Union Budget 2025 Highlights: No Tax on Income Up to 12 Lakhs, Major Relief for Middle Class

In a landmark announcement, Finance Minister Nirmala Sitharaman revealed that no income tax will be levied on earnings up to ₹12 lakhs under the new Union Budget for 2025. This move comes as a significant relief for the middle class, marking a major policy shift.

Key highlights of the Budget include:

1. Tax Relief for Middle Class:
   • No income tax will be imposed on annual income up to ₹12 lakhs.
   • The TDS (Tax Deducted at Source) threshold has been raised to ₹10 lakhs.
   • The deadline for filing Income Tax Returns (ITR) has been extended.
2. Simplification of Tariffs:
   • The government has decided to eliminate 7 tariff rates, leaving only 8 applicable tariff rates.
   • The Social Welfare Surcharge is also being removed.
3. Cancer Treatment and Health Initiatives:
   • The government will eliminate import duties on 36 life-saving cancer medications, making them more affordable.
   • Custom duties on 6 essential life-saving drugs will be reduced to 5%.
   • Cancer care centers will be set up in government hospitals across the country.
4. Lower Prices for Electronics:
   • The prices of LED and LCD screens are expected to decrease.
   • Lithium-ion batteries, essential for EVs and mobile phones, will become more affordable.
5. Support for Entrepreneurs:
   • The government will provide loans worth ₹2 crore to women, Scheduled Castes (SC), and Scheduled Tribes (ST) entrepreneurs starting their businesses for the first time.
   • A new National Institute of Food Technology, Entrepreneurship & Management will be established in Bihar to boost regional development.
6. Key Announcements for Bihar:
   • Bihar will see the establishment of Greenfield airports to meet the state’s future transportation needs.
   • Expansion of Patna Airport’s capacity, along with the inclusion of the Mithilanchal region’s Western Canal Project.
7. Focus Areas for Development:
   • The government aims to accelerate growth through inclusive development, increased private sector investment, and boosting the spending power of India’s emerging middle class.
   • An additional budget of ₹10,000 crore has been allocated for startups to encourage innovation and entrepreneurship.

With these announcements, the 2025 Union Budget seeks to promote equitable growth, support emerging sectors like startups, and provide relief to the common citizen.