Income Tax Budget 2025 Highlights: Who is likely to benefit most from FM Nirmala Sitharaman's tax slab change?

Rationalisation of TDS provisions is a welcome step, according to Rohit Garg, Partner, Shardul Amarchand Mangaldas & Co. 

“Though, there was a need to rationalise these TDS provisions and it was expected that a singular (or max three rates) should be in place, yet the provisions currently rationalised does provide some easing out on the compliance and administrative burden,” Garg said.

Tarun Singh, Founder and MD of Highbrow Securities feels the Union Budget 2025-26 presents both opportunities and challenges that will shape India's economic trajectory. 

He lauded the MSME measures but noted… “however, the budget’s heavy reliance on disinvestment and privatisation raises concerns. Similarly, raising the income tax exemption limit to ₹12 lakh provides relief but lacks alignment with broader growth strategies.”

Despite these concerns, the proposed tax reforms promote inclusivity by reducing compliance burdens, he said, adding “Lowering TDS thresholds and extending tax return timelines benefit small businesses, startups, and those with variable incomes. Simplifying tax laws and encouraging voluntary compliance will create a more transparent and equitable system."

Vishwas Patel, JMD Infibeam Avenues and Chairman of Payment Council of India belives the Union Budget presents a positive trajectory for the Indian economy, “with strategic measures aimed at enhancing consumption, fostering innovation, and accelerating digital transformation”. 

'One of the most impactful provisions is the tax relief up to ₹12 lakh, which significantly increases disposable income for individuals. This is expected to stimulate household consumption, driving demand across various sectors. With higher consumer spending, the digital payments ecosystem is poised for exponential growth, further strengthening India’s financial technology landscape," he added.

“The individual tax rate cuts will lead to higher disposable income, increasing domestic consumption, which in turn will stimulate demand across industries and encourage private sector capital expenditure—a crucial factor for sustained economic expansion,” feels Thomas John Muthoot, Chairman of Muthoot FinCorp.

“Overall, this Budget lays a strong foundation for a self-reliant, resilient, and high-growth India. By prioritizing investment, employment, financial inclusion, and private sector participation, it paves the way for a prosperous and developed economy. The focus on sustainable and inclusive growth will ensure that India remains on track to achieving the vision of ‘Viksit Bharat',” he added.

Ajay Bansal, CEO of DHI International is appreciative of Finance Minister Nirmala Sitharaman's “strong budget that focuses on India's middle class”.

He noted that the “generous income tax cuts will certainly put more funds in the hands of the middle class, making over 1 lakh crore available for consumption, which is expected to drive significant growth.”

“Overall, this is a well-thought-out budget that takes into account the needs of India’s most vital demographic. It is a step in the right direction for India’s continued growth and prosperity,” Bansal added.

Rajat Bose, Partner, Shardul Amarchand Mangaldas & Co feels the Budget 2025 placed emphasis on trust in the industry and provides certain quantitative measures aimed at ease of doing business. 

“The tax proposals in the Union Budget 2025-26 reflect a strategic move towards broadening the tax base while simultaneously promoting economic growth. By focusing on simplifying compliance, incentivising investment, and fostering a more progressive tax structure, the government aims to stimulate both domestic consumption and long-term structural reforms," Bose said.

Harpreet Oberoi, Partner at Jotwani Associates on tax reforms believes that the multiple tax reform measures in the Budget seek to increase economic growth and ease business operations throughout India. Under the new tax system,

“The Indian budget aims to achieve long-term economic targets through its main objectives, which combine investment promotion and financial system enhancement for sustainable development. The government, through these tax reforms, demonstrates its dedication to simplifying business processes and increasing consumption while developing a growth-oriented economic infrastructure,” Oberoi said.

Income Tax Budget 2025 LIVE: Vivek Jalan, Partner Tax Connect Advisory Services LLP commented on the new tax regime:

"Budget 2025 is for three Ms -Manufacturing, Middle Class and MSMEs. Customs duty on capital goods and raw material imports have been rationalised to promote manufacturing, especially on lithium Ion batteries. MSMEs have also been a special focus in this budget. 

The Biggest big bang change of course is the exemption of tax for middle class with income upto ₹12 Lakhs.  As expected income tax TDS/ TCS provisions have been revamped and rationalised. There are 71 sections covering TDS/TCS having multiple thresholds andrates. 

Industry had pitched in for complete revamp of TDS/TCS provisions and this budget has moved in the direction. For example, on same goods purchase there was a TDS u/s 194Q as well as TCS u/s 206C(1H). This created hardship and in this budget TCS has been scrapped to provide much needed relief."

Income Tax Budget 2025 LIVE: The new tax regime benefits middle-income earners by lowering the income threshold for tax payments. The introduction of higher exemptions in the new structure has been designed to stimulate household consumption, savings, and investments.

Old Tax Regime: Offers greater flexibility with exemptions and deductions (e.g., HRA, LTA, etc.), but the tax rates are comparatively higher.

New Tax Regime: Offers lower tax rates but with fewer exemptions and deductions, making it easier for taxpayers to file taxes and plan finances with less complexity.

Income Tax Budget 2025 LIVE: To make NPS Vatsalya more attractive, Finance Minister Nirmala Sitharman on Saturday proposed tax exemption for contribution up to ₹50,000 per year under the scheme.

"I am also proposing to allow similar treatment to NPS Vatsalya accounts as is available to normal NPS accounts, subject to overall limits," she said while presenting Budget 2025-26 in Lok Sabha.

However, the tax benefit would be availed by those who opt for old tax regime. NPS-Vatsalya scheme, announced in the Union Budget 2024-25 as a plan that allows parents and guardians to contribute to minors' accounts, was launched on September 18, 2024.

A total of 89,475 subscribers have joined the scheme with Assets Under Management (AUM) of 61.98 crore. The enrolments under the Scheme would further increase with the tax exemptions allowed in the Budget.

Parents can subscribe to NPS Vatsalya online or visiting a bank or post office. The minimum contribution to open Vatsalya account is ₹1,000. Subscribers will have to contribute ₹1,000 annually thereafter.

Under the NPS Vatsalya scheme, all minor citizens up to the age of 18 are eligible to open an account. The account is opened in the name of the minor and managed by their guardian until the child reaches adulthood, ensuring that the minor remains the sole beneficiary throughout the process.

Income Tax Budget 2025 LIVE:Taxpayers were also hopeful of increased standard deduction limits and rebate adjustments under both regimes:

Standard deduction limit: Currently, the old tax regime offers a standard deduction of Rs. 50,000, while the new tax regime offers Rs. 75,000. There are expectations of a possible hike in these limits to provide more relief to taxpayers.

Section 87A rebate: In the new tax regime, the Section 87A rebate provides up to Rs. 25,000 for individuals earning up to Rs. 7,00,000 annually. In contrast, the old tax regime offers a rebate of Rs. 12,500 for annual incomes up to Rs. 5,00,000. It’s expected that the government may increase the rebate to further aid middle-class taxpayers.

Income Tax Budget 2025 LIVE: The number of retail investors in India surged to 132 million as of December, up from 49 million in FY20, reflecting a growing trust in the capital markets, showed Economic Survey released by the government on Friday. 

Monthly SIP contributions have more than doubled in the last three years, growing from Re 0.10 lakh crore in FY22 to Re 0.23 lakh crore in FY25. 

As of December 2024, retail investors hold mutual fund units worth ₹18.6 lakh crore, reflecting strong confidence in this investment option. The total number of mutual fund folios has risen to 22.5 crore, up from 17.8 crore at the end of FY24, according to the survey.

Income Tax Budget 2025 LIVE: Nisreen Mamaji of MoneyWorks on tax rebate:

"The tax exemption of up to ₹12 lakh income does not mean that a salaried person earning ₹15 lakh will be taxed only on the remaining ₹3 lakh. The exemption limit exists only for those earning up to ₹12 lakh. Those with higher taxable income must follow the slab-wise taxation process.

So, on a taxable income of ₹12.1 lakh, the income tax liability would be ₹61,500—sum of five per cent tax on income of ₹4 lakh-8 lakh, 10 per cent on ₹8 lakh-12 lakh, and 15 per cent on ₹12 lakh-16 lakh. Similarly, an individual earning ₹15 lakh will end up paying a tax of ₹1,05,000," said Nisreen Mamaji, Founder and Mutual Fund Distributer, MoneyWorks Financial Services

Income Tax Budget 2025 LIVE: A standard deduction of Rs. 75,000 is available to a tax payer in the new regime. Therefore, a salaried tax payer will not be required to pay any tax where his income before standard deduction is less than or equal to ₹12,75,000.

Income Tax Budget 2025 LIVE: Any individual earlier was required to pay a tax of ₹80,000 (in the new regime) for an income of Rs. 12 lacs. Now he will be required to pay nil tax on such income.

Income Tax Budget 2025 LIVE: Rationalising TDS provisions, the finance minister increased the thresholds for non-deduction across various TDS provisions, broadly ranging from ₹5,000 to ₹50,000. The threshold for TDS on rent has been increased from ₹2.40 lakh to ₹6 lakh. Apart from that, omissions of higher TDS/TCS rates are now applicable for non-filers.

Commenting on the Budget, Christian de Guzman, Senior Vice President, Moody's Ratings, said: "As the government unveiled its budget for 2025-26 amid a somewhat dampened macroeconomic backdrop as compared to recent years, it has had to slow the pace of fiscal consolidation to provide firmer support to growth."

"In particular, announced tax relief measures have constrained the growth of revenue receipts, which will rise at its slowest pace since 2022-23; as such, falling expenditure as a share of GDP has borne the brunt of the projected narrowing of the fiscal deficit even as the emphasis on capital expenditure has been sustained," he said.

Income Tax Budget 2025 LIVE: Individuals earning up to ₹12 lakh in a year will not have to pay any taxes after she raised the exemption threshold from ₹7 lakh. An additional ₹75,000 standard deduction is available for the salaried class. 

Presenting her eighth straight budget, she also altered tax slabs for people earning above this threshold to help save up to ₹1.1 lakh in taxes for those with income up to ₹25 lakh in a year. 

"The new structure will substantially reduce taxes on the middle class and leave more money in their hands, boosting household consumption, savings and investment," Sitharaman said, presenting what was dubbed as a 'reformist' budget for the next fiscal in Lok Sabha.

The Budget for the April 2025 to March 2026 fiscal year (FY26) proposed raising the foreign investment limit in the insurance sector to 100 percent from the current 74 percent and continuing the spending spree on infrastructure while raising allocations for social sectors and providing for measures for the poor, youth, farmers, and women.

Income Tax Budget 2025 LIVE: New tax rates FY 2025-26

Income Tax Budget 2025 LIVE: How much tax will be paid by a taxpayer with an income of ₹12,10,000? What is marginal relief?

--The tax liability on such taxpayers by way of slabs is only Rs. 61,500. However, a person having ₹12 lac income pays nil tax. By providing marginal relief it has been ensured that the tax payable by a person having income marginally above ₹12 lacs is required to pay only marginal amount of tax equal to the amount of income above ₹12 lacs so that his carry home is also ₹12 lacs. In this case he will be required to pay a tax of ₹10,000.

Income Tax Budget 2025 LIVE: Old tax rates FY 2024-25

Income Tax Budget 2025 LIVE: Raghvendra Nath, MD, Ladderup Wealth Management said, "After a long time, the middle class has a reason to cheer. By moving the tax exemption to Rs.12 lacs, the current income tax proposal is going to leave a lot of money in the hands of the middle class. 

While the government is foregoing Rs.1 lac crore of Income Tax, we think the increase in consumption can help offset some of the exchequer loss. On the fiscal side a budget estimate of 4.4% is tad on the higher side. I think the government recognizes the recent slowdown and the importance of govt expenditure to maintain the growth momentum," said Nath.

Income Tax Budget 2025 LIVE: In the new regime under section 115BAC(1A), marginal relief is available to only resident individuals who have income marginally above Rs. 12 lacs. For example, for a person having income of Rs. 12, 10,000, in the absence of marginal relief, the tax works out to be Rs. 61,500 (five per cent of ₹4 lacs+10 per cent of 4 lac and 15 per cent of Rs.10 thousand). However, due to marginal relief, the amount of tax to be actually paid is Rs. 10,000.

Income Tax Budget 2025 LIVE: One crore middle-income Indian taxpayers will be out of tax net according to announcements in the Union Budget 2025 presented by Finance Minister Nirmala Sitharaman on Saturday.

"One crore people will pay no tax," the Finance Minister told reporters at a post-Budget press conference. She was answering a query about the number of people who will be out of the tax net with the new proposals. It's a very responsive government. As a result, the income tax simplification, which I announced in July, is already completed in its works, and we shall bring the bill next week. 

So the income tax simplification, about which in July budget I have gone in detail and the work is completed in six months, Within six months, we have brought the bill. It will be coming in the Parliament next week," she said.

Income Tax Budget 2025 LIVE: A standard deduction of Rs. 75,000 is available to a tax payer in the new regime. Therefore, a salaried tax payer will not be required to pay any tax where his income before standard deduction is less than or equal to ₹12,75,000.

Income Tax Budget 2025 LIVE: With the money saved with the new tax slabs, experts say rather than spending the extra savings, it’s an ideal opportunity to channel these funds into investments. By doing so, individuals can maximize the power of compounding, turning savings into long-term wealth. 

“This new approach creates a strong foundation for financial growth, allowing taxpayers to benefit from the government’s efforts to put more money in their hands. The ultimate aim is not just immediate relief but to foster a culture of saving and investing, ensuring financial security and contributing to economic growth in the years to come,” said Priyank Shah, Co-Founder & CEO of The Financialist

Income Tax Budget 2025 LIVE: Earlier the limit of income for nil tax payment was ₹7 lack. By increasing this limit to ₹12 lakh around one crore assessees who were earlier required to pay tax varying from ₹20,000 to ₹80,000 will be now paying nil tax.

Income Tax Budget 2025 LIVE:  In the proposed new tax regime, the maximum total income for which tax liability for individual taxpayers is nil is Rs. 12 lakhs. The benefit of such nil tax liability mentioned above is available only in the new tax regime. 

This new tax regime is the default regime. According to FAQs, to avail of the benefit of rebate allowable under proposed provisions of the new tax regime, only a return is to be filed; otherwise, no other step is required to be taken. 

Income Tax Budget 2025 LIVE: The new regime provides for concessional tax rates and liberal slabs. However, no deductions are allowed in the new regime (other than those specified for e.g. 80JJAA, 80M, standard deduction). 

Income Tax Budget 2025 LIVE: During Budget 2025, FM Nirmala Sitharaman announced new tax rates, offering relief to the salaried taxpayers. With a higher tax rebate of upto ₹60,000 against ₹25,000 earlier and a higher standard deduction of 75,000, now taxpayers earning upto ₹12 lakh need not pay any income tax.

This triggers an old debate between old tax regime and new tax regime. However, if you are also confused between which tax regime to opt for, all you need to do is to enter all your earnings into the calculator, which will tell you the exact tax.

Income Tax Budget 2025 LIVE: The fast-moving consumer goods (FMCG) sector welcomed the tax cuts announced in the Union Budget 2025-26 with nearly a three per cent gain—its biggest budget-day gain since 2012.

The budget 2025, presented by Union finance minister Nirmala Sitharaman in the Parliament on Saturday, focused on boosting consumption by providing tax breaks to the middle class—a welcome relief for the sector facing sluggish demand.

All major packaged consumer goods ended the day in green. Britannia Industries Ltd rose three per cent, Godfrey Phillips India Ltd nine per cent, ITC Ltd six per cent, and Hindustan Unilever Ltd four per cent, even as the frontline indices showed little reaction.

Income Tax Budget 2025 LIVE: In India, the maximum income tax rate is 30 per cent for those in the highest income bracket before a surcharge of up to 25 or 37 per cent depending on which regime (new or old) and a four per cent cess on the combined figure. In Budget 2023, the government cut down the maximum surcharge from 37 per cent to 25 per cent for those filing returns as per the new tax regime. This practically inflates the total income tax rate to 39 per cent in the new tax regime or 42.7 per cent in the old tax regime.

Income Tax Budget 2025 LIVE: Experts sense continuity from previous budget session

“The Union Budget has been quite pragmatic in terms of content and balanced fiscal prudence with effective measures to push forth growth. This is why it needs to be commended. The fiscal deficit ratio has been lowered to 4.4 per cent which also keeps in check the borrowing programme and hence should assuage the bond market and yields. 

Major relief for individual taxpayers has long been a demand that has been met quite decisively this time, which should aid consumption. In fact, depending on the choice of individuals, the money saved on taxes would also be deployed for savings, which will be useful for banks in particular," said Madan Sabnavis, Chief Economist at Bank of Baroda.

"Industries too will benefit on both the consumer and infra sides as people spend money on consumer goods and the government keeps spending on infra projects. One can hence sense a lot of continuity in the budget in terms of expenditure priorities with a very good balance being drawn between social welfare and project expenditure - both of which are needed for the country today," added Sabnavis. 

Income Tax Budget 2025 LIVE: Finance Minister Nirmala Sitharaman proposed to increase in the threshold for Tax Deduction at Source (TDS) on rent from ₹2.40 lakh per annum to ₹6 lakh per annum in her Budget 2025 speech. This effectively raises the monthly limit for TDS deduction on rent from ₹20,000 to ₹50,000, benefiting small taxpayers and easing compliance burdens.

Income Tax Budget 2025 LIVE: If an earning individual has an annual income of ₹12.20 lakh, then in that case, its net income tax outgo would come to ₹62,000 ( ₹20,000 on ₹4 lakh to ₹8 lakh, ₹40,000 on ₹8 lakh to ₹12 lakh income and ₹2,000 on ₹12 lakh to ₹12.20 lakh.

In this scenario, according to experts, the margin benefit allows an earning individual to pay one's income above ₹12 lakh and claim Section 87A benefit to avoid higher income tax outgo due to ₹20,000 income above ₹12 lakh.

Income Tax Budget 2025 LIVE: "A taxpayer can claim tax exemption under Section 87A on an income up to ₹12 lakh in one financial year. However, in the case of one's income exceeding this ₹12 lakh exemption limit, Budget 2025 provides the taxpayer with an additional marginal benefit. 

In this marginal benefit, an earning individual with an annual income of over ₹12 lakh can calculate the net income tax outgo as applicable under the various income tax slabs. 

If its income tax outgo is higher than its income above ₹12 lakh, then one has the luxury of paying the income above ₹12 lakh to the income tax department instead of the actual income tax outgo," said Pankaj Mathpal, MD & CEO at Optima Money Managers.

Income Tax Budget 2025 LIVE: The Finance Bill 2025 proposals mark a directional shift towards a growth strategy based on consumption rather than government led capital expenditure. In the last few years the government has made significant investment in infrastructure to boost growth. This was necessitated by softness in private investment evidenced by slow capex and credit growth. 

"While the growth figures have been encouraging, the government’s ambition of achieving growth rates close to double digits remains a far cry. This budget demonstrates a change of gear - a greater reliance on private sector and domestic consumption to boost higher levels of growth.  government capital expenditure," said Himanshu Sinha, Partner and Head of Tax Practice, Trilegal

Income Tax Budget 2025 LIVE: Finance Minister Nirmala Sitharaman on Saturday announced significant income tax cuts for the middle class and unveiled a blueprint for next generation reforms as she looked to shore up a slowing economy amid global uncertainties. The tax cuts, which will cost the exchequer about ₹1 lakh crore, will benefit 6.3 crore people, or more than 80 per cent of taxpayers, who earn up to ₹12 lakh a year.

Income Tax Budget 2025 LIVE: Anirudh Garg, Partner and Fund Manager at Invasset PMS: The Union Budget 2025 has introduced several tax reforms and sector-specific initiatives that are likely to shape market sentiment and economic growth. 

The decision to forgo ₹1 lakh crore in direct taxes and offer full tax exemption up to ₹12 lakh income under the new regime is expected to boost consumer spending, benefiting sectors such as FMCG, automobiles, and retail. The middle class and salaried professionals will have more disposable income, driving demand in these areas."

Income Tax Budget 2025 LIVE:  "Due to the revised tax slab rates and changes in the Section 87A rebate, an assessee who does not opt out of the default tax regime always remains in a favourable position, even when deductions under Sections 80C, 80D and 24 (b) are claimed under the normal tax regime. Under Budget 2025, the Section 87A rebate will no longer apply to income taxed at special rates. As a result, taxpayers with special rate income will not be eligible for the rebate benefit under Section 87A," CA Shivam Gupta, Taxmann told Livemint.

Budget 2025 provides significant relief to the middle class, making incomes up to ₹12 lakh tax-free. The budget introduces a simpler, more transparent tax system, focusing on trust and self-certification.

Vedanta's Anil Agarwal in a post on X on Budget 2025:

The Budget has hit the perfect note, providing great relief to the middle-class by making incomes up to ₹12 lakh per annum completely tax-free. This is the biggest section of the middle-class. It has also significantly reduced the tax burden for incomes up to ₹24 lakh.

We have made a decisive move to a world-class tax system which will be simple, transparent and friendly to taxpayers.

The spirit of tax reform is going to be seen in other parts of the economy with trust and self-certification at the core. This will provide a very big boost to manufacturing and mining.

I am delighted that mining is one of the 6 domains identified for transformational reforms over the next 5 years.

Along with mining, agriculture is also a priority, particularly with the goal of achieving self-sufficiency in areas like edible oils.

Mining, agriculture, manufacturing (including electronics, which is a thrust area for the government) can all help increase domestic production, reduce imports and create millions of good jobs in India.

I congratulate the PM and FM for a visionary Budget which has stimulated the perfect jugalbandi of robust consumption growth and accelerated investment - the keys to a #ViksitBharat.

In a major relief for taxpayers, Finance Minister Nirmala Sitharaman on Saturday announced an increase in the threshold for Tax Deduction at Source (TDS) on rent from Rs2.40 lakh per annum to Rs6 lakh per annum while presenting the Union Budget 2025-26.

"The increase in threshold amounts for tax deduction brings much-needed relief to senior citizens. A major portion of the income of senior citizens in from interest income. They also tend to hold a larger amount in their SB accounts. The tax deduction limit on interest income is being doubled from ₹50,000 to ₹1 lakh, eases their tax burden on these savings.

Additionally, the annual TDS limit on rent is being raised from ₹2.40 lakh to ₹6 lakh, significantly reducing TDS transactions for those receiving modest rental income. These changes provide much needed financial relief and simplicity, especially for retirees who rely on interest and rental earnings for their post-retirement financial stability," said Adhil Shetty, CEO, BankBazaar.com

Defence Minister Rajnath Singh on Saturday congratulated Finance Minister Nirmala Sitharaman for presenting a "wonderful" Budget towards fulfilling the resolve of Prime Minister Narendra Modi.

"I congratulate the Finance Minister, @nsitharaman, who has presented a wonderful Budget towards fulfilling the resolve of Prime Minister Mr. @narendramodi ji to develop India. This Budget will promote the development of youth, poor farmers, and women, as well as all sections and regions of the society," Singh said in a post on X.

"This is a forward-looking, middle class-friendly budget that promises to boost spending, stimulate development, and set the stage for India’s growth in the coming years.

With the launch of a modified UDAN scheme that will introduce 120 new destinations and bring 4 crore additional passengers into the fold over the next decade, the aviation landscape in India is set for a transformative shift. This initiative will not only make air travel more accessible to remote regions but will also drive economic growth and tourism, further empowering local economies.

UDAN has proven to be one of the most successful schemes under the Modi government, and as the first private airline to participate, SpiceJet remains fully committed to actively supporting its continued growth."

In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman announced significant changes to the income tax structure, particularly under the new tax regime. The tax-free income threshold has been raised to ₹1.2 million, and the tax slabs have been adjusted to benefit low- and middle-income taxpayers.

These reforms aim to increase disposable income, thereby boosting consumption and stimulating economic growth. However, the new tax regime continues to exclude most deductions and exemptions.

"The choice between the old and new tax regimes is not one-size-fits-all. It depends on your income structure, investments, and financial goals. Evaluate both before making a decision.

Given the recent changes, it's advisable to reassess your financial situation to determine which tax regime aligns best with your objectivesm," said Abhishek Soni, CEO and Co-founder Tax2win.

Zero income tax up to an income of ₹12 lakh per annum as announced in the union budget on Saturday is a 'historic relief' for the middle class, TDP said. "Historic relief for the middle class. Zero income tax up to ₹12 lakh – more savings, more spending power," Telugu Desam Party spokesperson Jyothsna Tirunagari said in a post on 'X'.

“The Union Budget reflects a strong commitment to empowering MSMEs, agriculture, and rural credit, which are the backbone of India’s vision for attaining Viksit Bharat. The enhanced focus on credit access for small businesses and farmers will catalyze growth and financial inclusion. Additionally, the increase in tax exemption to ₹12 lakh is a significant step in boosting disposable income and strengthening consumption. Indian Bank remains committed to supporting these initiatives, driving sustainable economic progress, and financial inclusion,” said Indian Bank’s MD & CEO, Shri Binod Kumar

“The reduction of Jewellery duty from 25% to 20% is a welcome move. For a country like India who is known for its high jewellery consumption, this will definitely boost the demand in the domestic market specially in luxury. Similarly, slashing of duty on platinum finding from 25% to 5% is yet another bold move which will prove beneficial for the entire gems and jewellery industry,” said Colin Shah, MD, Kama Jewelry

“This opens up opportunities to explore a variety of wealth-building avenues, from traditional investments like mutual funds and stocks to digital assets like crypto. It encourages financial planning, empowering individuals to diversify their portfolios, and supports long-term wealth creation,” says Edul Patel, CEO and Co-founder of Mudrex.

The decision to raise FDI in insurance to 100% will drive greater capital infusion into the sector. This move will not only deepen investments but also foster innovation, enhance competition, and accelerate insurance penetration. “We welcome this progressive reform, which aligns with our commitment to delivering greater financial security to Indians. With strengthened investment, the industry can further drive digital transformation, develop customer-centric solutions, and expand its reach to those who need it most,” said Prashant Tripathy, MD & CEO, Axis Max Life Insurance.

Anirudh Garg, Partner and Fund Manager at Invasset PMS: The Union Budget 2025 has introduced several tax reforms and sector-specific initiatives that are likely to shape market sentiment and economic growth. The decision to forgo ₹1 lakh crore in direct taxes and offer full tax exemption up to ₹12 lakh income under the new regime is expected to boost consumer spending, benefiting sectors such as FMCG, automobiles, and retail. The middle class and salaried professionals will have more disposable income, driving demand in these areas.