February 2, 2025

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Finance Minister Nirmala Sitharaman's Union Budget 2025 brings transformative tax changes to boost economic growth and ease taxpayer’s burden. Here is a quick recap.

1. No tax upto ₹12 lakh

Individuals earning up to ₹12 lakh annually will be fully exempt from income tax, giving a big relief to middle-class taxpayers.

2. Revised income tax slabs

The revised income tax slabs are: Upto ₹4 lakh - Nil, ₹4-8 lakh -5%, ₹8-12 lakh - 10%, ₹12-16 lakh - 15%, ₹16-20 lakh - 20%, ₹20-24 lakh - 25%, Above ₹24 lakh - 30%

3. Capital gains tax reform

Income from ULIPs with annual premiums exceeding ₹2.5 lakh will be taxed as capital gains. The amendment will be effective from April 1, 2026.

4. Tax incentives for startups

Startups incorporated before April 1, 2030, will now be eligible for tax benefits, with the incorporation period extended by five years.

5. TDS rationalisation

The annual TDS limit on rent has been raised from ₹2.40 lakh to ₹6 lakh.

6. Higher TDS threshold for senior citizens

The threshold for TDS deduction on interest on fixed deposits for senior citizens has been increased from ₹50,000 to ₹1,00,000.

Budget 2025: 10 key announcements

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