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By madhukar@etaxmentor.com madhukar@etaxmentor.com
BUDGET HIGHLIGHTS 2025
- Makhana Board to be established in Bihar. A Superfood loved by India and now the World!.
- Five year plan to boost Cotton productivity. A major boost for India’s textile industry.
- MSME Investment and Turnover Limits to be increased by 2.5X-A catalyst for growth credit guarantee for MSMEs to be enhanced from Rs. 5 crore to Rs. 10 crore
- Focused Product Scheme to be Launched for Footwear and Leather Industry in this BUDGET.
- New Scheme to Position India as a Global Hub for Toy Manufacturing.
- Government to Launch National Manufacturing Mission for small, medium and large Industries boosting ‘Make in India‘ and “Viksit Bharat”.
- IITs to add 6,500 more students; Expansion of Infrastructure and Hostels built Post-2014 in existing campuses.
- Program for Aatmanirbharata in Pulses Announced to boost Self-Sufficiency.
- Incentives Announced for Urban Sector Reforms
- Maritime Development Fund of Rs.25,000 Crore to be established; 49% Contribution from government rest from Ports and other Stakeholders.
- Modified UDAAN Scheme to be Launched. Plan to add 4 Crore additional passengers over the next 10 years; Greenfield Airports to be Develope in Bihar.
- UDAAN 2.0 to Connect 120 Airports across India.
- FM Announces Rs. 1.2 Lakh Crore Urban Challenge Fund to Boost City Development.
- Top 50 Tourist Destinations to be Developed across the country.
- Medical tourism to get a boost with easier Visa Norms; Special focus on destinations linked to Buddhist temples as announced in the July Budget.
- Geo-Spatial Mission to be launched along with Geo-Spatial Data Initiatives.
- Deep tech funds of funds to be launched.
- Bharat Trade net to be Launched for International Trade; BG’s to align with Global Standards.
- ‘Heal in India‘ initiative to be promoted-FM.
- New Income Tax Bill to be introduced Next Week.
- Insurance Sector FDI Limit Increased from 74% to 100%, Provided the entire premium is INVESTED in India.
- FM: ‘Trust First, Scrutinize Later‘ approach to Governance.
- Fast-Track mergers and simplified processed to be introduced.
- Revamped KYC Registry Announced
- Medical Tourism in India to be established Under PPP Model.
- Investment Friendliness Index to be Launched in 2025.
- Customs Act to be Rationalized; Seven Tariffs Removed
- Budget 2025 reduces customs duty on TV panel components lowering manufacturing costs. This move is expected to make televisions cheaper by up to Rs.3000.
- End-Use Import period extended from 6 months to 1 Year; Importers Now Required to submit Quarterly Returns instead of Monthly Reports.
- New Income Tax Act to be simplified, reducing Both Chapters and word count by half.
- Self-Occupied property: Now Allowed for two houses without any Conditions
- Transfer pricing: New Scheme Introduced to align arm’s Length Price with Global Standards; 3-Year Block Period Implemented.
- Registration Period for Charitable Institutions Increased from 5 Years to 10 Years.
- ITR-U can now be Filed for any Assessment Year between 2 to 4 Years.
- TCS Return Filing Decriminalized, similar to TDS Compliance.
- Higher TDS to apply only in Non-PAN Cases.
- TCS on RBI’s LRS Threshold increased from Rs.7Lakh to Rs.10Lakh.
- TCS on Remittances for Education to be removed if loans is taken from educational Institutions.
- TDS threshold on rent Increased from Rs.2.4 Lakh to Rs.6 Lakh.
- Rationalization of TDS and TCS: Threshold Limits to be Increased; Senior Citizens’ Limit Doubled from Rs.50,000 to Rs. 1 Lakh.
- Personal Income Tax Reforms to focus on Middle Class, Encourage monetary Compliance, and Boost Employment and Investment.
- Tax incentives extended for companied Incorporated Until April 1, 2030.
- Personal Income Tax Reforms focused on the Middle Class: Nil Tax Slab Increased from Rs.2.5 Lakh to Rs.5 Lakh to Rs.7 Lakh; No Income Tax Up to Rs.12 Lakh from now onwards….. that is