Union Budget 2025 key initiatives to support economic growth
The Union Budget 2025 has introduced several key initiatives to support economic growth, provide relief to taxpayers, and drive development across various sectors. This budget aims to increase accessibility to financial services, foster innovation, and boost infrastructure. The middle-class tax relief and support for farmers through Kisan Credit Cards are particularly noteworthy. The focus on infrastructure, medical education, and AI is expected to drive long-term growth, while initiatives like the revamped KYC Registry and FDI increase in insurance further enhance India’s attractiveness as an investment destination. Here’s a breakdown of the highlights:
General Highlights:
- Kisan Credit Card limit increased from ₹3 lakh to ₹5 lakh, benefiting farmers.
- Infrastructure development in 5 IITs set up post-2014, including expansion of IIT Patna.
- 10,000 additional seats in medical colleges next year, with a total of 75,000 seats added over 5 years.
- ₹500 Cr. allocation for AI research and development, emphasizing Centre for Excellence in AI.
- Introduction of social welfare schemes for GIG workers, providing much-needed support.
- Extension of Jal Jeevan Mission till 2028 to ensure water supply to rural areas.
- Establishment of an Urban Challenge Fund with ₹1 lakh crore for urban development.
- Greenfield airports to be facilitated in Bihar, in addition to Patna Airport.
- INR 20,000 Cr. for Private Sector R&D, encouraging innovation.
- Top 50 tourist destinations to be developed, with a focus on Buddha-linked sites.
- Promotion of ‘Heal in India’ to attract global medical tourism.
- FDI limit for Insurance raised to 100% if the entire premium is invested in India.
- Introduction of a revamped KYC Registry for simplified verification.
- Rationalization of customs tariff to streamline imports and exports.
- Duty exemptions on 36 life-saving drugs, and a 5% duty on 6 others to ensure affordability.
Direct and indirect tax highlights:
The document outlines Personal Income-tax reforms with a special focus on the middle class in the Union Budget 2025. Here are the key highlights:
- New Income Tax Bill to be introduced next week, aiming to simplify the current system.
- Personal Income Tax reforms targeting the middle class, providing significant relief.
- Zero Income Tax up to ₹12 lakh income, a major boost to the salaried class.
- Changes in tax slabs to provide broader relief.
- TDS and TCS rationalized, making tax compliance simpler.
- The TDS limit on rent increased from ₹2.4 lakh to ₹6 lakh.
- TDS limit for senior citizens enhanced from ₹50,000 to ₹1 lakh.
- TCS removed on remittances for education purposes, easing the burden on students and families.
- The time limit for ‘Updated Return’ has been extended to 4 years, up from the current 2 years, offering more flexibility to taxpayers.
New Tax Regime – 2025
- Nil tax up to ₹12 lakh income
- Standard deduction of ₹75,000 for salaried individuals
- New income tax slabs under Section 115BAC (1A):
| Total Income (₹ Lakhs) | Tax Rate (%) |
| 0 – 4 | 0% |
| 4 – 8 | 5% |
| 8 – 12 | 10% |
| 12 – 16 | 15% |
| 16 – 20 | 20% |
| 20 – 24 | 25% |
| Above 24 | 30% |
Tax Benefits for Middle Class
- Nil tax liability up to ₹12 lakh, saving ₹80,000 in taxes
- Revised tax slabs provide relief across all income levels
- Marginal relief available for income slightly exceeding ₹12 lakh
Other Key Announcements
- TDS on Rent: Exemption limit raised from ₹2.4 lakh to ₹6 lakh
- Senior Citizens: TDS exemption limit increased from ₹50,000 to ₹1 lakh
- Updated Return: Time limit extended to 4 years
- TCS on Education Remittance: Removed
- Standard Deduction: ₹75,000 for salaried individuals under the new tax regime
- New Income Tax Bill to be introduced
This budget significantly reduces the tax burden for the middle class, putting more money in the hands of taxpayers. Let me know if you need a detailed breakdown!
Data Privacy Compliance: Strengthening Your Organization’s Data Protection Framework
Union Budget 2025-2026 has significantly increased the budgetary allocation for the Data Protection Board of India by 2.5 times to ₹5 crore for FY26. This signals the Govt’s commitment to operationalizing the Digital Personal Data Protection Act, 2023, with the final version of the accompanying rules expected to be officially notified by mid-2025.
As India gears up to enhance its data privacy and cybersecurity landscape, organizations must proactively ensure compliance with evolving regulations. At Rajput Jain and Associates, we assist businesses in developing a robust data privacy framework that balances compliance with business objectives through the following services:
✅ Gap Assessment and Analysis
✅ Data Flow and Sharing
✅ Policies and Procedures
✅ Means and Purposes of Processing
✅ Consent Management
✅ Sector-Specific Legal Compliances
✅ Training and Capacity Building
✅ Documentation and Notifications
✅ Roles and Responsibilities of Stakeholders
Stay ahead of regulatory changes and ensure seamless compliance with the Data Protection Law. For more information, please contact us at singh@carajput.com
Rajput Jain & AssociatesRajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders.
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