February 1, The much-anticipated Union Budget 2025 has been presented. Finance Minister Nirmala Sitharaman has sparked discussions nationwide with the announcements in the budget. Experts are sharing their opinions, while the opposition is scrutinizing the budget.
Amidst this, the big question remains: what has the 2025 Budget offered to the common man? Experts have provided insights, highlighting a few concessions, reductions, and savings compared to last year’s budget.
Benefits for the Common Man in the Union Budget 2025:
- No income tax for individuals earning up to ₹12 lakhs annually.
- Individuals earning ₹25 lakhs can save up to ₹1,10,000 in income tax. Those earning ₹18 lakhs can save up to ₹70,000 in taxes.
- Direct tax exemption on 28 capital goods, including mobile phones and batteries
- Tax benefits for startups extended for the next 5 years.
- TCS exemption on education loans up to ₹10 lakhs.
- Expansion of health insurance benefits for workers under the PM Jan Arogya Yojana.
- Annual TDS threshold increased from ₹2.4 lakhs to ₹6 lakhs.
- Tax deduction limit for senior citizens raised to ₹1 lakh
- Establishment of SWAMIH Fund 2 to support middle-class housing projects.
- Complete customs duty exemption on 26 life-saving medicines.
- Customs duty on certain medicines reduced by 5%.
3 Major Changes in This Year’s Union Budget 2025
The government has waived off taxes under Section 87A for the second and third slabs. Additionally, a ₹75,000 standard deduction is introduced. This makes annual income up to ₹12.75 lakhs completely tax-free for salaried individuals. However, for those earning income from other sources, the tax exemption remains capped at ₹12 lakhs.
Under the new tax slabs, individuals earning up to ₹10 lakhs annually can save ₹50,000. For example, under the old tax regime, a person with a salary of ₹10 lakhs would have been taxed ₹50,000. However, after the revised tax slabs, this amount has been reduced to zero, resulting in direct savings of ₹50,000 for individuals earning up to ₹10 lakhs annually.
Prime Minister Modi’s good news for taxpayers: No income tax for individuals earning up to ₹12 lakhs.