier after 2025's Budget.

Vedanta's Anil Agarwal said 2025's Budget has hit the "perfect note." He said that it would provide great relief to the middle-class, and will significantly reduce the tax burden for incomes up to ?24 lakh.

The reduction in BCD rates from 20% to 10% on specified ethernet switches, and exemption of  35 capital goods for EV battery manufacturing and 28 capital goods for mobile phone battery manufacturing will enhance domestic manufacturing capability of lithium-ion battery used for EVs and mobile phones, says Saloni Roy, partner at Deloitte.

CEO of Blue Planet Environmental Solutions, Prashant Singh says the exemption of customs duty on waste and scrap of lithium-ion batteries after Budget 2025 ?incentivizes e-waste recycling? and ?creates a level playing field for recycling players in India.?

The new tax slabs are applicable from FY25-26, or as indicated on the income tax portal as AY26-27 (Assessment Year 2026-27).

Under the new tax regime, individuals earning up to ?12 lakh annually will not have to pay any income tax. As per the rejig, for people earning more than ?12 lakh per annum, there will be nil tax for income up to ?4 lakh, 5 per cent for income between ?4 and 8 lahks, 10 per cent for ?8-12 lakh, and 15 per cent for ?12-16 lakh.

Dr Tom M Joseph, Co-founder of USDC Global is a strong advocate of the budget?s focus on skill development and technology in education. ?Establishing the National Centres of Excellence for Skilling will strengthen specialized training that will provide learners better opportunities to acquire industry-relevant expertise,? he noted. 

Adding that the ?500 crore allocation for a dedicated Centre of Excellence for AI in Education, ?shows the expanding role of technology in shaping modern learning.?

On AI driven solutions, Dr Joseph said these can enhance accessibility, customisation, and efficiency in education which will make learning more effective. 

Sagar Vishnoi, CoFounder of Future Shift Labs feels that the Union Budget's allocation of deep tech fund of funds along with 10,000 R&D fellowships is a ?novel idea? from the government and will ?fuel growth of startups and improve investments in tech startups?. 

?Such initiatives along with National & state?s framework for GCC will structure skilled workforce. However, outlay of 500 cr for centre of excellence for AI in education looks less, when we?re trying to compete with global counterparts,? Vishnoi added

Finance Minister Nirmala Sitharaman's Budget speech for 2025 went on for an hour and 25 minutes. Interim Budget 2024 was the shortest Budget Speech.

 After the Budget 2025, Zomato stock jumped to 9.2 % and Swiggy went up to10.8 %

? The ?500 crore allocation for a dedicated Centre of Excellence for AI in Education shows the expanding role of technology in shaping modern learning,? says Dr. Tom M Joseph, co-founder of USDC Global.

? The focus on enhanced ease of doing business with speedy approval of corporate mergers, liberalised FDI in insurance up to 100%, further simplification of compliances and decriminalisation of 100 additional provisions under business laws will boost investor confidence,? says Haigreve Khaitan, senior partner at Khaitan & Co

Nitin Baijal, executive director of Deloitte, India, says the revised tax slab rates will ensure greater disposable income for the middle class. The move is expected to drive consumption and further boost economic growth, he added.

? Budget has focused on key areas like rural farmers low income which will boost consumption both in the near term as well as long term,? says Motilal Oswal MD. He also added that the focus on MSME manufacturing will be positive for several sectors.

SpiceJet Chairman and MD, Ajay Singh, said the govt's UDAN scheme that plans to  introduce 120 new destinations and bring 4 crore additional passengers into the fold  will be a transformative shift for the aviation landscape in India. This initiative make air travel more accessible to remote regions, says the MD

From zero tax on income of up to ?12 lakh to cutting the income tax rates proposed in the new tax regime, Budget 2025 came as a much needed relief for the India's middle class. Here's how much tax you will save

DD Mishra, VP Analyst at Gartner, says the credit enhancement for MSMEs will boost the IT sector.  ?IT sector can draw encouragement from several measures, such as support for Global Capability Centres (GCCs), research and development (R&D), MSME funding.?

? The decision to establish daycare cancer centers in all district hospitals over the next three years, with 200 hospitals set to be operational by 2026 will make cancer care more accessible to all strata of society,? says Dr.Tarang Gianchandani , CEO of Sir H.N. Reliance Foundation Hospital.

Satishwar B., MD and CEO of Bandhan Life Insurance says that the increase in FDI allowance up to 100% for Insurance sector ?will attract capital and expertise, boosting market competitiveness, driving innovation, and offering consumers more choices.?

Dr. Hardik Ajmera, Medical Director of Saifee Hospital says the FM's proposal to exempt life-saving drugs and provide concession on custom duties will reduce ?rare diseases and chronic conditions, enabling quality treatment and reducing the fatality rate.?

Here's a look at the capex allocation for the major sectors:
Home Affairs - ?2.33 lakh crore

Agriculture - ?1.71 lakh crore

Education- ?1.28 lakh crore

Health - ?98,311 crore 

Defence and Rural Development received the most capex allocation of ?4.91 lakh crore, and ?2.66 lakh crore respectively.

ITC, GodfreyPhilips, and VST Industries shares gained after FM Nirmala Sitharaman did not announce any changes in the tobacco tax.

Nirmala Sitharaman proposed that the custom duty on import of propane/butane/LPG would be reduced to 2.5%-5% from the earlier 15%. This is likely to be a positive move for the OMCs.

HCC, Walchandnagar stocks soar after Finance Minister NirmalaSitharaman's announcement on nuclear power plans.

? The unique scheme to boost pulse production?focusing on urad, toor, and masoor?will not only secure sustainable farm incomes but also enrich the Indian food basket with nutrition-fortified staples,? says Amith Agarwal, co-founder and CEO of StarAgri.

Mukul Goyal, co-founder of Stratefix Consulting says the Union Budget 2025 has paved the way for a more ?resilient and robust MSME.?

Divya Baweja, partner at Deloitte India says FM Sitharaman emphasised on its vision of "trust first, scrutinize later" for the tax department. She added that the new tax changes are likely to bring ?cheer to everyone?.

?The government?s announcement to allow 100% Foreign Direct Investment (FDI) in the insurance sector will help facilitate entry of more players into the Indian market, thereby ushering in a new wave of competition, innovation and growth,? says Balachander Sekhar, Co-founder and CEO of RenewBuy

?This adjustment will enable more enterprises to avail MSME benefits, fostering growth and competitiveness,? says Mukul Goyal, Co-Founder of Stratefix Consulting. He predicts this initiative will inject an additional ?1.5 lakh crore in credit over the next five years.

Following the announcement about the changes in the tax slabs, Amit Shah posted on X that the ?middle-class is always in PM Modi?s heart'.

Following Nirmala Sitharaman's announcement about the tax slabs under the new tax regime, several experts have given their opinions on whether the changes are a relief to the middle class. Read here.

The new Income Tax slabs will ?reduce administrative burden on taxpayers as well as tax department as there will be no requirement of determining arm?s length price every year,? says Amit Maheshwari, Partner-Tax, AKM Global

Tax experts predict that the new Income Tax bill will be clear and concise than the existing bill ?It is expected to replace the existing Income Tax Act of 1961, with further details on the implementation date to be provided,? says IndusLaw partner Lokesh Shah

Zero Income Tax till ?12 lakh salary under New Tax Regime

• Slabs and rates being changed across the board to benefit all tax-payers
• New structure to substantially reduce taxes of middle class and leave more money in their hands, boosting household consumption, savings and investment
• ?Nil tax? slab up to ?12.00 lakh ( ?12.75 lakh for salaried tax payers with standard deduction of ?75,000)

Govt allows taxpayers to claim annual value of two self-occupied properties as nil, says FM Sitharaman

HUL, Godrej CP, Trent, Voltas, ITC, DMart shares rise after FM says No income tax payable for those with income up to ?12 lakh under the new tax regime.

House has been adjourned

Revised Tax slabs under New Tax Regime

?0-4 lakh - nil

?4-8 lakh - 5 per cent

?8-12 lakh - 12 per cent

?12-16 lakh - 15 per cent

?16-20 lakh - 20 per cent

?20-24 lakh - 25 per cent

Above 24 lakh - 30 per cent

FM Nirmala Sitharaman announced the establishment of Makhana Board in Bihar to improve processing processing, and enable value addition.

New Income-tax Bill to be Introduced by FM Sitharaman

• New bill will be clear and direct in text with close to half of the present law
• Will be simple to understand, leading to tax certainty and reduced litigation