Union Budget 2025: Zero Tax Up to ₹12 Lakh Announced by Nirmala Sitharaman

Budget 2025: Major Tax Relief for Middle Class, No Tax Up to ₹12 Lakh

In a groundbreaking move aimed at empowering the middle class, Finance Minister Nirmala Sitharaman announced on Saturday that individuals earning up to ₹12 lakh annually will pay zero income tax under the revised new tax regime. This announcement, a major highlight of Union Budget 2025, marks a pivotal shift towards a more inclusive and growth-driven economy. Sitharaman also confirmed that a new and simplified income tax bill will be introduced next week, further streamlining the taxation process.

PM Modi Calls Union Budget 2025 a ‘Force Multiplier’

Following Sitharaman’s budget address, Prime Minister Narendra Modi lauded the Union Budget 2025, calling it a “force multiplier” for India’s development. He described it as a “budget of aspirations” aimed at fulfilling the dreams of 140 crore Indians. PM Modi emphasized that the budget prioritizes people over government revenue, with a strong focus on increasing savings, boosting investments, and driving economic growth.

Key Announcements in Union Budget 2025

1. Income Tax Relief for the Middle Class

For years, the middle class has sought relief from heavy tax burdens, and Budget 2025 finally delivers. Under the revised tax regime, no income tax will be levied on earnings up to ₹12 lakh, a move expected to increase disposable income and stimulate economic activity.

2. Support for MSMEs and Entrepreneurs

A new classification system for Micro, Small, and Medium Enterprises (MSMEs) will be introduced to streamline benefits and foster growth. Additionally, a dedicated scheme will provide term loans of up to ₹2 crore to 5 lakh first-time entrepreneurs, with special provisions for women, Scheduled Castes (SC), and Scheduled Tribes (ST).

3. Expansion of the ‘Udaan’ Scheme

The government plans to modify the ‘Udaan’ scheme to improve regional connectivity by introducing 120 new destinations. Over the next decade, the scheme aims to facilitate travel for four crore passengers while supporting helipads and smaller airports in remote areas, particularly in hilly and northeastern regions.

4. Medical Education Boost: 75,000 New Seats

To strengthen the healthcare sector, the government will add 75,000 new medical seats over the next five years. This move is aimed at addressing the shortage of healthcare professionals and enhancing India’s medical infrastructure.

5. Greenfield Airports in Bihar

The Union Budget 2025 includes plans for new greenfield airports in Bihar to cater to the state’s growing aviation demands. Additionally, the expansion of Patna airport and the development of a brownfield airport in Bihta will further improve connectivity.

6. Self-Reliance in Pulses Production

The government is launching a six-year mission to achieve ‘Aatmanirbharta’ (self-reliance) in pulses, with a focus on tur, urad, and masoor varieties. This initiative includes climate-resilient seeds, enhanced protein content, and increased productivity to reduce import dependency.

Economists Praise Budget 2025 as ‘Fiscal Wizardry’

Economists and financial analysts have hailed Sitharaman’s budget as a “need of the hour,” citing its balanced approach to economic growth, tax relief, and infrastructure development. Many experts believe that the tax reforms and targeted investments will drive consumption and elevate India’s global economic standing.

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