Amid soaring hopes for income tax relief, Finance Minister Nirmala Sitharaman, while unveiling the Union Budget 2025, declared that she will bring forth a new income tax bill next week. The announcement has sparked optimism among taxpayers, with expectations of simpler tax structures and reduced financial burden.
Budget 2025 LIVE: While presenting the Union Budget 2025 in Parliament, Finance Minister Nirmala Sitharaman announced a series of measures targeting key sectors like agriculture and MSMEs. However, she stated that the new and “simpler” income tax bill will be introduced next week. This marks her record eighth Union Budget presentation, making her the only finance minister to deliver eight consecutive budgets. As she delivers the first full budget of Prime Minister Narendra Modi’s third-term government, there are high expectations for tax relief.
Union Budget 2025 | Key Highlights
- Major Announcements: Finance Minister Nirmala Sitharaman introduced key measures, including new classification criteria for MSMEs, a revamped ‘Udaan’ scheme, a dedicated initiative for the footwear and leather sectors, and the addition of 75,000 medical seats over the next five years.
- New Income Tax Bill: Amid high expectations, Sitharaman announced that a new and “simpler” income tax bill will be introduced next week.
- Budget Presentation Timing: The Union Budget 2025-26 presentation began at 11 AM, with Sitharaman outlining key economic policies and reforms.
- Trending Discussions on X: Terms like #IncomeTax and #Budget2025 trended on X as taxpayers eagerly awaited potential tax relief measures.
- Sitharaman’s Record 8th Budget: This marks Nirmala Sitharaman’s eighth consecutive budget presentation, making her the first finance minister to achieve this milestone, though she does not hold the record for the most budget presentations overall.
- Budget Session in Two Phases: The Budget Session 2025 commenced on January 31 with President Droupadi Murmu’s address. It will be conducted in two phases—Phase 1 from January 31 to February 13, and Phase 2 from March 10 to April 4.
- Possible Income Tax Relief: Speculation is high that the government may raise income tax slabs and enhance the standard deduction to support middle-class taxpayers, given repeated references to their concerns by PM Modi and President Murmu in recent speeches.
- Stock Market Reaction: Ahead of the budget announcement, the stock market opened flat on Saturday, with a special trading session being held in light of the budget presentation.
Budget 2025 LIVE: Nirmala Sitharaman Highlights Key Focus Areas of Tax Proposals
Finance Minister Nirmala Sitharaman outlined the primary focus areas of her tax proposals in Budget 2025, emphasizing reforms aimed at benefiting individuals and businesses. The key areas include:
- Personal Income Tax Reforms: Special emphasis on providing relief to the middle class.
- TDS and TCS Rationalization: Streamlining tax deduction and collection at source.
- Reducing Compliance Burden: Simplifying tax filing processes for taxpayers.
- Enhancing Ease of Doing Business: Creating a more business-friendly tax environment.
- Boosting Employment and Investment: Implementing tax measures to drive job creation and economic growth.
Budget 2025 LIVE: New Income Tax Bill to Be Simple and Transparent, Says FM Sitharaman
While presenting the Union Budget 2025, Finance Minister Nirmala Sitharaman addressed direct tax proposals, stating, “I am happy to inform that for the new income tax, we will carry forward the spirit of ‘nyay’. The new bill will be clear and direct in text, making it simple for taxpayers to understand and leading to reduced litigation.”
Budget 2025 LIVE: 9 Items Added to Duty-Free Category
Sitharaman also announced that nine new items have been added to the duty-free sector. Additionally, 36 life-saving drugs have been made duty-free to improve accessibility and affordability.
In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced significant changes to customs duties to promote accessibility to essential goods and support various industries.
Duty-Free Additions:
- Life-Saving Drugs: A total of 36 life-saving drugs, including essential medicines used to treat cancer and rare diseases, have been fully exempted from Basic Customs Duty (BCD).
- Critical Minerals and Components: The government has proposed to fully exempt cobalt products, LEDs, zinc, lithium-ion battery scrap, and 12 critical minerals from BCD.
- Raw Materials for Ship Manufacturing: The exemption of BCD on raw materials and components used in ship manufacturing has been extended for another 10 years.
- Fish Pasteurii: The BCD on fish pasteurii has been reduced from 30% to 5%.
These measures aim to make essential medicines more affordable, support the growth of key industries, and reduce the overall cost burden on consumers and manufacturers.
Budget 2025 LIVE: Key Announcements by FM Nirmala Sitharaman
- New Income Tax Bill Coming Next Week:
FM Nirmala Sitharaman stated, “I propose to introduce the new income tax bill next week.” - ₹20,000 Crore Fund for Innovation:
The government will allocate ₹20,000 crore to promote innovation in collaboration with the private sector, boosting research and technological advancements. - Greenfield Airports for Bihar & Expansion of ‘Udaan’ Scheme:
FM Sitharaman announced the development of greenfield airports in Bihar to address the state’s future aviation needs. Additionally, a modified ‘Udaan’ scheme aims to carry four crore additional passengers over the next decade, with support for helipads and smaller airports in hilly, aspirational, and northeastern districts.
Following this announcement, the Opposition began sloganeering in Parliament.