Budget 2025-26 Highlights: Key Announcements and Major Changes

 


Budget Announcements

Sector
Announcement
Details/Comments
Income Tax
New income tax regime
- Income up to Rs 12 lakh: No tax
- Rs 8-12 lakh: 10%
- Rs 12-16 lakh: 15%
- Rs 16-20 lakh: 20%
- Rs 20-25 lakh: 25%
- Above Rs 25 lakh: 30%
 
TDS on rent
Annual limit raised from Rs 2.4 lakh to Rs 6 lakh
 
Tax deduction for senior citizens
Limit doubled to Rs 1 lakh
 
Tax for salaried taxpayers
No income tax payable for income up to Rs 12.75 lakh
 
Tax on income up to Rs 4 lakh
Set at 0% under the new regime
Start-ups
Benefits continuation
Benefits for start-ups will continue for five years from inception
Banking/Insurance
Grameen credit score framework
To be established for rural India
 
FDI in insurance sector
Limit raised to 100%
Housing
Housing fund
Allocation of Rs 15,000 crore for the completion of one lakh housing units
Agriculture
Atmanirbharta in oil seeds
Six-year mission launched
 
Cotton yield improvement
Five-year mission initiated
 
Kisan Credit Card
Loan limit increased from Rs 3 lakh to Rs 5 lakh
Education
Atal Tinkering Labs
To be established in schools
 
Broadband internet
Provision for government secondary schools
 
IIT infrastructure
Additional infrastructure to increase student capacity; IIT Patna to be expanded
Healthcare
Daycare cancer centres
To be set up in all district hospitals; 200 centres planned by fiscal 2026
 
Duty on life-saving drugs
Six life-saving drugs to have a 5% duty; 36 drugs exempted from basic customs duty
Growth
MSME credit guarantees
Coverage raised from Rs 5 crore to Rs 10 crore
Infrastructure
PPP mode projects
Three-year projects can be implemented in PPP mode
 
Interest-free loans
Rs 1.5 lakh crore allocated for states to implement infrastructure reforms
 
Regional airports
Over 100 new regional airports planned over the next decade
 
UDAN 2.0
To connect 120 new airports, with a focus on Northeast and Bihar
Excise/Customs Duty
Export promotion mission
Set up for easier access to export credit
 
Tariff rates
Proposal to remove seven tariff rates, leaving eight remaining
Economy
Investment-friendly index
To promote competition among states
 
Fiscal deficit
Revised fiscal deficit target set at 4.8% for fiscal year 2025
 
Capital expenditure
Set at Rs 10.18 lakh crore
Women's Development
Term loan for women entrepreneurs
Up to Rs 2 crore available for first-time entrepreneurs from SC/ST and backward classes
Rural India
Nutritional support
For over eight crore children and one crore lactating mothers
Make in India
National Manufacturing Mission
Provides policy support and monitoring framework
 
Clean technology manufacturing mission
New initiative launched
 
Nuclear Energy Mission
Focused on research and development
Water Management
Jal Jeevan Mission
Extended until 2028
Technology
Centre of Excellence in AI
To be established with an allocation of Rs 500 crore
 
EV battery manufacturing
Additional capital goods for production
Tourism
Visa fee waivers
For certain tourist groups


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