Budget 2025 And Its Impact -Key Features Discussed

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, has significant implications for employees in India, particularly in terms of income tax relief, disposable income enhancement and job creation. Some of the key features can be summarised as under:

TAX RELIEF MEASURES

Income Tax Changes:

• Tax-Free Income Threshold: The Budget raises the income tax exemption limit to Rs. 1,200,000, (i.e. average income of Rs 1 lakh per month other than special rate income such as capital gains) effectively making it tax-free under new tax regime for individuals earning up to this amount. For salaried employees, with the inclusion of a standard deduction of Rs. 75,000, the taxable income threshold rises to Rs. 1,275,000 (~$14,800).