Budget 2025: Frequently Asked Questions (FAQs)
General Questions on Budget 2025
1. What is the Union Budget 2025?
The Union Budget 2025 is the financial plan presented by Finance Minister Nirmala Sitharaman on February 1, 2025, outlining government expenditures, tax reforms, and economic policies for the fiscal year 2025-26.
2. What are the key highlights of Budget 2025?
- Zero tax for individuals earning up to ₹12 lakh.
- Revised income tax slabs with lower rates.
- ₹75,000 standard deduction for salaried individuals.
- NPS Vatsalya scheme introduced with ₹50,000 additional tax benefit.
- Increase in TDS threshold on rental income from ₹2.4 lakh to ₹6 lakh.
3. How will Budget 2025 impact the common man?
The new budget reduces the tax burden on the middle class, leading to higher disposable income, increased savings, and better investment opportunities.
Income Tax-Related FAQs
4. What are the new income tax slabs for FY 2025-26 (AY 2026-27)?
| Annual Income (₹) | Tax Rate |
|---|---|
| 0 - 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% |
5. Is there any tax rebate for individuals earning up to ₹12 lakh?
Yes, individuals earning up to ₹12 lakh pay zero tax due to the ₹75,000 standard deduction under the new tax regime.
6. How much tax will I pay if I earn ₹15 lakh per year?
For ₹15 lakh income:
- ₹12 lakh = No tax
- ₹12-16 lakh = 15% on ₹3 lakh = ₹45,000
- Total tax payable = ₹1,05,000
7. Should I choose the old tax regime or the new tax regime?
- If you have significant tax-saving investments (like 80C, HRA, LTA), the old tax regime may be beneficial.
- If you prefer lower tax rates and higher take-home pay, the new tax regime is better.
8. What is the standard deduction in Budget 2025?
The standard deduction has been increased to ₹75,000 for salaried individuals and pensioners under the new tax regime.
TDS & Rental Income FAQs
9. What is the new TDS exemption limit on rental income?
The TDS threshold for rental income has been raised from ₹2.4 lakh to ₹6 lakh, reducing tax deduction burdens on landlords and tenants.
10. Do I need to pay tax if I earn rental income below ₹6 lakh per year?
No, rental income below ₹6 lakh per year is now exempt from TDS under the new rules.
NPS & Savings FAQs
11. What is the NPS Vatsalya scheme?
The NPS Vatsalya is a new pension scheme for minors, offering an additional ₹50,000 tax exemption under the old tax regime.
12. Can I claim both standard deduction and NPS Vatsalya exemption?
Yes, under the old tax regime, you can claim both the ₹75,000 standard deduction and the ₹50,000 NPS Vatsalya exemption.
13. How does Budget 2025 encourage savings and investments?
- Tax-free income up to ₹12 lakh increases disposable income.
- Lower tax rates encourage higher investments in mutual funds and stock markets.
- New savings incentives through pension schemes like NPS Vatsalya.
Impact on Businesses & MSMEs
14. How does Budget 2025 benefit small businesses and MSMEs?
- Lower tax compliance due to higher TDS thresholds.
- Import duty reductions on essential goods.
- Incentives for digital payments and start-ups.
15. Are there any tax exemptions for start-ups in Budget 2025?
Yes, start-ups registered under the government’s incentive program may receive tax holidays and lower corporate tax rates.
Stock Market & Economy FAQs
16. How did the stock market react to Budget 2025?
Nifty and Sensex showed stability, with positive growth in FMCG, real estate, and automobile sectors due to increased consumer spending.
17. How will Budget 2025 impact the Indian economy?
- Higher disposable income = Increased demand for goods and services.
- Encourages investments in infrastructure, stock markets, and mutual funds.
- Boosts manufacturing and MSME sector growth.
Miscellaneous FAQs
18. Is Budget 2025 good for salaried individuals?
Yes, the budget significantly reduces tax burdens for salaried individuals by increasing the tax-free income limit and standard deductions.
19. Can senior citizens benefit from the new tax regime?
Yes, senior citizens can take advantage of lower tax rates and the ₹75,000 standard deduction under the new tax regime.
20. Where can I file my taxes under the new regime?
You can file your income tax returns on the official Income Tax e-filing portal (www.incometax.gov.in).
Additional FAQs on Budget 2025
GST & Indirect Taxes
21. Has there been any change in GST rates?
- No major changes have been announced in GST slabs, but procedural simplifications for MSMEs and startups have been introduced.
22. Are there any GST benefits for small businesses?
- Businesses with annual turnover up to ₹2 crore are now exempt from GST filing. Additionally, compliance procedures have been eased for firms with turnover between ₹2-5 crore.
23. Have customs duties been reduced on any products?
- Yes, import duties on electronics, EV components, and medical devices have been reduced to boost local manufacturing.
Subsidies & Welfare Schemes
24. What are the major subsidies announced in Budget 2025?
- Fuel Subsidy: ₹200 per LPG cylinder subsidy extended for Ujjwala beneficiaries.
- Fertilizer Subsidy: Increased allocation to support farmers.
- Electric Vehicle (EV) Incentives: More subsidies for EV buyers under FAME III scheme.
25. Has the government introduced any new welfare schemes?
- Ayushman Plus Scheme: Expanded health coverage for middle-income groups.
- PM Kisan Expansion: Increased annual payout to farmers from ₹6,000 to ₹8,000.
- Affordable Housing Scheme: Interest rate subsidy on home loans for first-time buyers.
Investments & Capital Markets
26. Are there any tax benefits for stock market investors?
- Long-Term Capital Gains (LTCG) exemption limit raised from ₹1 lakh to ₹2 lakh per year.
27. Has the government announced any new sovereign bonds or investment schemes?
- Yes, Infrastructure Sovereign Bonds with 7.5% interest have been introduced to attract retail investors.
28. Will mutual funds see any tax changes?
- Equity Linked Savings Schemes (ELSS) now offer an additional ₹50,000 tax deduction under 80C.
Digital Payments & FinTech
29. What are the new incentives for digital payments?
- 0% MDR (Merchant Discount Rate) on UPI transactions for small merchants (turnover below ₹1 crore).
- Cashback incentives for rural digital transactions.
30. Has crypto taxation changed in Budget 2025?
- No major changes, but discussions are ongoing for potential tax rationalization in future budgets.
Housing & Real Estate
31. Is there any tax benefit for homebuyers?
- First-time homebuyers can now claim up to ₹2 lakh additional deduction on home loan interest under Section 80EE.
32. Has there been any change in capital gains tax on property sales?
- Holding period for LTCG tax on real estate reduced from 24 months to 12 months, making selling properties more tax-efficient.
Corporate & Business Taxation
33. What are the corporate tax rates for FY 2025-26?
- Small businesses (turnover < ₹50 crore): 15%
- Large corporations: 22%
- New manufacturing firms (incorporated after 2019): 15%
34. Are there any new tax incentives for startups?
- 3-year tax holiday extended for eligible startups under the Startup India initiative.
35. Has the government introduced any AI or tech-related incentives?
- ₹10,000 crore AI Innovation Fund launched to support startups in artificial intelligence, blockchain, and cybersecurity.
Agriculture & Rural Development
36. What benefits are given to farmers in Budget 2025?
- Interest-free loans for small farmers up to ₹3 lakh.
- Increased Minimum Support Prices (MSP) for key crops.
37. Has rural employment been addressed?
- MGNREGA allocation increased by ₹25,000 crore to support job creation in rural areas.
Education & Skill Development
38. What are the key education-related initiatives?
- 50% scholarship on online courses for students in Tier-2 & Tier-3 cities.
- New AI & Robotics Research Grants for universities.
39. Has the government allocated funds for youth skill development?
- ₹7,000 crore for Skill India 2.0 to enhance digital and vocational training.
Health & Medical Benefits
40. Are there any changes in health insurance tax deductions?
- Tax deduction under Section 80D increased from ₹50,000 to ₹75,000 for senior citizens.
41. Has Ayushman Bharat coverage been expanded?
- Yes, families earning up to ₹8 lakh annually are now covered under the scheme.
Environmental & Green Initiatives
42. What green initiatives were announced in Budget 2025?
- ₹20,000 crore for solar rooftop installations to encourage renewable energy adoption.
- Tax rebates on EVs extended till 2030.
43. Are there incentives for green energy adoption?
- 100% tax exemption for 10 years on green hydrogen and solar manufacturing projects.
Miscellaneous FAQs
44. How does Budget 2025 address inflation?
- Food and fuel subsidies maintained to keep inflation under control.
- Import duty cuts on essentials to reduce price pressures.
45. What is the expected GDP growth rate for FY 2025-26?
- The government has set a target of 6.8%-7.2% GDP growth.
46. Has there been any relief in loan interest rates?
- Interest subsidies for MSME and student loans have been introduced, reducing borrowing costs.
47. What changes have been made for NRIs?
- NRI investment cap in Indian markets increased to encourage remittances and investments.
48. How can I check Budget 2025 details online?
- Full details are available on the official Finance Ministry website and government portals.
Final Thoughts
Budget 2025 brings significant relief to taxpayers, businesses, and investors. The revised tax slabs, incentives for digital payments, subsidies on EVs, and initiatives for startups make this budget a pro-growth and middle-class-friendly financial roadmap for the upcoming fiscal year.
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