Let's Talk About The Budget
a detailed breakdown
Hey there,
It’s budget season, and if you’ve been wondering, “Will I pay less tax this year?” - you’re not alone!
Finance Minister Nirmala Sitharaman just dropped some major updates, and we’re here to break it all down for you (without the boring jargon).
From potential tax cuts to better insurance benefits, this year’s budget is all about putting more money in your pocket. But will it actually happen?
Read the full breakdown here 👇
Union Budget 2025: What’s changing in your taxes?
Finance Minister Nirmala Sitharaman just presented the Union Budget 2025, and this year’s budget is all about boosting the middle class’s spending power - meaning we might see some much-needed income tax relief.
Let’s break it down in simple terms.
What’s the big focus this year?
One of the most significant changes is in personal income tax.
The government has raised the tax exemption limit, meaning individuals earning up to ₹12 lakh annually won't have to pay any income tax.
This move is expected to boost household consumption and savings. Additionally, the standard deduction has been increased to ₹75,000 from the previous ₹50,000, providing further relief to taxpayers.
Here's a quick breakdown of the new tax slabs under the revised regime:
Up to ₹4 lakh: No tax
₹4 lakh to ₹8 lakh: 5%
₹8 lakh to ₹12 lakh: 10%
₹12 lakh to ₹16 lakh: 15%
₹16 lakh to ₹20 lakh: 20%
₹20 lakh to ₹24 lakh: 25%
Above ₹24 lakh: 30%
These adjustments aim to simplify the tax structure and make it more taxpayer-friendly.
Agriculture and Farmer Support
📌 A six-year mission has been launched to boost the production of pulses like tur, urad, and masoor, aiming to reduce dependence on imports.
📌 Additionally, the "Prime Minister Dhan-Dhaanya Krishi Yojana" will cover 100 districts, benefiting approximately 1.7 crore farmers.
📌 The government is also enhancing credit facilities, offering short-term loans of up to ₹5 lakh to farmers, fishermen, and dairy farmers through the Kisan Credit Card scheme.
Science, Innovation, and Infrastructure
📌 The government has allocated ₹20,000 crore to implement a private sector-driven initiative.
📌 The "PM Research Fellowship" will provide 10,000 fellowships for technological research in premier institutions like IITs and IISc.
Export Promotion and Trade Facilitation
📌 The budget proposes incentives for electronics and EVs, including duty exemptions for components like open cells for LED/LCD TVs and capital goods for lithium-ion batteries.
📌 There's also a push to promote Maintenance, Repair, and Overhaul (MRO) services by offering a 10-year exemption on goods for shipbuilding and ship-breaking.
Economic Outlook
While these initiatives are designed to stimulate growth, some analysts feel that the budget leans more towards short-term relief through tax cuts rather than implementing deep structural reforms needed for sustained economic expansion.
The government forecasts a GDP growth rate of 6.4% for the current fiscal year, a slight decrease from previous years.
In summary, the Union Budget 2025 introduces significant tax reliefs for the middle class, substantial support for agriculture, and investments in research and infrastructure.
So, that’s it for today. If you enjoyed this edition, subscribe to hear from us every day!
See ya 👋
