Top 75 Key Highlights of Budget 2025 by Finance Minister Nirmala Sitharaman

01 Feb 2025, The Union Budget 2025 presented by Finance Minister Nirmala Sitharaman has introduced several groundbreaking reforms aimed at boosting the economy, empowering the middle class, and fostering growth across key sectors. From tax reliefs and MSME support to infrastructure investment and job creation, here are the top 75 highlights of this year’s budget:

The income tax reforms on individual income with special focus on middle class group. New tax structure will substancially reduce tax burden on middle class and leave more money in their pocket, thus increase household consumption and savings. A tax payer in the new tax regime upto the income of 12 lakh will get a benefit of Rupees 80000 in tax. For salaried employees, this limit will be upto Rupees 12.75 lakh after considering standard deduction of Rupees75000.

Income Bracket	Tax Percentage
0-4 Lakh Rupees	NIL TAX
4-8 Lakh Rupees	5%
8-12 Lakh Rupees	10%
12-16 Lakh Rupees	15%
16-20 Lakh Rupees	20%
20-24 Lakh Rupees	25%
Above 24 Lakh Rupees	30%

📢 Major Tax Reforms & Relief for Taxpayers in Budget 2025

1. No Income Tax on earnings up to ₹12 lakh – A major relief for middle-class taxpayers with a revised tax slab structure.
2. Introduction of a new Income Tax Bill next week to simplify tax compliance and bring efficiency.
3. The new tax law will be half the size of the current tax structure in terms of chapters and word count.
4. Revised TDS (Tax Deducted at Source) norms:
   • Senior citizens: TDS on interest earnings above ₹1 lakh.
   • Rental income: TDS applicable for rental earnings exceeding ₹6 lakh.
5. Income tax returns can now be filed for the last four years under the updated ITR-U filing system.
6. Rationalization of TDS and TCS (Tax Collected at Source) to ease compliance and reduce complexity.
7. TCS on sales transactions removed to simplify tax procedures.
8. Threshold for TCS on international remittances (LRS) increased from ₹7 lakh to ₹10 lakh.
9. TDS exemption on education loans up to ₹10 lakh when availed from recognized financial institutions.
10. Taxpayers can now claim tax exemption on withdrawals from the National Savings Scheme (NSS).
11. Tax exemption on the annual value of two self-occupied properties without additional conditions.
12. New transfer pricing scheme: Arm’s length pricing for international transactions to be fixed for a block of three years.

📈 Economic Growth & MSME Support

13. Investment limits for MSME classification increased 2.5 times, with turnover limits doubled.
14. Credit Guarantee Scheme for MSMEs and Startups expanded to improve financial accessibility.
15. New “Fund of Funds” for Startups with an additional ₹10,000 crore contribution by the government.
16. ₹20,000 crore allocated for private-sector-driven Research, Development & Innovation.
17. Dedicated scheme for first-time women, SC/ST entrepreneurs, benefiting 5 lakh individuals.

🚜 Agriculture & Rural Development

18. Kisan Credit Card (KCC) loan limit increased from ₹3 lakh to ₹5 lakh to empower farmers.
19. Dhan Dhanya Krishi Yojana launched to benefit 1.7 crore farmers across 100 districts.
20. A 5-year mission announced to boost cotton production.
21. Self-help groups (SHGs) to receive rural credit scores to enhance financial support and loan access.
22. Expansion of the Jal Jeevan Mission: Over 15 crore households now have access to tap water.

🏗️ Infrastructure & Urban Development in Budget 2025

23. ₹1 lakh crore Urban Challenge Fund introduced to transform cities into growth hubs.
24. 25% of urban projects to be funded by the government, the rest via PPP and bank loans.
25. Modified UDAN scheme to connect 120 new destinations over the next 10 years.
26. Expansion of PPP (Public-Private Partnership) mode for infrastructure projects with a ₹1.5 lakh crore outlay.
27. Western Kosi Canal Project to be developed in Bihar’s Mithilanchal region.

🎓 Education, Skilling & Employment

28. Expansion of IITs: 75,000 additional seats to be created in the next five years.
29. National Centres for AI in Education to be established with a ₹500 crore allocation.
30. 50,000 Atal Tinkering Labs (ATLs) to be set up in schools to foster scientific innovation.
31. 75,000 medical seats to be added in the next five years to strengthen healthcare education.
32. 10,000 fellowships under the PM Research Fellowship Scheme for research in IITs and IISc.
33. Five National Centres of Excellence for Skilling to be set up for global workforce training.

👨‍⚕️ Healthcare & Nutrition

34. Cancer hospitals to be established in every district to improve cancer treatment accessibility.
35. Saksham Anganwadi and Poshan 2.0: Nutritional support for 8 crore children, 1 crore mothers, and 20 lakh adolescent girls.
36. Medical tourism and “Heal in India” initiative to promote India’s healthcare sector globally.

🧵 Manufacturing, Exports & Industrial Growth

37. Dedicated schemes for the Footwear & Leather Industry, creating 22 lakh jobs and boosting exports to ₹1.1 lakh crore.
38. India to become a global toys manufacturing hub with targeted policy interventions.
39. Scheme for MSMEs in Footwear, Leather & Toy Sectors, with a revenue potential of ₹4 lakh crore.
40. Fast-track company mergers to ease business expansion.

🚆 Transport, Power & Energy Sector

41. 100 GW nuclear energy capacity target by 2047 for a greener future.
42. Investment in clean energy transition, solar & wind projects.
43. Expansion of broadband connectivity in rural and urban areas.

🌍 Global Trade & Investments proposed in Budget 2025

44. New Model Bilateral Investment Treaty to attract foreign investments.
45. Insurance FDI increased from 74% to 100% for enhanced global participation.
46. Tariff simplification: Removal of 7 redundant tariff rates, leaving only 8 in effect.

🛡️ Governance, Policies & Digital Initiatives

47. Jan Vishwas 2.0 Bill introduced, decriminalizing 100+ legal provisions to improve ease of doing business.
48. Centralized KYC system for seamless financial transactions.
49. New compliance rules to reduce the burden on small charitable institutions, extending their registration validity from 5 years to 10 years.

🏡 Rural & Urban Development

50. Jal Jeevan Mission extended till 2028 – Launched in 2019, the scheme has provided 100% tap water connections to households across India.
51. ₹1 lakh crore Urban Challenge Fund to drive urban transformation, enhance water and sanitation infrastructure, and develop smart cities.
52. Support for Global Capability Centres (GCCs) – A national guidance framework will help states attract global corporations and create high-skilled jobs.

📊 Financial & Banking Reforms Proposed in Budget 2025

53. A Centralized KYC (Know Your Customer) system will be launched to streamline banking and financial transactions.
54. Jan Vishwas 2.0 Bill introduced, decriminalizing over 100 legal provisions across various laws to enhance ease of doing business.
55. Rural credit score system to be introduced for self-help groups, improving their access to formal credit.
56. Government to draft a new Bilateral Investment Treaty to encourage foreign investments and safeguard investor interests.
57. Insurance sector liberalization – Foreign Direct Investment (FDI) cap increased from 74% to 100% for better capital inflows.
58. Total estimated government receipts (excluding borrowings) set at ₹31.47 lakh crore, of which net tax revenue stands at ₹25.57 lakh crore.

🚜 Agriculture & Food Security

59. 100 districts identified for agricultural productivity enhancement – Focus on low-yield regions with moderate crop intensity.
60. 10,000 research fellowships under PM Research Fellowship will be awarded in the next five years, focusing on agriculture and food technology.
61. ₹20,000 crore allocated for private-sector-driven R&D in agriculture to develop climate-resilient and high-yield crop varieties.
62. National Geospatial Mission to be launched – It will develop a foundational geospatial infrastructure and data system for land reforms and agriculture planning.
63. India emerges as the 2nd largest fish producer globally – With seafood exports worth ₹60,000 crore, the government will introduce a new framework to promote sustainable fishing in Andaman, Nicobar, and Lakshadweep islands.

🏗️ Manufacturing & Industrial Growth

64. Fast-track merger approvals for businesses – The process will be streamlined to encourage corporate expansion and foreign investment.
65. Tariff simplification – The government has removed 7 redundant tariff rates, leaving only 8 tax slabs for trade and imports.
66. Fiscal deficit projected at 4.4% of GDP, reflecting a balanced approach to growth and financial stability.

💳 Taxation & Compliance

67. Threshold limit for Tax Collected at Source (TCS) on Liberalized Remittance Scheme (LRS) increased from ₹7 lakh to ₹10 lakh.
68. TDS threshold on rental income raised to ₹6 lakh, reducing compliance burden on property owners.
69. TCS exemption introduced for education loans up to ₹10 lakh, easing financial pressure on students and parents.
70. New Income Tax Bill to retain only 50% of the existing provisions while introducing simplified personal tax reforms and rationalizing TDS/TCS rates.
71. TCS on sales transactions abolished to simplify business compliance and improve cash flow for traders.

🌍 Global Trade & Economic Expansion

72. New policy for transfer pricing – The government will introduce a 3-year fixed pricing framework for international transactions, reducing yearly scrutiny and tax disputes.
73. Tax exemption on withdrawals from the National Savings Scheme (NSS) for individuals retiring after August 29, 2024.
74. Compliance burden for small charitable trusts reduced – Registration validity extended from 5 years to 10 years to simplify documentation.
75. Homeowners can now claim the annual value of two self-occupied properties as nil, eliminating previous conditions and benefiting middle-class taxpayers.

Final Thoughts

Budget 2025 stands as a progressive and inclusive roadmap for India’s economic development. Tax reforms, MSME incentives, infrastructure investments, and digital advancements showcase the government’s commitment to sustainable growth. Middle-class taxpayers, entrepreneurs, and businesses will significantly benefit from the new policies, making this budget a game-changer for India’s financial landscape.