Today, the Finance Minister presented the Union Budget 2025-26, outlining the government’s plans for economic growth, investment, and fiscal management.
Yes, some big announcements for the middle class with lower income tax, support for MSMEs and domestic manufacturing, and measures for infrastructure, farmers, and new technologies.
Here are the key highlights. 
Taxation & Income
- No income tax on an average monthly income of up to ₹1 lakh.
- Salaried individuals earning up to ₹12.75 lakh per annum to pay nil tax under the new tax regime.
- Tax Deducted at Source (TDS) threshold on rent increased from ₹2.4 lakh to ₹6 lakh.
- Updated Income Tax Return (ITR) filing time limit extended from two to four years.
- Delay in Tax Collected at Source (TCS) payment decriminalized.
- Revised personal tax slabs with a maximum rate of 30% for income above ₹24 lakh.
Economic & Fiscal Measures
- Financial Year (FY) 2024-25 fiscal deficit is estimated at 4.8%, with a target of 4.4% in FY 2025-26.
- Investment and turnover limits for Micro, Small & Medium Enterprises (MSMEs) enhanced by 2.5x and 2x, respectively.
- ₹1 lakh crore Urban Challenge Fund announced for city development.
- ₹1.5 lakh crore interest-free loans to states for capital expenditure.
- Second Asset Monetization Plan (2025-30) to mobilize ₹10 lakh crore.
Agriculture & Rural Development
- Prime Minister (PM) Dhan-Dhaanya Krishi Yojana to support 100 low-agricultural productivity districts.
- Mission for Aatmanirbharta (Self-reliance) in Pulses launched with a focus on Tur (Pigeon Pea), Urad (Black Gram), and Masoor (Red Lentil).
- Kisan Credit Card (KCC) loan limit increased to ₹5 lakh.
- Comprehensive program for vegetable and fruit cultivation, high-yielding seeds, and cotton productivity.
Industry & Manufacturing
- Credit guarantee cover for MSMEs raised from ₹5 crore to ₹10 crore.
- National Manufacturing Mission to promote small, medium, and large-scale industries.
- Basic Customs Duty (BCD) exemptions for capital goods in Electric Vehicle (EV) and mobile battery manufacturing.
- 10-year BCD exemption on shipbuilding raw materials.
Technology & Innovation
- ₹20,000 crore allocated for private-sector-led Research & Development (R&D) initiatives.
- National Geospatial Mission for urban planning and infrastructure.
- Centre of Excellence in Artificial Intelligence (AI) for Education with a ₹500 crore outlay.
Infrastructure & Connectivity
- Modified UDAN (Ude Desh Ka Aam Nagrik) Scheme to improve regional connectivity to 120 new destinations.
- ₹15,000 crore Special Window for Affordable & Mid-Income Housing (SWAMIH) Fund for completing 1 lakh stressed housing units.
Social Welfare & Employment
- Identity cards, e-Shram registration, and healthcare benefits for gig workers under Pradhan Mantri Jan Arogya Yojana (PMJAY).
- ₹30,000 Unified Payments Interface (UPI)-linked credit card limit for PM SVANidhi (Street Vendor’s AtmaNirbhar Nidhi) beneficiaries.
- 50,000 Atal Tinkering Labs (ATLs) to be set up in government schools over five years.
Trade & Exports
- Export Promotion Mission to boost MSME exports.
- BharatTradeNet (BTN) is proposed as a unified digital platform for trade documentation and financing.
- Infrastructure and warehousing upgrades for air cargo and perishable goods.
Regulatory & Financial Sector Reforms
- Foreign Direct Investment (FDI) limit in insurance increased from 74% to 100%.
- Jan Vishwas Bill 2.0 to decriminalize over 100 legal provisions.
- Investment Friendliness Index of States to promote competitive federalism.
Customs & Import Duties
- Basic Customs Duty (BCD) exemptions on 36 lifesaving drugs for cancer, rare, and chronic diseases.
- BCD on Interactive Flat Panel Display (IFPD) increased to 20%, while Open Cells reduced to 5%.
- BCD on frozen fish paste reduced from 30% to 5%; BCD on fish hydrolysate reduced from 15% to 5%.