Tax Exemption up to ₹12 Lakh in This Budget! Know the Major Announcements of the 2025-26 Union Budget

New Delhi, February 1, 2025 – Union Finance Minister Nirmala Sitharaman today presented the Union Budget for 2025-26 in the Parliament. The primary focus of this budget is to strengthen the concepts of rapid economic growth, inclusive development, and a self-reliant India (Atmanirbhar Bharat).

In this budget, agriculture, MSMEs (Micro, Small, and Medium Enterprises), investment, and exports have been declared as the “four engines of growth.”

Key Highlights:

1. Reforms in the Agriculture Sector:

  • Pradhan Mantri Dhan-Dhanya Krishi Yojana: To be launched in 100 low-production districts to boost agricultural productivity.
  • Pulses Self-Reliance Mission: A six-year plan to increase the production of tur, urad, and masoor (pulses).
  • Makhana Board (in Bihar): Established to promote the production, processing, and marketing of makhana.
  • Kisan Credit Card (KCC): Credit limit increased from ₹3 lakh to ₹5 lakh.

2. Boost to the MSME Sector:

  • Investment and annual turnover limits for MSMEs have been doubled.
  • Credit Guarantee Scheme: Guarantee cover extended for loans up to ₹10 crore.
  • New Scheme for Women and SC/ST Entrepreneurs: Provision of term loans up to ₹2 crore for 5 lakh new entrepreneurs.

3. Focus on Investment and Innovation:

  • Saksham Anganwadi and Poshan 2.0: Nutritional support for 8 crore children and 1 crore pregnant women.
  • Atal Tinkering Labs: Establishment of labs in 50,000 government schools to foster interest in science and technology.
  • Artificial Intelligence (AI) Centers: ₹500 crore allocated for reforms in the education sector.

4. Key Measures for Export Growth:

  • Export Promotion Mission: To be launched in collaboration with various ministries to boost exports.
  • Bharat TradeNet: Digital infrastructure for international trade.

Tax Reforms:

  • Personal Income Tax Exemption: Income up to ₹12 lakh is now tax-free, and for salaried individuals, the exemption limit is ₹12.75 lakh.

New Tax Slabs:

  • ₹0–4 lakh: Tax-Free
  • ₹4–8 lakh: 5%
  • ₹8–12 lakh: 10%
  • ₹12–16 lakh: 15%
  • ₹16–20 lakh: 20%
  • Above ₹20 lakh: 30%

Other Major Announcements:

  • Jal Jeevan Mission: Target to ensure 100% rural water supply by 2028.
  • Nuclear Energy Mission: Goal to achieve 100 GW nuclear energy production by 2047.
  • Urban Development Challenge Fund: ₹1 lakh crore allocated for urban reforms.
  • Investment in Space Sector: Special incentives for satellite launches and research.

Conclusion:

The Finance Minister described this budget as being based on the long-term vision of a “Developed India.” Significant decisions have been made for the common citizens, entrepreneurs, farmers, women, and the youth. This budget is expected to provide a substantial boost to economic stability, investment growth, and job creation.

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