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

Mobile phones are likely to get cheaper as 28 additional goods which are used in mobile phone battery production have been added to the exempted capital goods list.

According to tax experts, increasing the threshold for TDS/TCS on various payments and foreign remittances is likely to improve cash flows for the taxpayers.

 Taxpayers can now claim the annual value of two self-occupied properties as nil, exempting them from notional rental income taxation. Earlier, only one property could be claimed as self-occupied, with additional properties taxed based on deemed rental income.

Anil G. Verma, Executive Director and CEO Godrej Enterprises Group says the Union Budget 2025 has paved the way for growth in critical sectors such as clean energy, aerospace, and defence.

PM Modi said this budget is a “force multiplier” and will ‘increase savings’ 

“ On the international travel front, while the increase in the Liberalized Remittance Scheme (LRS) limit to ₹10 lakh is a step forward, we were hoping for exemptions on TCS for global travellers which remains a concern,” says Vinay Bagri, co-founder & CEO, Niyo

Budget 2025 LIVE: According to Nirmala Sitharaman's Budget 2025-26 announcement, these are the key metrics to look for in the upcoming financial year. 

1. Total receipts (excluding borrowings) - ₹34.96 lakh crore

2. Net tax receipts - ₹28.37 lakh crore

3. Total expenditure - ₹50.65 lakh crore

4. Capital expenditure - ₹11.2 lakh crore

5. Fiscal deficit - 4.4 per cent of GDP

(As per the budget estimates of FY2025-26)

Budget 2025 LIVE: According to Union Finance Minister Nirmala Sitharaman's announcement, imported touch-display panels and knitted fabrics are set to become more expensive. 

In 2020, a new tax regime was introduced for taxpayers and in 2024, capital gain structure was revamped. Meanwhile, in Budget 2025, Nirmala Sitharaman announced that no income tax would be payable for income up to ₹12.75 lakh under the new tax regime

In India, the highest income tax rate is 30 percent for individuals in the top income bracket, with an additional surcharge of up to 25 or 37 percent, depending on which tax regime they are under. In the US, the maximum income tax rate is 37 percent, which applies to income exceeding $609,000, roughly equivalent to ₹5.3 crore.

The new tax regime is likely to be more advantageous for younger taxpayers as they are not required to make forced investments. The change in tax slabs under the new tax regime would further enable taxpayers to adopt more advantageous wealth creation plans and even take risks.

According to experts, the Budget 2025's focus on giving relief to the middle class by raising the tax exemption limit will likely leave more spare money in the hands of investors. Some of this amount is likely to move to stock markets.

According to the new tax slab changes by Nirmala Sitharaman, the new tax regime aims to ensure that individuals have more disposable income to spend and invest in the manner they want. The new regime has brought the tax slabs down for the middle-income and low-income earners.

Suzlon's Vice Chairman Girish Tanti says the expected outcomes from Budget 2025 are promising. He added that the incentives for electricity distribution reforms and intra-state transmission upgrades will likely improve the financial health of power companies.

Analysts believe the budget remains positive for investors, favouring consumption-driven sectors. Experts answer on where should investors focus post Budget.

Government expenditures are diversified to support national security, promote public welfare, and drive economic development.

The government's money, which it plans to spend during the financial year 2025-26 comes from tax revenue collections , non-tax revenue earnings (9%) from dividends, earnings and fees.

Tata Technologies MD Warren Harris says, “the allocation of ₹500 crore for a Centre of Excellence in Artificial Intelligence for education underscores the importance of fostering innovation and research in AI."

The Indian government will spend a total of ₹50.65 lakh crore during the financial year 2025-26 as per the Union Budget 2025-26 presented by Finance Minister Nirmala Sitharaman

Indian stock market indices, Sensex and Nifty 50, ended flat amid high volatility today, 1 February 2025, after the Union Budget 2025-2026 was presented in the Parliament.

A Balasubramanian, MD and CEO of Aditya Birla Sun Life AMC Ltd says that the “~1.5 lakh crore capital expenditure/investment is expected to generate a ~ 3-4 lakh crore multiplier boost to the economy.” Expected interest rate cuts will also fuel economic expansion and employment, added the MD

Imported touch-display panels, and knitted fabrics have become ‘dearer’ after the Budget, as the the custom duty structure on it has been changed to 20 per cent or Rs115/kg, or whichever is higher.

Funds for start-ups and the alternate investment fund (AIF) have already attracted commitments exceeding ₹91,000 crore, says The Wealth Company MD, Madhu Lunawat. 

TATA AIG General Insurance MD, Amit Ganorkar says “ The increase in FDI limits will drive investment and enhance efficiency." He also added that the exemption from basic custom duty will reduce the financial burden on patients.

Bank of Baroda MD, Debadatta Chand, says “There is boost to the corporate bond market including municipal bonds which will have a big role to play in financing investment required in the coming years.”

“Budget announcements for FY26 have managed to hit the right balance between the need for a consumption stimulus and structural support towards a sustainable growth path for the economy," says Sudipta Roy, MD & CEO, L&T Finance Ltd

GP Hinduja, Chairman, Hinduja Group says the Union Budget 2025 has proved to be a 'Brahmastra' fired by finance minister Nirmala Sitharaman.

The budget proposals have proved to be a relief for the the middle class, and has paved the way for “helps, no hurts” outcome for the capital markets and investor community, says Gokul Chaudhri, President – Tax, Deloitte India

FM Nirmala Sitharaman, during the press conference post Budget, said that taxpayers now have more money, after the change in income tax slabs. Hemal Thakkar, senior practice leader at Crisil Intelligence agreed with the same, and said that more money in the hands of taxpayers would add momentum to sectors such as two-wheelers and consumer durables.

With zero income tax for salaries up to ₹12 lakh, finance minister Nirmala Sitharaman announced a massive tax relief for salaried employees in Budget 2025

“ SWAMIH Fund – 2 will provide an impetus for growth of the real estate sector,” says Mrinal Kumar, partner at Shardul Amarchand Mangaldas Co. The SWAMIH Fund 2 aims at helping middle class families who are paying EMIs on loan taken for apartment and also paying rent for current dwelling units.

The capital expenditure for the financial year 2025-2026 has been raised to ₹11.2 lakh crore. This move is “new and refreshing, packed with initiatives that promise to boost consumption, entrepreneurship, agriculture and economic growth,” says Subhash Chand Aggarwal, Chairman & MD, SMC Global Securities Ltd

The Union Budget 2025 has extended the time limit to file updated tax returns from 24 months to 48 months from the end of the relevant assessment year.

After the Union Budget 2025, NPS Vatsalya contributions—a pension scheme for children—are now officially eligible for tax deductions under Section 80CCD of the Income-tax Act, 1961.

National Savings Scheme (NSS) withdrawals made on or after 29 August 2024, will be tax-exempt for amounts previously eligible for deductions, said FM Nirmala Sitharaman

FM Nirmala Sitharaman decided to fully exempt the basic customs duty on Wet Blue Leather. India aims to help imports for domestic value addition and employment.

Shashi Mathews, partner at IndusLaw says the Union Budget 2025 ‘appears to be an attempt of the Government' to prescribe a limitation period of one year in respect of amendment of bills of entry.

Deepak Shenoy highlighted that only the new tax regime has changed. “The old regime charges 30% if you make more than 10L, but you get exemptions,” he added.

Tushar Agarwal, co-founder of Stashfin says the Union Budget 2025 has paved the way for strengthening India’s financial ecosystem, particularly for first-time entrepreneurs.

“ The allocation of Rs. 15,000 crore towards SWAMI Fund 2 and the setting up of Urban challenge fund of Rs. 1 lakh Crore for redevelopment of cities will boost infrastructure development and demand for construction materials,” says Satish Kumar Agarwal, CMD, Kamdhenu Limited.

A. Gururaj, MD of Optiemus Electronics says “ the Union budget has rightfully given impetus on boosting the purchasing power of a large population with Tax relaxation and support to Agriculture and farming community."

The government has put “substantial amount of money in hands of people through I-T rate rejig in Budget” says FM Nirmala Sitharaman.

FM Nirmala Sitharaman, during the press conference after Budget 2025, said that over 1 crore more people will pay no income tax due to hike in rebate to ₹12 lakh in FY26 Budget.

FM Nirmala Sitharaman announced there will be no income tax for salaried taxpayers earning up to ₹12.75 lakh in the new tax regime. Should you choose the new tax regime? Read here.

The Budget has provided for “resilience in the healthcare infrastructure of the country through cancer day centres,” says Satish Reddy, Dr. Reddy’s Laboratories Limited Chairman. The budget has paved the way for ‘Heal in India,' added Satish Reddy.

“ The new income tax bill is expected to be introduced next week, and will bring in reforms designed to ensure tax certainty and reduce litigation,” says Deloitte India executive director Deepika Mathur.

“ The new 1.27 million tonne plant, to be set up in Assam, will augment the domestic urea manufacturing capacity by ~4%, reducing import dependency,” says Crisil Ratings director Anand Kulkarni. He also added that the addition of the new urea plant will help the fertiliser sector move towards self-sufficiency.

FM Nirmala Sitharaman says that the govt did not want to repeat the old tax regime. The focus was on a new tax regime, that would bring the rates down, added the FM.

Nirmala Sitharaman says that the changes in the Income Tax slabs would benefit all people across all the different tax stratas.

Press conference with Nirmala Sitharaman begins