Union Budget 2025-26: Income up to Rs 12 lakh tax-free; focus on farmer support, MSME growth
THE JHARKHAND STORY DESK Advertisement Advertisement New Delhi, Feb 1: While presenting the Union Budget 2025-26, the Finance Minister hinted at…
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THE JHARKHAND STORY DESK
New Delhi, Feb 1: While presenting the Union Budget 2025-26, the Finance Minister hinted at a major change in the tax regime and announced that a new Income Tax Bill would be introduced in Parliament next week. The biggest announcement in this budget was that individuals earning up to ₹12 lakh annually would not have to pay any tax. Previously, income up to ₹7 lakh was tax-free.
The standard deduction has been kept at ₹75,000. There has been no change in the old tax slab. Just like before, individuals with an annual income of up to ₹5 lakh under the old tax slab do not need to pay any tax. Additionally, a standard deduction of ₹50,000 is also available.
An annual income of ₹12 to ₹16 lakh will be taxed at 15%, ₹16 to ₹20 lakh at 20%, and ₹20 to ₹24 lakh at 25%. Income above ₹24 lakh will be taxed at 30%.
Govt to remove 7 tariff rates
During the budget speech, the Finance Minister said that the government has decided to remove 7 tariff rates. After this, only 8 tariff rates will remain.
The minister also proposed increasing the investment limit in the insurance sector from 74% to 100%.
Additionally, she stated that the MSME credit guarantee cover for micro-enterprises will be increased from ₹5 crore to ₹10 crore, which is expected to provide an additional ₹1.5 lakh crore in credit over the next five years.
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PM Dhan Dhanya Yojana for farmers
The Finance Minister announced the Pradhan Mantri Dhan Dhan Yojana for farmers in the budget, stating that the government will implement the scheme in collaboration with states. This initiative is expected to benefit 1.7 crore farmers. She emphasized that the government’s focus will remain on the welfare of the poor, youth, women, and farmers.
Loan limit under Kisan Credit Card increased to Rs 5 lakh
The loan limit under the Kisan Credit Card will be increased from ₹3 lakh to ₹5 lakh. The Finance Minister stated that the Kisan Credit Card has facilitated loans for 7.07 crore farmers.
She also highlighted that MSMEs contribute 45% of the country’s exports, emphasizing the need to expand credit access for them. The customized credit card limit for micro-enterprises will be set at ₹5 lakh.
Nuclear Energy Mission for Developed India
Finance Minister Nirmala Sitharaman announced a “Nuclear Energy Mission for a Developed India,” emphasizing that the development of at least 100 GW of nuclear energy by 2047 is crucial for the country’s energy transition.
To achieve this target, the government will amend the Atomic Energy Act and the Civil Liability for Nuclear Damage Act to encourage active participation from the private sector.
Broadband connectivity to schools and primary health centres
The Finance Minister announced that all government secondary schools and primary health centers will be provided with broadband connectivity to ensure better access to digital learning resources.
She also stated that a ₹10,000 crore government contribution will be allocated to fund startups. Additionally, for the first time, the government will provide a loan of ₹2 crore to five lakh women, SC, and ST entrepreneurs.
