The government's focus on sustainable manufacturing under the "Made in India"banner aims to propel indigenous production and establish India as a leader in eco-friendly toy design. This bold initiative not only seeks to revitalize the toy sector by encouraging domestic manufacturing but also sets the stage for a broader cultural and economic transformation that could impact numerous industries across the country.

At the heart of this policy is the recognition that sustainable practices in manufacturing can drive growth and innovation while preserving precious natural resources. The government's emphasis on sustainable toy production reflects a commitment to environmental responsibility and a belief in the power of local talent and craftsmanship.

By promoting the creation of high-quality, eco-friendly toys, the new scheme intends to tap into the immense potential of India's creative industries, ensuring that the products manufactured are both culturally relevant and environmentally sound. This approach is expected to generate new job opportunities, enhance export potential, and contribute significantly to the nation's economic progress.

One of the key beneficiaries of this renewed focus on design and manufacturing is the National Institute of Design (NID). For many years, NID has been a pioneer in the field of Toy and Game Design through its esteemed Master Course -- a program that has historically been accessible to only 12 exceptionally talented students.

Recognizing the growing demand for creative education in this field and the evolving nature of play and design, NID will have to expand its course capacity. This expansion will open the doors to a wider pool of creative minds eager to explore the dynamic world of play-centric design, thereby nurturing the next generation of innovators who will drive India's creative future.

NID's approach to Toy and Game Design is far from conventional. The discipline is built around the concept of 'play' as a fundamental element of learning and innovation. By adopting a play-centric philosophy, the program addresses the increasing needs and challenges in education, entertainment, and human development. This trans-disciplinary field draws on knowledge from diverse domains both within and beyond traditional design, creating a unique space where creative interventions are infused with a playful spirit. In this environment, rigorous design principles coexist with imaginative exploration, giving rise to solutions that are as functional as they are delightful, and equipping students to meet the challenges of a rapidly changing world.

The curriculum at NID encourages students to embark on projects that span a wide range of applications—from digital and board games to interactive experiences and educational play materials. The emphasis on project-based learning allows students to integrate creative ideas with practical expertise, resulting in innovative products that are designed to address both current needs and future challenges.

In a world where gamification and interactive design are gaining prominence in fields as varied as technology, corporate training, healthcare, and crafts, NID's program serves as a crucible for ideas that bridge the gap between entertainment and education, sparking creativity at every level.

The traditional notions of play are being reimagined to suit modern society, where learning through interactive experiences has become a vital tool for fostering critical thinking, problem-solving, and collaboration. The push for innovation in this area is timely, as industries across the board are beginning to recognize the value of integrating playful methodologies into their design processes. As a result, the expansion of educational programs in toy and game design is not merely an academic exercise; it is a strategic investment in the future of creativity and sustainable innovation.

Amid these transformative developments, the journey of Austin Davis stands out as an especially inspiring example of how passion and interdisciplinary learning can drive success. With deep Malayalee roots and a longstanding connection to NID's Toy and Game Design department, Austin's story is a testament to the power of following one's passion and embracing the unexpected turns of a creative career. After completing his schooling at St. Columba's School in Delhi, he moved to Kerala, where he pursued a B.Tech in Mechanical Engineering at the Government Engineering College in Thrissur. Yet, it was his innate curiosity and passion for design that led him to Gujarat and ultimately to the National Institute of Design, Gandhinagar, where he completed his postgraduate studies in Toy and Game Design.

At NID, Austin Davis discovered a profound interest in the concept of "Learning through Play."This idea, which seamlessly blends the joy of play with the discipline of structured learning, quickly became the cornerstone of his professional and academic pursuits.

Embracing the philosophy that play is not a trivial pursuit but rather a critical component of education, Davis dedicated himself to exploring innovative ways to integrate playful approaches into design thinking. His academic achievements and innovative spirit propelled him into the professional world, where he embarked on a career as a game designer, working across multiple platforms including web, consoles, and smartphones.

During his nearly four-year stint in the game design industry, Austin contributed to a number of high-profile projects that showcased his creative talent and technical expertise. One of his notable projects was a motion controller-based game developed for Sony --a project that underscored his ability to merge cutting-edge technology with engaging gameplay. He also played a key role in creating a promotional game for the iconic film Sholay in collaboration with Hungama, demonstrating his versatility and deep understanding of cultural storytelling. In addition, his work on an educational app featuring a range of interactive games and assessment tools for schools highlighted his commitment to harnessing play as a medium for learning. His portfolio further includes the development of several casual games inspired by Indian culture and history for Gameveda.com, cementing his reputation as a creative force in the industry.

In 2014, after gaining valuable experience in the gaming sector, Austin Davis returned to Gujarat, where he dedicated a full year to developing board games designed as tools for teaching complex subjects in an accessible manner. During this period, he also ventured into creating educational board games and DIY kits tailored specifically for primary school students. His ability to merge technical skills with a passion for early childhood education allowed him to create products that were both instructive and engaging. Alongside his work in game design, Davis also cultivated an interest in illustration, adding another creative dimension to his repertoire and enriching his overall approach to design.

Austin's journey eventually led him back to academia at NID, where his expertise and passion for learning through play were met with enthusiasm. Initially joining as a Visiting Faculty member for Systems Design in the TGD department, he soon became involved in the two-year Design Teacher Development Programme -- a move that further honed his teaching skills and deepened his understanding of educational methodologies.

His dedication and innovative approach paved the way for him to serve as a Teaching Associate, and by November 2017, he was officially absorbed as an Associate Faculty member. Throughout his academic career, Davis has maintained a steadfast commitment to exploring structured play, design thinking through playful tools, and systems thinking. His work not only enriches the curriculum at NID but also inspires students to pursue their creative passions with rigour and enthusiasm.

"I believe that we need to place more emphasis on design in toy manufacturing. Only then can we develop truly innovative, user-friendly toys. As the market continues to grow, I am convinced that prioritizing quality design is essential," said Austin Davis.

The confluence of government initiatives and academic innovation marks a pivotal moment for both the toy manufacturing industry and design education in India. The Union Budget's focus on sustainable manufacturing is poised to invigorate domestic production of eco-friendly toys, setting new standards for quality and environmental stewardship.

Concurrently, NID's decision to expand its Master Course on Toy and Game Design signals a commitment to nurturing a larger community of creative professionals who are equipped to drive the next wave of innovation in design and manufacturing.

This integrated approach holds the promise of transforming the industry from multiple angles. On one hand, sustainable practices in manufacturing will not only bolster economic growth but also ensure that environmental considerations remain at the forefront of production processes.

On the other hand, the expansion of design education at NID will empower a new generation of designers with the skills and mindset necessary to navigate the challenges of a rapidly changing global landscape. The emphasis on project-based learning and playful methodologies is particularly significant in a world where traditional boundaries between disciplines are increasingly blurred, leading to innovations that are both groundbreaking and deeply rooted in cultural authenticity.

The "Made in India"sustainable toy initiative is a clear example of how forward-thinking government policy can catalyze broader societal change. By prioritizing local production and environmentally friendly practices, the initiative is set to create a ripple effect that extends far beyond the toy industry.

The potential for indigenous toys to capture both domestic and international markets is immense, as consumers around the world are increasingly seeking products that combine cultural authenticity with modern design and sustainable production methods. Moreover, this initiative has the potential to rejuvenate traditional craftsmanship by integrating age-old techniques with contemporary design principles, ensuring that India's rich cultural heritage is preserved while embracing modern innovation.

Furthermore, the emphasis on sustainability in the toy industry has far-reaching implications for other manufacturing sectors. As industries increasingly adopt eco-friendly practices, the lessons learned from sustainable toy production could serve as a model for broader industrial transformation. The integration of renewable materials, waste reduction techniques, and energy-efficient production processes in toy manufacturing can inspire similar changes in other areas of the economy. In this way, the government's initiative is not merely about boosting a single industry; it is part of a larger vision for a greener and more innovative India -- a vision where economic growth and environmental responsibility go hand in hand.

As educational institutions like NID expand their curricula to include a wider array of creative disciplines, they play a crucial role in shaping the future of India's design landscape. The decision to increase the seats in the Master Course on Toy and Game Design is a strategic response to the growing demand for creative talent in the industry.

By opening up access to this prestigious program, NID is ensuring that more students have the opportunity to engage in a form of learning that is both rigorous and innovative. This expansion is expected to have a multiplier effect, generating new ideas, products, and approaches that will drive the evolution of the toy industry and related fields, ultimately positioning India as a global hub for sustainable and culturally resonant design.

Austin Davis's journey from a curious student to a renowned game designer and dedicated educator encapsulates the transformative power of play-based learning. His ability to blend technical expertise with creative flair serves as a shining example of how interdisciplinary education can lead to remarkable achievements.

Davis's work in developing engaging games and educational tools underscores the importance of integrating play into learning processes -- a principle that is central to the future of both education and industry. His career stands as a testament to the belief that play, far from being merely recreational, is a vital ingredient in the recipe for innovation and holistic human development.

Looking forward, the convergence of sustainable manufacturing initiatives and advanced design education is poised to create a new paradigm in the way products are conceived, developed, and brought to market in India. As the government continues to invest in eco-friendly practices and indigenous production, and as institutions like NID refine their educational offerings to embrace the latest trends in play and design, the stage is set for a renaissance in creative innovation.

This is a moment when tradition meets modernity, when environmental consciousness aligns with technological advancement, and when the playful spirit of creativity is harnessed to address some of the most pressing challenges of our time.

In essence, the recent Union Budget announcement and the subsequent initiatives by NID represent a bold step forward for India. They illustrate a vision of a future where sustainable practices, cultural authenticity, and innovative design converge to create products and experiences that are not only marketable but also deeply meaningful.

As India positions itself as a global leader in sustainable toy manufacturing and creative education, the ripple effects of these endeavours will be felt across multiple sectors, inspiring waves of innovation that redefine the boundaries of what is possible. With visionary policies and the relentless energy of creative educators like Austin Davis, India is on the cusp of a transformative journey -- a journey where every toy, every game, and every design is a celebration of innovation, sustainability, and the timeless power of play.

In the coming years, as the "Made in India"sustainable toy initiative gains momentum and NID's expanded program nurtures the next generation of creative professionals, the impact of these efforts will extend well beyond the confines of their respective fields. They will inspire new ways of thinking, forge new methods of production, and open up fresh avenues for creative expression that have the potential to reshape entire industries. This is a future where every spark of creativity and every step toward sustainable progress contributes to a legacy of innovation and cultural pride -- an enduring tribute to the transformative power of play and the visionary spirit driving India forward.

The current Income Tax Act, which has been in place since 1961, is being replaced by a new version designed to meet the needs of the 21st century. Finance Minister Nirmala Sitharaman announced in the Budget that the country requires a new tax regime, with the new bill likely to be introduced in Parliament on February 6.

A review committee has been formed to replace the old, complex tax law. Based on the committee's recommendations, the government has prepared the new Income Tax Bill.

In today's digital world, many tax-related tasks can be done online, and the new bill is designed to make the system even easier for taxpayers. By simplifying the rules, the government aims to make the tax process more accessible for everyone.

The new bill is expected to be much shorter than the old law. While the current Income Tax Act contains about 6 lakh words, the new bill will reduce this to around 3 lakh words, making it easier for taxpayers to understand.

The government is also focusing on simplifying the language of the new bill, as the current rules can be confusing, with many provisions open to different interpretations.

Since its introduction in 1961, the Income Tax Act has undergone numerous amendments, making it increasingly difficult for people to understand. The government believes a new bill will make the system more straightforward.

While some people worry that the new tax rules will mean the end of the old tax regime, sources have stated that the government has no plans to abolish it at this stage. Currently, around 78% of taxpayers have switched to the new tax regime, but no significant changes to the old system are expected.

Additionally, the government aims to encourage people to invest in a wider range of assets, including mutual funds, SIPs, and the stock market, rather than relying solely on government schemes. This, in turn, will boost private consumption and contribute to a healthier economy.

Recalling the President's address at the start of the Budget session of Parliament, Rahul said: "I heard pretty much the same address this time as the one delivered last time and the time before that."

Key points from Rahul Gandhi's speech

• Criticised the government's approach to diplomacy, stating that "we would not send our foreign minister to the US to get our PM invited to the US President's 'coronation'."
• Highlighted four key technologies shaping mobility: electric motors, batteries, optics, and artificial intelligence applications.
• Emphasised the need for India to focus entirely on production, warning that social tensions were rising.
• Argued that the country had failed in organising production and had instead outsourced it to China.
• Acknowledged that 'Make in India' was conceptually a good initiative but claimed that PM Modi had ultimately failed in its implementation.
• Stated that neither the UPA nor the NDA governments had provided a clear solution to unemployment, leaving youth without concrete answers on job opportunities.

Addressing a rally here ahead of the Delhi assembly polls on February 5, Modi spoke about various beneficial provisions of the Budget for the middle class to claim that never since India's Independence those earning up to Rs 12 lakh have received such a relief.

The middle class is saying that this is the most friendly Budget for them in India's history, he said.

Slamming the Aam Aadmi Party government in the capital for its alleged false promises and corruption, he said its policies have led to closing of factories, adding that those who have looted people will have to account for it.

While on the one hand is 'AAP-da' which stands for false promises, on the other is 'Modi's guarantees', the prime minister said.

Greeting people on Basant Panchami on Sunday, he said the festival marks the change in the season, adding that people of Delhi have made up their mind to elect a BJP government.

The prime minister said the "AAP-da" has destroyed 11 years of the national capital, and a double engine government dedicated to its development and growth will now be elected.

His government at the Centre, he asserted, has stood for strengthening four pillars of poor, farmers, youth and women, and the Budget is the guarantee of fulfilling Modi's guarantees.

The Budget's focus on employment generating sectors like tourism and manufacturing will benefit the youth, he said.

He spoke of welfare promises made in the BJP manifesto, including for senior citizens and women, to highlight the benefits a BJP government in the national capital will bring to them.

When Modi gives a guarantee, he puts his heart, mind and soul into fulfilling it, the prime minister said.

With the middle class, including salaried employees, making up for a significant section of voters, the prime minister said his government takes decisions which meet their dreams and aspirations.

Taking on the Aam Aadmi Party's claims, the prime minister told people that no jhuggi will be demolished in Delhi and no welfare scheme shut in the case of the BJP coming to power.

Reaching out to people from Purvanchal, Modi noted that he is an MP from the region, a reference to Varanasi.

He added that the National Democratic Alliance government is working day and night to develop Bihar and mentioned several state-specific proposals in the Budget.

Expressing confidence about the BJP's win, Modi said, "You can note it down the BJP government will be formed in Delhi on February 8, and by March 8, International Women's Day, women will start receiving Rs 2,500."

Women, he said, have worked as his protective shield and have made a big contribution in ensuring the third term of his government at the Centre.

Delhi, he said, has paid a heavy price due to the AAP government and has decided to get rid of it, he said.

Those who live in 'sheesh mahal' cannot related to a poor family's jhuggi or a middle class family's 2BHK flat, he said, in a swipe at former chief minister and AAP leader Arvind Kejriwal.

The AAP has committed scam and corruption in every field, including in health measures for people, he claimed.

With several AAP leaders, including sitting MLAs who were not given ticket by the party in the polls, quitting it, Modi said they have realised the massive anger people have for the party. Feeling jittery, the AAP is making false announcements everyday, he added. (PTI)

The Finance Act of 2022 established a framework to tax Virtual Digital Assets (VDAs), including cryptocurrencies, with a flat tax rate of 30% on income from their transfer, in addition to any applicable surcharge and cess. The 2025 Budget proposals expand the definition of VDAs to cover any crypto-asset that relies on cryptographically secured distributed ledger technology to validate transactions.

Under the new rules, salaried individuals must pay a 1% Tax Deducted at Source (TDS) on VDA transfers if the transaction exceeds ₹10,000, while for business persons, the threshold is ₹50,000. The only deduction allowed from VDA sale proceeds is the cost of acquisition, with transaction fees and related expenses ineligible for tax deduction.

Importantly, losses from VDAs cannot be offset against other income, nor can losses from one VDA be set off against gains from another.

Example:

Ravi sold Ethereum at a loss of ₹5,00,000 and made a gain of ₹8,00,000 from selling Bitcoin. Additionally, Ravi has long-term capital gains of ₹6,00,000 from listed shares.

Ravi cannot offset his loss of ₹5,00,000 from Ethereum against the gain from Bitcoin. Thus, he will be taxed on a profit of ₹3,00,000 from the sale of Bitcoin.

Similarly, the loss from Ethereum cannot be set off against the gains from the sale of listed shares, and Ravi will pay tax on the shares at the long-term capital gains rate of 12.5%.

Furthermore, the loss from Ethereum cannot be carried forward to future years.

Tax on crypto is applicable in several scenarios:

• When crypto is sold for goods or services.
• When exchanged for other cryptocurrencies.
• When received as a gift.

It is crucial for individuals involved in cryptocurrency transactions to report their income from VDAs in Schedule VDA of their annual Income Tax Returns (ITR), which would be either ITR-2 or ITR-3. Failing to accurately report VDA income can result in penalties, along with interest on any unpaid tax.

Infrastructure expansion at the five new IITs to accommodate 6,500 more students, 10,000 new medical seats and an allocation of Rs 500 crore to set up a Centre of Excellence in Artificial Intelligence for education, are among the big announcements for the education sector in the 2025-26 budget.

Union Finance Minister Nirmala Sitharaman announced on Saturday that the government plans to add 75,000 seats in medical colleges in the next five years.

The India Edtech Consortium (IEC) said increasing seats in medical colleges was urgently needed to meet the requirements of the healthcare sector as well as to reduce student outflow to other countries.

Prateek Maheshwari, Co-Founder, PhysicsWallah (PW) and Chairman, Indian Edtech Consortium (IEC), said, "75,000 additional medical seats over five years is a crucial step in reducing medical student outflow to other countries, given that over 23 lakh students appear for NEET, but only 1.1 lakh seats are available,"

The Economic Survey of 2024-25 tabled in Parliament on Friday flagged that the availability of opportunities for medical education appears to be geographically skewed, apparent from the fact that 51 per cent of undergraduate seats and 49 per cent of postgraduate seats are in the southern states. Further, the availability is skewed in favour of urban areas with the urban to rural doctor density ratio being 3.8:1.

The survey noted that the very low pass percentage of Foreign Medical Graduates (FMGs) in the qualifying exam to practice in India indicates sub-par quality of medical education abroad, including lack of clinical training.

The survey also recommended that as policy intervention to dissuade medical education abroad is crafted, keeping costs in India within reasonable limits is essential.

Preety Kumar, Managing Partner, Amrop India, an executive search and leadership advisory firm for organisations, including educational institutions, said the increased budget allocation for education, particularly with the focus on expanding capacity in IITs, medical colleges, and hospitals, definitely points to a strategic push to improve India's higher education ecosystem.

"..but, while the physical infrastructure is being expanded, there is an even more pressing need for high-quality faculty to meet the demand for new programs and institutions," Kumar said.

Monica Malhotra Kandhari, MD, Aasoka (MBD Group) said the addition of 10,000 medical college seats—with a vision to reach 75,000 in the next five years—will significantly enhance healthcare education and workforce capacity.

Indranil Manna Vice Chancellor, BIT Mesra, Ranchi, welcomed the announcements in the budget for the education sector but said an additional focus on private educational institutions in the current Budget would have given a booster dose to the sector since a higher number of students enrol in private institutes, than government ones.

"These measures, coupled with the emphasis on digital education and research fellowships, will certainly propel India toward becoming a global knowledge and innovation hub," Manna said.

Dr Venkat Rangan, Vice-Chancellor, Amrita Vishwa Vidyapeetham, said the addition of 75,000 undergraduate medical seats over the next five years will significantly strengthen healthcare education and accessibility.

Supriya Pattanayak, Vice Chancellor, Centurion University, Odisha, welcomed the plan to increase the number of seats at medical colleges and hospitals, as it will play an instrumental role in enhancing healthcare across the country.

There are over 1.10 lakh MBBS seats available in medical colleges across the country. A record over 25 lakh candidates had appeared for the medical entrance exam--NEET UG in 2024.

Every year, Foreign Medical Graduate Exam (FMGE) sees a varying number of candidates attempting the exam. For the FMGE 2024 December session, a total of 13,149 candidates cleared the examination while the FMGE total candidates who appeared for the examination were 44,392.

Agencies

While India's tax policies have previously been lenient towards students and early-career professionals abroad, Budget 2025 introduces new compliance demands, particularly for those planning to stay overseas long-term.

Key changes in NRI Tax regulations

The budget proposes stricter monitoring of foreign-earned income for NRIs, particularly through revisions in tax treaties and compliance rules. Notable changes include:

1. Increased scrutiny of foreign income: Enhanced data-sharing agreements with multiple jurisdictions, especially countries under India's Double Tax Avoidance Agreements (DTAA), will require Indian students working abroad to disclose their foreign earnings in India, even if they have no active income sources in India.

2. Broadened residency definition for taxation: While NRIs were previously taxed only on Indian-sourced income if they stayed in India for more than 182 days in a year, reforms in Budget 2020 lowered this to 120 days for high-income individuals. Budget 2025 hints at further tightening, making it harder for students and professionals to maintain NRI status if they have significant financial connections to India.

3. Impact on tax treaty benefits: India's DTAA agreements, with countries like the US, UK, Canada, and Australia, may undergo revisions to close loopholes used for tax avoidance. This could lead to higher withholding taxes on foreign remittances and stricter documentation for tax relief under the DTAA.

Implications for students and professionals abroad

For students and young professionals working in the US, UK, Canada, or Australia, these changes could result in higher tax obligations and potential double taxation risks. Key concerns include:

• Increased reporting obligations: Indian tax authorities are likely to require more detailed disclosures on foreign earnings, investments, and bank accounts. Failing to report these accurately may result in penalties or legal action under anti-tax evasion laws.

• Complicated financial transfers: Those transferring money to India, whether for family support, investments, or savings, may face increased tax scrutiny. Transactions via the Liberalised Remittance Scheme (LRS) could also be subject to compliance checks, especially for large transfers.

• Higher tax liabilities upon return: Students planning to return to India could face taxes on foreign assets, including savings, stocks, or property investments, if these are not properly declared. Non-disclosure may result in penalties under the Foreign Asset Disclosure Rule of the Black Money Act.

Should students be concerned?

While these changes may not immediately affect students, those planning long-term residency or citizenship abroad should be more cautious. For students seeking permanent residency in countries like Canada, Australia, or H1B sponsorships in the US, careful planning of their tax status is essential.

Additionally, students returning to India after their careers abroad will need to ensure proper tax planning and documentation, particularly regarding foreign assets, to avoid future tax disputes.

She emphasized that Prime Minister Narendra Modi strongly supported the idea of tax cuts, though it took time to convince the bureaucrats.

In an interview post budget speech, Sitharaman said, "We have heard the voice of middle class who had been complaining about their aspirations not being met despite being honest taxpayers."

Sitharaman presented the Union Budget 2025 in the Lok Sabha outlining a roadmap for India's continued economic expansion, emphasizing agriculture, micro, small, and medium enterprises (MSMEs), investment, and exports.

She announced that no income tax will be payable on income up to Rs 12 lakh, providing significant relief to taxpayers, especially the middle class.

"There are a couple of things, which have been in the works for some time. One is the thought that the direct tax should be made simple and that it should be easy for compliance, and the tomb that goes in the name of direct taxation or Income Tax Act, will have to be a lot simpler," she said.

Sitharaman went on to explain that the work was announced in the July 2024 Budget, with the goal of having the new income tax act ready within six months.

"In the process, although the emphasis was more towards simplifying the language, reducing the compliance burden, and also to make it a bit more user-friendly, and not let it be suffering due to various interpretations, which also was sought to be termed as rent-seeking tools," she elaborated.

She also mentioned the feedback she received from taxpayers during her travels, noting that the voice of the people was clear: "We are proud taxpayers, we are honest taxpayers, we want to be continuing to serve the country by being good taxpayers. But would you think about the kind of things you can do for us."

Sitharaman shared that after hearing these concerns, she had a discussion with Prime Minister Narendra Modi, who gave her the specific task to address the matter. "I had this discussion with the honourable PM, who put me on this specific assignment to 'see what you can come up with,'" she explained.

The Finance Minister noted that the work within the ministry was guided by the Prime Minister, and after briefing him on the proposals, they were able to come up with a plan that would benefit the taxpayers. "Therefore, we did a bit of work within the ministry and briefed the PM on what it is before us, and guided by him, we have come up with this..." she added.

The new income tax regime announced by Finance Minister Nirmala Sitharaman introduces several key changes aimed at providing relief to the middle class. Individuals earning up to Rs 12 lakh annually will no longer be required to pay any income tax. For the salaried class, an additional Rs 75,000 standard deduction has been introduced. The government has also restructured the tax slabs for those earning above Rs 12 lakh, allowing those with incomes up to Rs 25 lakh to save up to Rs 1.1 lakh in taxes. As a result, around 1 crore people will no longer have to pay taxes, and over 6.3 crore people, or more than 80% of taxpayers, will benefit from the new tax structure.

How Income Tax is Calculated Under the New System

Let's break down how income tax will be calculated for an individual earning Rs 14 lakh annually:

1) First Rs 4 Lakh: This portion is tax-free.

2) Next Rs 4 Lakh (Rs 4-8 Lakh Slab): Tax is applied at 5%.

Tax: 5% of Rs 4 lakh = Rs 20,000

3) Next Rs 4 Lakh (Rs 8-12 Lakh Slab): Tax is applied at 10%.

Tax: 10% of Rs 4 lakh = Rs 40,000

4) Remaining Rs 2 Lakh (Rs 12-14 Lakh Slab): Tax is applied at 15%.

Tax: 15% of Rs 2 lakh = Rs 30,000

Total Tax Liability:

• Rs 20,000 (from Rs 4-8 lakh)
• Rs 40,000 (from Rs 8-12 lakh)
• Rs 30,000 (from Rs 12-14 lakh)

Total Tax = Rs 20,000 + Rs 40,000 + Rs 30,000 = Rs 90,000

So, for an income of Rs 14 lakh, the total tax liability would be Rs 90,000.

Understanding the Rebate

The new tax system also includes a rebate for taxpayers. For example, if a salaried person earns Rs 12 lakh annually, the tax liability will be calculated as follows:

• First Rs 4 Lakh: No tax
• Next Rs 4 Lakh: Tax at 5% = Rs 20,000
• Next Rs 4 Lakh: Tax at 10% = Rs 40,000

Total Tax = Rs 20,000 + Rs 40,000 = Rs 60,000

However, the government offers a full rebate of Rs 60,000, which effectively makes the income of Rs 12 lakh tax-free for the taxpayer.

In essence, the new tax system not only reduces the tax burden but also provides significant relief for middle-income earners, with many individuals not having to pay any taxes at all.

The Kerala state government has approved a master plan worth Rs 1033.62 crore for the development of the Sannidhanam, Pamba, and Nilakkal areas of Sabarimala. However, the state alone cannot meet this financial burden. The high-tier committee formed specifically for Sabarimala also lacks the funds needed for the project.

While the state had announced the development plan with a 25-year vision, only a small portion of the proposed amount has been allocated in the state budget. However, obstacles in securing this funding have delayed progress.

The central government has maintained that it has not received any formal request from the state for financial assistance for Sabarimala's development. Hopes that the pilgrimage centre would receive funding as part of the national budget have remained unfulfilled, as was the case in previous years.

The last time Sabarimala received significant assistance from the central government was three years ago, when Rs 12 crore was allocated under the pilgrimage tourism scheme. This amount was used to improve road infrastructure in some areas of the temple town.

There was also anticipation that the central budget would include an announcement for the Chengannur-Pamba railway line, but this too did not materialise.

The state's master plan envisions a complete renovation of the Sannidhanam area, with the goal of ensuring that the temple is the only visible structure from the 18th step. Additionally, a Rs 31.9 crore project has been proposed for the construction of a safety bridge from Pamba Hilltop to the Ganapathi temple courtyard.

However, there is no funding available for the complete development plan for Nilakkal, as the state government did not formally request the necessary funds, and the central government did not allocate any resources for the project.

Last year, the state's power department discussed the possibility of a thorium-based nuclear plant with experts from the Bhabha Atomic Research Centre (BARC). Electricity Minister K. Krishnankutty has also expressed optimism, stating that utilising thorium could help the state achieve development on par with European nations.

What are Small Modular Reactors?

The small modular reactor (SMR) is a class of small nuclear fission reactor, designed to be built in a factory, shipped to operational sites for installation and then used to power buildings or other commercial operations. India already possesses the technology to generate electricity. A pilot project, the 5 MW Molten Salt Breeder Reactor in Visakhapatnam, demonstrates this capability. These SMRs can effectively utilize thorium as a fuel source.

Why Thorium?

Public concerns regarding nuclear power largely stem from the risks of radiation and nuclear waste management.

Thorium reactors produce less nuclear waste and pose a lower radiation hazard compared to conventional uranium-based reactors.

India holds over 30% of the world's thorium reserves, with a significant portion located along the Kerala coast.

Safety advantages of Thorium reactors

In traditional nuclear reactors, even when the reactor shuts down in an emergency, significant heat continues to be generated. To prevent a meltdown, water needs to be continuously pumped in from outside to cool the core. This is not required in thorium-based reactors, which is a major advantage.

Thorium reactors use a molten salt mixture of uranium and thorium as fuel. This mixture continuously flows inside the reactor, with only the portion passing through the core being heated. The rest of the mixture circulates around the core, naturally cooling it.

In case of overheating, a fuse is designed to melt, allowing the entire fuel mixture to flow out and into a separate storage tank, effectively shutting down the reactor.

The installation cost of a thorium nuclear plant is comparatively low. Experts suggest that electricity could be provided to the public at a cost of less than ₹1 per unit.

Thorium reactors generate significantly less nuclear waste, and the radiation decay period is much shorter than conventional reactors.

Health Minister Veena George expressed her strong disapproval, stating that the health sector in Kerala has been completely overlooked in the Union Budget. She emphasised that Kerala had already taken all necessary steps, including land acquisition, in line with the Centre's guidelines.

The Minister further revealed that repeated requests had been made to Union Health Ministers, urging them to approve the AIIMS project for Kerala without delay.

Overall Allocation for Youth Affairs and Sports

For the financial year 2025-26, the Ministry of Youth Affairs and Sports has been allocated ₹3,794.30 crore, comprising ₹3,788.49 crore under revenue expenditure and ₹5.81 crore under capital expenditure. This represents a substantial increase from the revised allocation of ₹3,232.85 crore in the 2024-25 budget. This increase signifies a dedicated effort to provide more resources for developing sports infrastructure, training facilities, and supporting youth engagement in sports. The budget reflects India's determination to foster a thriving sports culture and prepare future generations for excellence.

Central Sector Schemes/Projects: Major Allocations

The allocation for Central Sector Schemes, which primarily fund initiatives aimed at developing sports infrastructure and supporting sports federations, has seen a sharp rise. The total amount dedicated to Central Sector Schemes for 2025-26 stands at ₹2,191.01 crore, up from ₹1,569.76 crore in the previous year, marking an increase of ₹621.25 crore. This significant hike demonstrates the government's resolve to bolster the sports ecosystem in the country.

Khelo India Programme: Leading the Charge in Sports Development

A central focus of the budget is the Khelo India Programme, which has received a boost with an allocation of ₹1,000 crore for the financial year 2025-26, an increase from ₹800 crore in 2024-25. The Khelo India Programme is the government's flagship initiative to identify and nurture sporting talent at the grassroots level. This increase in funding will help expand its reach, enhance infrastructure, and provide further opportunities for young athletes from across the nation.

Since its inception, the programme has made significant strides in promoting sports in schools, colleges, and villages, encouraging youth participation, and uncovering raw talent. The additional funding will likely strengthen training camps, competitions, and sports events, providing young athletes with the resources and exposure they need to compete at national and international levels.

Support for National Sports Federations: Increased Financial Aid

Financial assistance to National Sports Federations (NSFs) has been raised to ₹400 crore, marking a significant increase from ₹340 crore in 2024-25. These federations play a crucial role in managing various sports disciplines in the country, and this funding will ensure they have the necessary resources to support athletes and develop their respective sports. The additional funds will aid in organizing national-level competitions, training programs, and fostering better relationships between athletes and their governing bodies.

National Sports Development Fund: Steady Commitment

The National Sports Development Fund (NSDF), which supports various sports development initiatives, continues to receive ₹18 crore. While this figure remains unchanged from the previous year, the fund remains an important financial resource for providing scholarships, financial assistance, and support for sports organizations.

Incentives for Sportspersons: A Reduction Amidst Overall Growth

The budget for providing incentives to sportspersons has seen a reduction from ₹42.65 crore in 2024-25 to ₹37 crore in the current year. These incentives typically include cash awards and pensions for athletes who achieve outstanding performances. Although the reduction is significant, it is important to note that the government's focus appears to be shifting towards long-term athlete development and grassroots support rather than short-term incentives. It remains to be seen how this change will impact the morale of elite athletes.

Enhancement of Sports Facilities in Jammu & Kashmir

A notable highlight of the budget is the allocation of ₹20 crore for the enhancement of sports facilities in Jammu and Kashmir, a sharp rise from the ₹6 crore provided in 2024-25. This move aims to improve the region's sports infrastructure, providing better facilities for local athletes, as well as increasing opportunities for youth engagement in sports. Given the strategic importance of Jammu & Kashmir, this investment underscores the government's commitment to fostering development in all corners of the country.

Support for Athletes and Sports Infrastructure

Apart from the major schemes and projects, the budget also allocates substantial funds to organizations that directly support athletes and manage sports infrastructure.

Sports Authority of India (SAI): A Crucial Pillar of Athlete Support

The Sports Authority of India (SAI), the apex body responsible for athlete training, development, and managing national camps, has received ₹830 crore in the 2025-26 budget, an increase from ₹815 crore in the previous year. SAI is integral to the development of sports in India, overseeing the training of athletes, the organization of national camps, and the management of key sporting facilities across the country.

This funding will help sustain and improve the training environment for athletes, ensuring that they have access to state-of-the-art facilities, coaching, and medical support as they prepare for international competitions.

National Sports University: A Decline in Funding

While most sports-related bodies have seen increased allocations, the National Sports University in Manipur has experienced a significant reduction in funding. The university, which was established to develop sports science education and training, has been allocated just ₹63.72 crore for 2025-26, a sharp drop from ₹189.09 crore in the previous year. This decline may raise concerns about the long-term sustainability of sports education and research in India. The government's decision to reduce funding for the university highlights the need for a balanced approach to sports development that includes both physical infrastructure and academic institutions.

National Centre for Sports Science and Research: A Modest Increase

The National Centre for Sports Science and Research (NCSSR), an institute dedicated to sports science research and innovation, has seen a slight increase in its budget allocation, receiving ₹10 crore, up from ₹8 crore in 2024-25. This increase aims to support research that can enhance athletes' performance, improve training techniques, and contribute to the overall growth of sports science in India.

Youth Development and Engagement

In addition to supporting athletes, the budget also provides significant funding for youth engagement and development programs.

Nehru Yuva Kendra Sangathan (NYKS): A Modest Increase

The allocation for the Nehru Yuva Kendra Sangathan (NYKS), an organization focused on youth development through various social programs, has been increased slightly to ₹423.50 crore, up from ₹412 crore in 2024-25. NYKS plays a key role in providing young people with opportunities to engage in community service, leadership development, and social initiatives, fostering a sense of responsibility and active citizenship.

Mera Yuva Bharat (MYB): Boost in Funding

The Mera Yuva Bharat (MYB) initiative, which aims to provide youth with opportunities for engagement in sports and other activities, has seen its budget increased to ₹82.48 crore, up from ₹74.76 crore. This increase will help enhance youth involvement in sports and community development projects, providing platforms for young people to showcase their skills.

National Service Scheme (NSS): A Landmark Hike

The National Service Scheme (NSS), which engages youth in community service and social work, has witnessed a massive increase in funding, with ₹450 crore allocated for 2025-26, a ₹200 crore rise from the previous year. This hike signals a strong commitment to engaging youth in nation-building activities, including sports-related community service initiatives that promote health, wellness, and social responsibility.

Comparative Budget Growth: A Step Towards a Sporting Nation

The 2025-26 Sports Budget reflects an overall increase of ₹352 crore compared to the 2024-25 revised estimates of ₹3,232.85 crore. The allocation growth emphasizes the government's focus on:

• Enhancing grassroots sports participation, encouraging youth to take up sports and excel in them.
• Developing infrastructure and training facilities, ensuring athletes have access to the best resources.
• Strengthening the role of sports federations, ensuring better support for athletes across disciplines.
• Improving financial incentives for athletes, ensuring recognition of their efforts.

Challenges and the Road Ahead

Despite the overall increase in funding, there are challenges to be addressed. Notably, certain areas such as the National Sports University and Incentives for Athletes have seen reductions. Efficient utilization of funds and the timely development of infrastructure will be crucial in ensuring the long-term success of these initiatives.

The significant investment in Khelo India and NSS highlights the government's recognition of the importance of grassroots development and youth engagement in sports. However, effective execution and accountability will remain key to determining the success of these initiatives.

As India eyes participation in upcoming international events such as the 2026 Commonwealth Games, this budget lays a strong foundation for the country's aspirations to become a global sporting powerhouse. With the right focus on athlete development, infrastructure, and youth participation, India is poised for a brighter sporting future. (With inputs from Agencies)

In a video that quickly captured the attention of netizens, Suresh Gopi, the BJP Member of Parliament from Thrissur, is seen celebrating Finance Minister Nirmala Sitharaman's announcement of tax relief for people earning up to Rs 12 lakh annually. As the announcement was made, Gopi, sitting for the Parliamentary session, was visibly ecstatic, raising his hands in the air and cheering loudly, reflecting his joy and appreciation for what he considered one of the major highlights of the budget. His enthusiastic gestures and jubilant expression mirrored the mood of other BJP and NDA ministers present in the session, all of whom were seen clapping and shouting in approval.

The video, which has since spread across social media platforms, shows not only Gopi but also other ministers in the BJP-led government reacting in a similar manner. Prime Minister Narendra Modi was later seen greeting Finance Minister Sitharaman, applauding her efforts after the session concluded.

Suresh Gopi's reaction has drawn widespread attention, with many praising his display of genuine excitement for the tax relief. However, the reaction also led to mixed responses, especially from those critical of the overall budget. While the announcement was hailed by BJP leaders and supporters, it has sparked disappointment and criticism from opposition parties, particularly in Kerala.

Meanwhile, Kerala's political leaders expressed dissatisfaction with the Union Budget, especially for the lack of provisions addressing key issues in the state.

Kerala Finance Minister K N Balagopal voiced strong discontent, accusing the Centre of political discrimination. He stated that the Union Budget ignored vital concerns for Kerala, including the tragic Wayanad landslide disaster and the underdevelopment of the Vizhinjam Port, a critical infrastructure project for the state's export promotion.

Balagopal pointed out that while Finance Minister Sitharaman focused extensively on exports, she failed to mention the Vizhinjam Port, one of the most important export-oriented projects in India over the past two decades. He also criticised the lack of financial allocations for Kerala, stating that the state was neglected despite its justified expectations.

With a focus on tax relief, infrastructure development and sector-specific reforms, the government demonstrates its commitment to sustainable, long-term growth. Key measures, such as income tax reductions—including a no-tax threshold up to Rs 12 lakh—and expanded exemptions and incentives for startups and MSMEs, will directly benefit individual incomes and entrepreneurial ventures, he pointed out.

The lowering of TDS rates will surely bring relief for salaried individuals, while increased customs duties incentivize local manufacturing. These tax reforms are set to invigorate the trade sector, especially the retail industry, Yusuff Ali hoped.

The decision to expand Foreign Direct Investment, particularly in the insurance sector, is a forward-thinking move poised to attract greater global investments. In addition, the raised interest income exemption for senior citizens offers essential financial security, improving their long-term well-being, he said.

"This budget clearly empowers the middle class and fosters a vibrant, self-reliant economy,"he said.

The ambitious scheme has been allocated Rs 1,000 crore for the financial year 2025-26. This is Rs 200 crore more than the grant of Rs 800 crore in 2024-25.

Overall, the Ministry for Youth Affairs and Sports was designated Rs 3,794.30 crore.

"This will further strengthen sports infra, boost Khelo India and expand youth-centric development initiatives, empowering the next generation of athletes and leaders," sports and youth affairs minister Mansukh Mandaviya posted on X, lauding the allocation for his ministry.

Increase in budget for sports-related bodies and infrastructure

The increase is substantial considering there is no major sporting event like the Olympics, Commonwealth or Asian Games lined up in the next one year.

The assigned amount for assistance to National Sports Federations has also been hiked marginally from Rs 340 crore to Rs 400 crore.

India is currently pushing through with an ambitious bid to host the 2036 Olympic Games for which a letter of intent has been submitted to the International Olympic Committee.

The allocation for Sports Authority of India (SAI), the nodal body for the conduct of national camps and logistical arrangements for athletes' training, was enhanced from Rs 815 crore to Rs 830 crore.

SAI is also responsible for maintaining and utilising stadia across the country.

A similar hike was announced for the National Dope Testing Laboratory, which will receive Rs 23 crore this financial year. It had been given Rs 18.70 crore in 2024-25.

The National Anti-Doping Agency's budget was increased from Rs 20.30 crore to 24.30 crore.

Budget cuts and allocations for youth and multilateral programmes

The contribution to the National Sports Development Fund, which was created in 1998, will continue to be Rs 18 crore for a second successive year, while the government has decided to cut the grant for incentive to sportspersons from Rs 42.65 crore to Rs 37 crore this year.

Cuts were also announced to the funding for National Programme for Youth and Adolescent Development and Youth Hostels. However, the contribution for multilateral bodies and youth exchange programmes has been raised from Rs 11.70 crore to Rs 55 crore.

A Rs 20 crore fund has been approved for the enhancement of sports facilities in Jammu and Kashmir, which is Rs 14 crore more than the previous year.

A massive chunk of the increased budget will be going to the National Service Scheme which will receive Rs 450 crore, a hike of Rs 200 crore from the previous year.

The National Service Scheme (NSS) aims to "develop character and personality of youth in schools and colleges."

It's a scheme that works towards shaping youngsters through social work and community service. (PTI)

The revised budget presented for 2024-25 witnessed an allocation of INR 2,658.68 crore for civil aviation.

According to budget papers, UDAN will get INR 540 crore, about 32% less as compared to INR 800 crore given in the last year's budget. Interestingly, FM has announced that the UDAN (Ude Desh ka Aam Naagrik) scheme will be modified to connect 120 new destinations.

The allocation for the DGCA and BCAS have increased marginally to INR330 crore and INR 95 crore, respectively, for 2025-26.

For the Customs Cost Recovery (CCR) charges to Airport Authority of India (AAI) and AAI Cargo Logistics and Allied Services Company Ltd (AAICLAS) for tier II / III cities' airports, the allocation has been raised to INR 142.75 crore from INR 124.17 crore in the same period a year ago.

In the next fiscal, Air India Asset Holding Ltd will get a slightly higher allocation of INR 1,025.51 crore compared to INR 1,017.67 crore in the current financial year. The budgetary provision is for servicing of loans transferred to AIAHL as a result of financial restructuring of Air India.

According to the budget papers, UDAN allocation is for revival of airports and for commencement of RCS routes, Viability Gap Funding for North East Connectivity. "To improve connectivity in NE region, a new scheme has also been formulated for providing air connectivity and aviation infrastructure,"

During the speech, FM said that UDAN has so far met the needs of 1.5 crore middle class people for speedier travel.

"Inspired by that success, a modified UDAN scheme will be launched to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in the next 10 years. The scheme will also support helipads and smaller airports in hilly, aspirational, and North East region districts," FM added.

Out of the total defense budget, ₹4.88 lakh crore has been allocated for revenue expenses, covering salaries, pensions, daily operational costs, and maintenance of defense equipment and infrastructure. Of this, ₹1,60,795 crore is specifically set aside for pensions. Meanwhile, ₹1.92 lakh crore has been earmarked for capital expenses, which will be used for acquiring new equipment, modernization projects, and infrastructure development.

As part of the capital expenditure, ₹48,614 crore has been allocated for aircraft and aero engines, while ₹24,390 crore has been set aside for the naval fleet. Additionally, ₹63,099 crore has been earmarked for other defense equipment.

This year's defense budget is nearly 9% higher than the initial estimate of ₹6.22 lakh crore for the 2024-25 financial year. It is also about 6% more than last year's revised allocation of ₹6.41 lakh crore, according to budget documents.

At the beginning of 2025, Defence Minister Rajnath Singh announced that the year would focus on major reforms. In the coming months, changes are expected in areas like integrated theatre commands, advancements in cyber and AI warfare, faster and more efficient defense acquisitions, smoother technology transfers, and improved support for defense exports.

The Ministry of Defence (Civil) has been allocated ₹28,682 crore for the financial year 2025-26, an increase from ₹25,963 crore in the previous year. This funding is meant to strengthen administrative and support functions that play a crucial role in managing the defense sector efficiently. The budget will be used for policy planning, research, and other essential support systems that improve the overall functioning of the armed forces.

What is the Ministry of Defence (Civil)?
The Ministry of Defence (Civil) oversees various administrative and non-combat functions related to India's defense. It manages defense-related policy formulation, coordination between different defense organizations, and research and development activities.

The Ministry of Defence (MoD) in India has a complex structure with various organizations under its purview. Here are some of the key civil organizations:

1. Department of Defence (DoD)

Headed by the Defence Secretary, this department is responsible for the defence of India, including defence policy, preparation for defence, and related matters.
It oversees the Inter-Services Organizations, Defence Accounts Department, Canteen Stores Department (CSD), Coast Guard, National Cadet Corps, Border Roads Organisation,1 and various institutes like the Institute for Defence Studies and Analyses and the National Defence College.

2. Department of Defence Production (DDP)

This department is responsible for the indigenous production of defence equipment and related items.
It administers various Defence Public Sector Undertakings (DPSUs) like Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), and Bharat Dynamics Limited (BDL).

3. Department of Defence Research and Development (DRDO)

DRDO is responsible for research and development in the defence sector.
It has a vast network of laboratories and establishments across the country, working on various technologies for the armed forces.

4. Department of Ex-Servicemen Welfare (DESW)

This department deals with the welfare and resettlement of ex-servicemen.
It oversees the Directorate General of Resettlement, the Kendriya Sainik Board, and the Ex-Servicemen Contributory Health Scheme.

5. Department of Military Affairs (DMA)

Headed by the Chief of Defence Staff, this department is responsible for promoting jointness in the armed forces.
It deals with matters related to the armed forces, including their organization, training, and operations.
Other Important Organizations:

Border Roads Organisation (BRO): Responsible for constructing and maintaining roads in border areas.
National Cadet Corps (NCC): A youth organization that provides military training to students.
Canteen Stores Department (CSD): Provides consumer goods to armed forces personnel at concessional rates.
Defence Accounts Department: Maintains the accounts of the defence services.
This is not an exhaustive list, but it covers many of the key civil organizations under the MoD in India. These organizations play a crucial role in supporting the armed forces and ensuring the defence and security of the nation.

(The author of this article is an award-winning Science Writer and a Defence, Aerospace & Political Analyst based in Bengaluru. He is also Director of ADD Engineering Components, India, Pvt. Ltd, a subsidiary of ADD Engineering GmbH, Germany. You can reach him at: girishlinganna@gmail.com)

The Finance Minister clarified that states will need to provide land for the construction of essential infrastructure.

The government will promote home-stays by expanding Mudra loans. In addition, travel facilities to tourist spots will be improved.

The Finance Minister emphasised that India's diverse heritage and cultural landmarks have great potential for economic growth.

e-Visa facilities and Visa fee concessions

There are also plans to improve medical tourism in India in collaboration with the private sector. Tourist visa norms will be simplified to encourage this sector, with Nirmala Sitharaman stating that the government will introduce efficient e-visa facilities and visa fee concessions for selected tourist groups to attract international visitors.

States that implement effective destination management, including tourism facilities and cleanliness, will be incentivised based on their performance, as mentioned by the Finance Minister in her Budget speech.

The Budget mentions Bihar on six occasions, Brittas noted, which is unusual, as no other state is given such prominence in the same manner. Bihar, he pointed out, is a key political ally supporting the government, and he raised questions about the political motivations behind including the state so frequently. He also questioned how tax exemptions were incorporated into the Budget and suggested that this was a strategic move ahead of the upcoming elections in Delhi, where the middle class is a significant voter base.

Brittas also highlighted that Kerala's concerns, which include over a dozen critical issues, were completely overlooked in the Budget. He further criticised the idea that globalization, which he argued has reached its conclusion, sadly still continues to dictate economic policies. Referring to past agreements, he pointed out that India had signed the ASEAN pact as part of globalization, but that the experiences of states like Kerala, where farmers face the brunt of such policies, show that these agreements need to be reconsidered.

The government's stance on capital sectors was also questioned, particularly with regard to the operations of the Vizhinjam Port, which is set to become one of India's most significant ports. Brittas pointed out that no specific announcements had been made regarding this development in the Budget. Similarly, the promise to increase medical seats by 10,000 was criticised for failing to consider the long-standing need for an AIIMS institution in Kerala.

Brittas concluded by emphasising the government's failure to address critical demands from Kerala and its disregard for the state's economic realities. He stressed that policies should be grounded in the needs of the people rather than political calculations.

This new structure is designed to ease the tax burden, especially for middle-income taxpayers.

Tax rebate for income up to Rs 12 lakh:

For individuals with a net taxable income of Rs 12 lakh or less, the Finance Minister has introduced an income tax rebate under Section 87A. This means that taxpayers whose income doesn't exceed Rs 12 lakh will now pay 'zero tax'.

Here's how this works:

- For incomes up to Rs 12 lakh, the rebate under Section 87A ensures that taxpayers pay no tax.
- For salaried individuals who avail of the standard deduction benefit of Rs 75,000, the tax-free limit is Rs 12.75 lakh, further increasing the benefit.

This effectively means that if your taxable income is Rs 12 lakh or less, you won't owe any taxes, thanks to both the tax rebate and the revised tax slabs.

Does that mean you only pay tax on the amount above Rs 12 lakh:

Not quite. The tax rebate is only available for those whose income is up to Rs 12 lakh. If your income exceeds Rs 12 lakh, you will have to pay taxes according to the new slab rates on the amount exceeding Rs 12 lakh.

For example:
- If your income is Rs 12.1 lakh, your taxable income of Rs 12.1 lakh will be taxed in the following way:
- Rs 4 lakh to Rs 8 lakh (5% tax) = Rs 20,000
- Rs 8 lakh to Rs 12 lakh (10% tax) = Rs 40,000
- The remaining Rs 0.1 lakh (10% tax) = Rs 1,000

Total tax = Rs 61,500 for an income of Rs 12.1 lakh.

- For someone earning Rs 15 lakh, the tax would be calculated as follows:
- Rs 4 lakh to Rs 8 lakh (5% tax) = Rs 20,000
- Rs 8 lakh to Rs 12 lakh (10% tax) = Rs 40,000
- Rs 12 lakh to Rs 15 lakh (15% tax) = Rs 45,000

Total tax = Rs 1,05,000 for an income of Rs 15 lakh.

Tax benefit for higher earners

For those earning above Rs 15 lakh, the revised tax rates provide substantial savings:
- Income between Rs 12 lakh to Rs 16 lakh will now be taxed at 15% (a sharp cut from the previous 30%).
- Income between Rs 16 lakh to Rs 20 lakh will be taxed at 20%.
- Income between Rs 20 lakh to Rs 24 lakh will be taxed at 25%.
- Income above Rs 24 lakh will continue to be taxed at 30%.

For example, someone earning Rs 18 lakh will pay:
- Rs 4 lakh to Rs 8 lakh (5% tax) = Rs 20,000
- Rs 8 lakh to Rs 12 lakh (10% tax) = Rs 40,000
- Rs 12 lakh to Rs 16 lakh (15% tax) = Rs 60,000
- Rs 16 lakh to Rs 18 lakh (20% tax) = Rs 40,000

Total tax = Rs 1,60,000 for an income of Rs 18 lakh.

Tracking Sitharaman's Budget speeches over the years:

• 2024: The speech lasted 1 hour and 25 minutes, Interim budget: 56 minutes
• 2023: Completed in 1 hour 27 minutes.
• 2022: The budget speech lasted 1 hour 30 minutes.
• 2021 (First Paperless Budget): Presented using a tablet wrapped in a traditional 'bahi-khata' pouch, the speech lasted 1 hour and 40 minutes.
• 2020 (Record Year): Setting a record for the longest speech in Indian history, Sitharaman spoke for 2 hours and 42 minutes. She paused midway due to feeling unwell, requiring a break to stabilise her health.
• 2019 (First Budget Speech): As India's first full-time female Finance Minister, her inaugural speech lasted 2 hours and 15 minutes, with occasional switches to Hindi, Tamil, Urdu, and Sanskrit. She didn't stop for a water break during the speech.

Budget Allocation & Key Highlights

• Flat Allocation: ₹2.55 lakh crore allocated, unchanged from FY25, disappointing investors expecting an increase.
• Rail Stocks Drop: IRFC, RVNL, IRCON, and RailTel stocks fell by up to 9% following the budget announcement.
• Past Achievements: Electrification of 41,655 route km and commissioning of 31,180 km of new tracks since 2014.
• Freight Growth: Railways achieved an all-time high freight loading of 1,588 MT in FY24, targeting 3,000 MT by 2030.
• Kavach Expansion: ₹1,112.57 crore allocated for the safety system's expansion after successful deployment across 1,465 km.

Stock Market & Industry Reaction

• Market Sell-Off: Investors reacted negatively, as expectations of a higher railway capex boost were not met.
• Strategic Infrastructure Focus: Previous budgets prioritised industrial corridor connectivity, but new allocations lack fresh expansion plans.
• Funding Concerns: Railways continue to depend on extra-budgetary resources due to insufficient internal surplus.

What Lies Ahead?

The unchanged allocation signals fiscal constraints, but ongoing freight and safety initiatives could drive long-term growth. With increased capital investment needs, Indian Railways may rely more on private partnerships and external funding sources in the coming years.

The Finance Minister's Budget speech included a series of sops for Bihar, which is preparing for assembly elections later this year. Among the key announcements were the development of Greenfield airports, an expansion of Patna Airport, and the establishment of a brownfield airport in Bihta. In addition, the Western Kosi Canal ERM project was highlighted, which aims to support farmers in Mithilanchal, benefitting over 50,000 hectares of agricultural land.

Opposition Allegations of Election-Driven Budget

Congress MP Manish Tewari criticised the government's focus, questioning whether the Budget was designed for India or Bihar. "I fail to understand that was this a budget of government of India or was this a budget of government of Bihar? Have you heard the name of another state than Bihar in the entire budgetary speech of the union finance minister?" Tewari said, hinting at the electoral calculations behind the announcements.

Accusations of Ignoring Other States

Tewari further accused the government of ignoring other states' development interests, referring to Bihar's strategic importance for the BJP's political alliances. "This government is on crutches. To keep this crutches intact, the government ignored the development interest of the other states," he added.

Punjab's Exclusion Draws Criticism

Shiromani Akali Dal MP Harsimrat Kaur Badal also voiced concern, accusing the Union Government of neglecting Punjab and its farmers. "Look at the names of the states - Bihar, which is going to elections. Only Bihar, Bihar, Bihar. There was no mention of Punjab. Farmers are sitting in protest for the past 4 years over legal guarantee for MSP. What did they announce for farmers? Makhana Board. This was an anti-farmer Budget," she said.

Mixed Reactions from BJP Leaders

While some BJP leaders like Rajiv Rudy defended the government's decisions, highlighting Bihar's longstanding need for development, others, including TMC MP Shatrughan Sinha, expressed concerns about the Budget's potential electoral motives. "This budget, kept in view of Bihar, seems like a lollipop," he remarked, while also praising the provisions for the state. Sinha also suggested that tax exemptions should have been increased to Rs 15 lakh instead of Rs 12 lakh.

Key Announcements for Bihar and Middle-Class Relief

In addition to the infrastructure projects, the Finance Minister announced a major relief for taxpayers by exempting income tax on earnings up to Rs 12 lakh. She also mentioned a special focus on the middle class, with a simplified tax regime. However, exemptions are subject to deductions under various sections of the Income Tax Act, such as Rs 1.5 lakh for home loan interest.

With ANI inputs

In televised remarks on the Budget, Modi said the government has opened up many sectors for the youth, who will drive the mission of 'Viksit Bharat' (developed India).

"This Budget is a force multiplier. This Budget will increase savings, investment, consumption and growth," the prime minister said, congratulating the finance minister and her team for presenting a "people's budget".

He said a budget usually focuses on increasing the income of the government, but the budget presented by Sitharaman seeks to put more money in the pockets of people, increase savings and make citizens partners in the development journey.

"The Budget lays a strong foundation to increase savings and make citizens partners in development," he said.

Modi said welfare measures for gig workers underscore the government's commitment to the dignity of labour.

He said the measures presented in the Budget for the manufacturing sector will allow Indian products to shine globally.

The tax relief will provide big benefits to the middle class and salaried employees.

The announcements in the Budget for farmers will revolutionise the agriculture sector and rural economy.

"In terms of reforms, many important steps have been taken in this Budget. Encouraging the private sector in nuclear energy is historic. It will ensure a big contribution of civil nuclear energy in the development of the country," the prime minister said. PTI

What's New?

1. Higher Exemption Limit: No tax on income up to ₹4 lakh, up from ₹3 lakh in the previous structure.
2. Revised Tax Slabs: Progressive tax rates from 5% to 30% based on income brackets.
3. Enhanced Rebate: Individuals earning up to ₹12 lakh (₹12.75 lakh for salaried) can avail tax benefits.
4. Savings Across Income Brackets: ₹80,000 saved at ₹12 lakh income, ₹1.1 lakh saved at ₹25 lakh income.
5. Capital Gains Excluded: The rebate applies to regular income, but capital gains will be taxed separately.

Old vs New Tax Slabs at a Glance

What This Means for You

• More Take-Home Pay: Higher exemption and lower tax rates mean more disposable income.
• Simplified Taxation: The new regime removes the need for multiple deductions, streamlining compliance.
• Middle-Class Benefits: Those earning up to ₹12 lakh pay zero tax due to rebate and lower rates.

The Bigger Picture

The government's focus on reducing the tax burden on the middle class aligns with its broader economic agenda of increasing spending power and boosting financial stability. If approved by Parliament, the new regime will take effect from April 1, 2025.

A fresh ₹10,000 crore Fund of Funds will be launched to support startups, expanding on previous government-backed investment initiatives. The credit guarantee cover for startups will also be doubled from ₹10 crore to ₹20 crore, with a moderated guarantee fee of 1% for loans in key sectors of Atmanirbhar Bharat.

The government will also introduce a national framework to promote GCCs in Tier-2 cities, enhancing talent availability, infrastructure, and industry collaboration. Experts believe this will boost India's positioning as a global tech hub, reduce regional disparities, and drive inclusive economic growth.

Startups have a reason for cheer also as a new 'Fund of Funds' with expanded scope and a fresh contribution of additional Rs 10,000 crore will be set up.

"The Alternate Investment Funds (AIFs) for startups have received commitments of more than Rs 91,000 crore. These are supported by the Fund of Funds set up with a government contribution of Rs 10,000 crore. Now, a new fund of funds, with expanded scope and a fresh contribution of another Rs 10,000 crore will be set up," she said.

Gaja Capital Managing Partner Gopal Jain said the introduction of a new Fund of Funds for AIFs, and a Center of Excellence for AI in Education are all "promising steps" toward fostering a knowledge-driven economy.

To improve access to capital, the credit guarantee cover will be enhanced for startups, from Rs 10 crore to 20 crore, with the guarantee fee being moderated to 1 per cent for loans in 27 focus sectors key for Atmanirbhar Bharat.

Bruce Keith, Co-founder CEO, InvestorAi believes that the announcement on deep tech funds, while details are awaited, needs to be viewed through the 'DeepSeek' lens of what can be done with relatively small amounts of capital when provided to agile and creative teams.

Stock indices opened with gains and traded in the positive territory during the Budget presentation. However, soon after Sitharaman completed her Budget speech in Parliament, the 30-share BSE benchmark Sensex declined 494.1 points to 77,006.47 in the late afternoon trade. The NSE Nifty went lower by 162.35 points to 23,346.05.

Later, Sensex pared losses to trade sideways at 77,509.90 while Nifty was at 23,495.30. Both benchmarks had rallied for the past four trading days.

The markets were open on Saturday due to the presentation of the Union Budget.

From the 30-share blue-chip Sensex pack, Bajaj Finserv, UltraTech Cement, Larsen & Toubro, Power Grid, Tata Steel, and State Bank of India were the major laggards.

Zomato, Maruti, ITC, Mahindra & Mahindra, and Titan were among the biggest gainers.

In a relief to the middle class, Sitharaman on Saturday exempted annual income of up to Rs 12 lakh from income tax and rejigged tax slabs as part of her reformist Budget.

Presenting her eighth straight Budget in the Lok Sabha, she laid out a blueprint for next generation reforms, including raising FDI limit in insurance sector, simplification of tax laws, cutting duties on intermediaries while providing enhanced fiscal support for welfare measures.

This she did while sticking to the fiscal consolidation roadmap that projected the fiscal deficit to come down to 4.4 per cent of the GDP in the 2025-26 financial year.

"The Union Budget largely played to our expectations, particularly with the much-needed income tax relief for the middle class, which will drive consumption and economic growth. No changes were made to Securities Transaction Tax or capital gains tax, as anticipated," Pranav Haridasan, MD and CEO, Axis Securities, said.

For the current financial year, the fiscal deficit has been pegged at 4.8 per cent of the GDP.

"The key highlight of the Budget is income tax relief for the middle class. Additionally, the government has maintained its fiscal glide path, targeting a fiscal deficit of 4.4 per cent of GDP, while emphasising ease of doing business.

"Unlike previous Budgets that focused on increasing capital expenditure, this time the priority appears to be efficient deployment of allocated funds rather than just raising allocations," Sunil Damania, Chief Investment Officer, Mojopms, said.

Asian markets are closed on Saturday due to holidays. US markets ended lower on Friday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,188.99 crore on Friday, according to exchange data.

Global oil benchmark Brent crude dipped 0.29 per cent to USD 75.67 a barrel.

Rallying for the fourth day running on Friday, the 30-share BSE benchmark ended 740.76 points, or 0.97 per cent, higher at 77,500.57. The Nifty rallied 258.90 points, or 1.11 per cent, to 23,508.40.

Agencies

While some items will become more affordable due to tax reductions, others may experience price increases due to higher duties or new taxes. Notably, the Finance Minister proposed the exemption of customs duty on life-saving drugs.

Let's take a closer look at the changes in pricing.

What's Cheaper?

• Mobile phone chargers
• Telecom equipment
• Cancer drugs
• Carrier grade internet switches
• 36 life-saving medicines exempted from basic customs duty
• Scrap of lithium-ion batteries, lead, zinc, and 12 other critical minerals
• Frozen fish, Frozen fish paste (Surimi) - Customs duty reduced from 30% to 5%
• Synthetic flavouring essences
• Leather belts, Leather shoes, Leather jackets
• Marine products
• Raw materials for manufacturing ships exempt from basic customs duty for an additional 10 years
• EV batteries
• Cobalt products

What's Costlier?

• Flat LED TVs
• Knitted fabrics

Last year, the government slashed customs duties on cancer medicines and mobile phones, lowering their prices in the retail market. Additionally, imported gold, silver, leather goods, and seafood became cheaper. Conversely, customs duties were increased by 10% on ammonium nitrate and by 25% on non-biodegradable plastics.

Why is this a big deal?

Until now, anyone paying a rent of ₹20,000 or more per month had to deduct TDS at 5 percent before paying their landlord. With the new limit raised to ₹50,000 per month, fewer individuals and businesses will need to worry about tedious tax deductions and filings.

Key Benefits

-Less Compliance Burden: Small landlords and tenants no longer need to handle TDS deductions for moderate rent amounts.

-Higher Cash Flow: Landlords earning under ₹50,000 in monthly rent will not face TDS deductions, improving liquidity.

-Simplified Tax Filing: Fewer transactions will be subjected to TDS, making tax filing easier for both tenants and property owners.

-Boost to Rental Market: Reduced compliance requirements can encourage more property investments and rental transactions.

Who Gains the Most?

1. Middle-Class Tenants and Homeowners: Tenants paying moderate rent now avoid unnecessary paperwork and deductions.

2. Senior Citizens and Small Landlords: Many rely on rental income—this change reduces tax deductions at source, ensuring better financial security.

3. Small Businesses: Startups and MSMEs renting small office spaces will find it easier to manage finances without extra compliance hurdles.

The Bigger Picture

Alongside this TDS revision, Budget 2025 also introduced:

-Senior Citizens' TDS-Free Interest Income Limit Doubled – From ₹50,000 to ₹1 lakh.

-TCS on LRS Remittances Eased – Threshold raised from ₹7 lakh to ₹10 lakh for tax collection on foreign remittances.

-Simplified Tax Regime – A new Income Tax Bill promises reduced complexity and better compliance.

By raising the TDS threshold, it eases tax burdens, boosts the rental economy, and makes tax compliance simpler and more taxpayer-friendly.

Presenting her eighth straight Budget in the Lok Sabha, Sitharaman laid out a blueprint for next generation reforms including raising FDI limit in insurance sector, simplification of tax laws, cutting duties on intermediaries while providing enhanced fiscal support for welfare measures.

The social media was quick to react to the announcement, with users calling the move a 'brave one' and a 'major relief for middle class'.

A user wrote, "A BIG RELIEF FOR MIDDLE CLASS wooow i will buy car NO INCOME TAX payable on income up to ₹12 lakh under the new regime!!". Meanwhile, another user wrote, "Working Middle Class People Right Now !!" However, some users accused the government of creating confusion among the public, stating that their only hope lies in the revised income tax bill.

As per the rejig, for people earning more than Rs 12 lakh per annum, there will be nil tax for income up to Rs 4 lakh, 5 per cent for income between Rs 4 and 8 lakh, 10 per cent for Rs 8-12 lakh, 15 per cent for Rs 12-16 lakh.

A 20 per cent income tax will be levied on income between Rs 16 and 20 lakh, 25 per cent on Rs 20-24 lakh and 30 per cent above Rs 24 lakh per annum.

A tax payer in the new regime with an income of Rs 12 lakh will get a benefit of Rs 80,000 in tax. A person having income of Rs 18 lakh will get a benefit of Rs 70,000 in tax.

A person with an income of Rs 25 lakh gets a benefit of Rs 1.10 lakh.

Revised tax slabs
The revamped income tax slabs will be as follows: For those earning more than Rs 12 lakh, the nil tax threshold will apply up to Rs 4 lakh. A 5 per cent tax rate will be levied on income between Rs 4 lakh and Rs 8 lakh, 10 per cent for Rs 8-12 lakh, and 15 per cent for incomes between Rs 12-16 lakh. A 20 per cent tax rate will be imposed on income between Rs 16 lakh and Rs 20 lakh, 25 per cent for Rs 20-24 lakh, and 30 per cent for earnings above Rs 24 lakh per annum.

This overhaul of the tax structure is designed to ease the financial burden on the middle class, potentially boosting household consumption, savings, and investment.

What budget document says about new tax regime
To tax payers upto Rs 12 lakh of normal income (other than special rate income such as capital gains) tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them. The total tax benefit of slab rate changes and rebate at different income levels can be illustrated with examples. A tax payer in the new regime with an income of 12 lakh will get a benefit of Rs 80,000 in tax (which is 100% of tax payable as per existing rates). A person having income of 18 lakh will get a benefit of Rs 70,000 in tax (30% of tax payable as per existing rates). A person with an income of Rs 25 lakh gets a benefit of Rs 1,10,000 (25% of his tax payable as per existing rates).

Key changes

FM Sitharaman also announced several tax-related reforms:

• TDS rationalisation: Tax deduction at source (TDS) rates will be rationalised, and the tax deduction limit for senior citizens has been doubled to Rs 1 lakh.
• Updated return filing: The time limit to file an updated return has been extended from two years to four years.
• Liberalised Remittance Scheme (LRS): The TDS collection threshold for remittances under LRS has been increased from Rs 7 lakh to Rs 10 lakh.
• TDS on rent: The annual threshold for TDS on rent has been raised from Rs 2.4 lakh to Rs 6 lakh.
• Decriminalisation of TCS delays: Delays in payment of tax collected at source (TCS) up to the due date will no longer be criminal offences.
• TCS on education loans: TCS on remittances for education loans has been waived.
• National Savings Scheme (NSS): Withdrawals from NSS accounts on or after August 2024 will be exempt from tax.

Finer details of tax proposals are available in Budget document.

Bihar, currently ruled by the National Democratic Alliance (NDA), will go to polls later this year.

Presenting the Budget in the Lok Sabha, the finance minister also announced that the Centre will set up a National Institute of Food Technology, Entrepreneurship, and Management in Bihar, besides facilitating greenfield airports in the state to meet future needs.

"A Makhana Board will be established in Bihar to improve production and processing of the nut," Sitharaman said in her Budget speech.

She also said the Centre will provide financial support to the state for the western Kosi canal, benefiting 50,000 hectares in the Mithilanchal region.

The Centre will create additional infrastructure in five IITs and provide support for enhancing the capacity of IIT Patna.

Union minister and Lok Jan Shakti Party (Ram Vilas) chief Chirag Paswan hailed the budgetary announcements.

"Establishment of the National Institute of Food Technology, Entrepreneurship and Management in Bihar will strengthen food processing activities in the entire eastern region and increase the income of farmers by improving the quality of their produce," Paswan posted on X.

JD (U) working president Sanjay Jha hailed the announcement of setting up of a Makhana Board in Bihar, saying it will unlock new opportunities for the farmers and entrepreneurs.

Stating that it will turn out to be a gamechanger for the region's agricultural economy, Jha said in a post on X, "The initiative will enhance production, processing, value addition, and marketing, driving economic growth in Mithila and Bihar."

PTI

Presenting her eighth consecutive budget, Sitharaman said under the Jal Jeevan Mission 15 crore households, representing 80 per cent of India's rural population, have been provided access to potable tap water connection.

"To achieve 100 per cent coverage I am pleased to announce extension of this mission till 2028 with an enhanced total outlay," she said. She further said that the mission's focus will be on quality of infrastructure and Operation and Maintenance of rural piped water supply schemes through jan bhagidhari.

"Separate MoUs will be signed with states and UTs to ensure sustaintable and citizen centric water services delivery," she said. Earlier, the deadline for providing tap water connection to all rural household was 2024. | PTI

In her Budget speech, Sitharaman highlighted agriculture, MSMEs, investments, and exports as the key drivers of growth. Reacting to this, Ramesh said, "The FM spoke of four engines: Agriculture, MSMEs, Investment, and Exports. So many engines that the Budget has been completely derailed."

In another post, he criticized the government's move to amend the Civil Liability for Nuclear Damage Act, 2010, alleging that the BJP had previously weakened the law under Arun Jaitley and was now changing it further to appease former U.S. President Donald Trump.

Presenting her record eighth consecutive Budget, Sitharaman also announced that all those states going ahead with power reforms would be eligible for additional borrowing equal to 0.5 per cent of their GSDP (Gross State Domestic Product).

She said, "Power sector reforms, we will incentivise electricity distribution reforms and augmentation of intra-state transmission capacity by states. This will improve the financial health and capacity of electricity companies. Additional borrowing of 0.5 per cent of GSDP will be allowed to states contingent on these reforms."

Under the Nuclear Energy Mission, she added that Viksit Bharat Development of at least 100GW by 2047 is essential for our energy transition efforts.

For an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and Civil Liability for Nuclear Damage Act will be taken up, she said.

She further announced that a Nuclear Energy Mission for research and development of small modular reactors with an outlay of Rs 20,000 crore will be set up.

Addressing tax reforms, Sitharaman stated, "I come to my proposal on personal income tax towards the end. TDS and TCS rationalization for easing difficulties. I propose to rationalize tax deduction at source (TDS) by reducing the number of rates and thresholds above which TDS is deducted."

She further announced that the threshold amounts for tax deduction would be increased to provide better clarity and uniformity. "The limit for tax deduction on interest for senior citizens is being doubled from the present Rs 50,000 to Rs 1 lakh. Similarly, the annual limit of Rs 2.40 lakh for TDS on rent is being increased to Rs 6 lakh," she added. IANS

In her budget speech the FM mentioned focussed on expanding airport infrastructure in the country for a solid foundation of overall sound aviation ecosystem. Going ahead, the FM announced a modified UDAN scheme under which as many as 120 new airports will be connected in a span of 10 years with a target of accommodating 4 crore additional passengers.

The scheme will also support helipads and smaller airports in hilly aspirational and Northeast regional districts. Udan has enabled 1.5 crore middle class people to meet their aspirations for speedier travel, FM further added.

Additionally, Bihar will get new greenfield airports along with the expansion project of the Patna airport. These facilities are expected to cater to the state's future aviation needs. Under the 'UDAN' scheme, as many as 88 small cities will be connected via airports, the finance minister said.

Presenting the Union Budget 2025-26, Sitharaman said the government will also facilitate greenfield airports in Bihar to meet future needs of the state.

Besides, support will be provided for the western Kosi canal, benefiting 50,000 hectares in the Mithilanchal region in Bihar, she added.

The government will also encourage minor minerals through best practices and institutions of state mining, she added.

Sitharaman also noted that 100 GW of nuclear power is essential for India's energy transition. PTI

"No Income Tax payable up to an income of Rs 12 lakh. Slabs and rates being changed across the board to benefit all tax-payers," announces FM . She further says, "...I propose to revise tax rate structures as follows: 0 to Rs 4 Lakhs - nil, Rs 4 Lakhs to Rs 8 Lakhs - 5%, Rs 8 Lakhs to Rs 12 Lakhs - 10%, Rs 12 Lakhs to Rs 16 Lakhs - 15%, Rs 16 Lakhs to Rs 20 Lakhs - 20%, Rs 20 Lakhs to Rs 24 Lakhs - 25% and above Rs 24 Lakhs - 30%. To taxpayers up to Rs 12 Lakhs of normal income other than special rate income such as capital gains, tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them..."

Finance Minister also has said that MSMEs would get enough boost this time as the investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively. "This will give them the confidence to grow and generate employment for our youth”, she said.

Quotes from her speech

• "To improve access to credit, the credit guarantee cover will be enhanced. For micro and small enterprises from Rs 5 to Rs 10 crores leading to additional credit of Rs 1.5 Lakh Crores in the next 5 years. For startups, from Rs 10 Crores to Rs 20 Crores with the guarantee fee being moderated to 1% for loans in 27 focus sectors which are important for Aatmanirbhar Bharat. For well-run exporter MSMEs, for term loans up to Rs 20 Crores. Also for the micro-enterprises, we will introduce customised credit cards with a Rs 5 Lkah limit for micro-enterprises registered on Udyam portal."
• "The govt will setup an Urban Challenge Fund of Rs 1 lakh crore to implement the proposals to make cities as growth hubs.."
• "The fiscal deficit is estimated to be 4.4% of the GDP..."
• "I am pleased to announce the extension of Jal Jeevan Mission until 2028 with an enhanced total outlay,"
• . "The FDI limit for the Insurance Sector will be raised from 74 to 100 percent. This enhanced limit will be available for those companies which invest the entire premium in India. The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified."
• "....Inspired by the success, a modified UDAN scheme will be launched to enhance regional connectivity to 120 new destinations and carry 4 crore additional passengers in the next 10 years. The scheme will also support helipads and smaller airports in hilly,

• "The revised estimate of the total receipts other than borrowings is Rs 31.47 lakh crore of which the net tax receipts are Rs 25.57 lakh crore..."
• "In the budget of July 2024, the delay of the payments of the TDS up to the due date of filing statements was decriminalised; I propose the same from the TCS provisions as well..."
• "Those suffering from Cancer, chronic or other severe diseases; I propose to add 36 life-saving drugs and medicines to the list of medicines fully exempted from basic customs duty."
• Govt to bring framework to unlock potential marine sector with focus on Andaman and Lakshadweep
• "I propose to exempt social welfare surcharge on 82 tariff lines that are as subject to cess..."
• "As a part of a comprehensive review of customs rates structure announced in the July 2024 budget, I propose to remove 7 tariff rates - this is over and above the tariffs removed in the 2023-24 budget..."

Revised income tax slabs

The revised tax rates under the new regime are as follows:

• Rs 0 - 4,00,000: Nil
• Rs 4,00,001 - 8,00,000: 5%
• Rs 8,00,001 - 12,00,000: 10%
• Rs 12,00,001 - 16,00,000: 15%
• Rs 16,00,001 - 20,00,000: 20%
• Rs 20,00,001 - 24,00,000: 25%
• Above Rs 24,00,000: 30%

Tax rebate benefits at different income levels

Taxpayers earning up to Rs 12 lakh will benefit from a full tax rebate, ensuring no tax liability. This rebate, coupled with the revised slab rates, results in significant tax savings across various income brackets:

• A taxpayer earning Rs 12 lakh in the new regime saves Rs 80,000, which is 100% of the tax payable under the previous rates.
• A taxpayer earning Rs 18 lakh receives a benefit of Rs 70,000, covering 30% of their earlier tax liability.
• A taxpayer with Rs 25 lakh in income gains Rs 1,10,000, reducing their tax burden by 25%.

The Budget Session of Parliament commenced on Friday and will take place in two phases. The first phase, from January 31 to February 13, will be followed by the second phase from March 10 to April

She said the fund will be used to implement the proposals for cities as growth hubs, and creative redevelopment.

Sitharaman also announced measures for electricity distribution and improving the financial health of DISCOMS (distribution companies).

Additional borrowing of 0.5 per cent of state GDP to be allowed to strengthen electricity distribution and transmission companies, the finance minister said, adding that with a corpus of Rs 25,000 crore, a Maritime Development fund would be set up for distributing support and promoting competition. PTI

The Jan Vishwas (Amendment of Provisions) Bill, 2023, passed by Parliament, aims to decriminalize minor offenses, reduce compliance burdens, and promote a business-friendly environment in India. (More details awaited)

Key announcements for Bihar include:

• National Institute of Food Technology: A specialised institute will be set up in Bihar to strengthen the food processing industry.
• Western Kosi Canal: Financial support will be extended to benefit 50,000 hectares in the Mithilanchal region.
• IIT Patna Expansion: The prestigious institute will see a major expansion to enhance higher education in the state.
• Greenfield Airports: New airports will be established in Bihar to improve connectivity.
• Makhana Board: A dedicated board will be set up to enhance production, processing, and marketing of Makhana, supporting local farmers.

Additionally, Bihar's Deputy CM Samrat Chaudhary has urged the Centre to fund high dams to mitigate floods and requested new high-speed corridors and Kendriya Vidyalayas. Last year's budget had already allocated ₹2,600 crore for expressways, ₹11,500 crore for flood control, and ₹2,400 MW of new power capacity.

With Bihar playing a crucial role in NDA's electoral strategy, these budgetary provisions signal a strong push for the state's infrastructure, agriculture, and education.

The enhanced FDI limit will apply to those who invest the entire premium in India. The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified, said FM.

The Foreign Direct Investment (FDI) limit for insurance companies currently stands at 74%, while intermediaries already benefit from relaxed restrictions. The sector comprises 24 life insurers, 26 general insurance providers, six standalone health insurers, and a single reinsurer—General Insurance Corporation.

The Economic Survey 2024-25, released on Friday, emphasized the need for India to take all necessary measures to attract FDI and enhance its investment appeal.

Sitharaman said that over the past 10 years, the government has implemented several reforms for the convenience of taxpayers, including faceless assessment.

Sitharaman also mentioned the government coming out with taxpayers' charter, faster returns process and almost 99 per cent of the income returns being on self-assessment.

The government will introduce new Income Tax bill next week in Parliament to take forward "trust first, scrutinise later" concept.

The bill is expected to simplify the current Income Tax (I-T) law and make it easier to comprehend.

Pursuant to the Budget announcement by Sitharaman for a comprehensive review of the Income-tax Act, 1961, the CBDT had set up an internal committee to oversee the review and make the Act concise, clear, and easy to understand, which will reduce disputes, litigation, and provide greater tax certainty to taxpayers. Also, 22 specialised sub-committees have been established to review the various aspects of the Income Tax Act. PTI

Also, an asset monetisation plan will be launched for 2025-30 period to infuse Rs 10 lakh crore capital in new projects.

Presenting the Budget for 2025-26, she also announced an outlay of Rs 500 crore for setting up a centre of excellence in artificial intelligence for education.

Further, the Budget outlay for Jal Jeevan Mission is being enhanced to achieve 100 per cent coverage, she added.

Sitharaman also said that urban sector reforms relating to governance, urban land and planning will be incentivised. PTI

In another major reform move, the minister announced that the Foreign Direct Investment (FDI) in the insurance sector will be increased to 100 per cent from 74 per cent.

Presenting the Budget for 2025-26, Sitharaman said that over the past 10 years, the government has implemented several reforms for the convenience of taxpayers, including faceless assessment.

Sitharaman also mentioned the government coming out with taxpayers' charter, faster returns process and almost 99 per cent of the income returns being on self-assessment.

The government will introduce new Income Tax bill next week in Parliament to take forward "trust first, scrutinise later" concept.

The bill is expected to simplify the current Income Tax (I-T) law and make it easier to comprehend.

Pursuant to the Budget announcement by Sitharaman for a comprehensive review of the Income-tax Act, 1961, the CBDT had set up an internal committee to oversee the review and make the Act concise, clear, and easy to understand, which will reduce disputes, litigation, and provide greater tax certainty to taxpayers. Also, 22 specialised sub-committees have been established to review the various aspects of the Income Tax Act.

In her Budget speech on Saturday, Sitharaman said the government will also facilitate the upgradation of air cargo warehousing for high-value perishable horticulture items as well as initiate measures to deepen and expand services of India Post payments bank in rural areas.

Sitharaman added that these measures would not only ease access to essential medicines but also improve their availability, thereby helping to meet the growing healthcare demands. She also outlined the government's intention to help the sector with the "needful" actions to address accessibility and affordability issues in the pharmaceutical industry.

Expansion of Patient Assistance Programmes
In a move to further support financially distressed patients, the Finance Minister waived off customs duties on medicines supplied under Patient Assistance Programmes (PAPs). In a positive development, 13 new PAPs have been introduced, expanding access to essential drugs for underprivileged sections of society.

Boost to medical tourism with 'Heal in India' campaign
The Union Budget also saw an important initiative for medical tourism with the announcement of a 'Heal in India' campaign in collaboration with the private sector. This campaign aims to position India as a leading global destination for healthcare. To further facilitate medical tourism, visa procedures for patients seeking treatment in India have been simplified, enhancing the sector's growth prospects.

India's medical tourism industry is estimated to be worth around $9 billion, with the country currently ranked 10th on the Global Medical Tourism Index. The rise of AYUSH (Ayurveda, Yoga, Unani, Siddha, and Homeopathy) systems has contributed to a substantial increase in medical tourism in recent years. In 2023, the introduction of medical visa provisions has further strengthened India's appeal as a health and wellness hub.

Increased healthcare infrastructure
In addition to the customs duty exemptions, the FM also announced the addition of 10,000 new seats in medical colleges, along with the establishment of daycare cancer centres in district hospitals, to improve healthcare accessibility across the country.

In her record eighth consecutive Budget, Sitharaman also introduced measures to incentivise states undertaking power reforms. States implementing electricity distribution reforms and augmenting intra-state transmission capacity will be eligible for additional borrowing equal to 0.5% of their Gross State Domestic Product (GSDP).

She explained, "Power sector reforms, we will incentivise electricity distribution reforms and augmentation of intra-state transmission capacity by states. This will improve the financial health and capacity of electricity companies. Additional borrowing of 0.5% of GSDP will be allowed to states contingent on these reforms."

Development of small modular reactors
Under the Nuclear Energy Mission, Sitharaman stressed that the development of at least 100GW of nuclear power by 2047 was crucial for the country's energy transition. She confirmed that the amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act would pave the way for a robust partnership with the private sector.

Additionally, the mission aims to establish small modular reactors, with five units expected to be operational by 2033.
Currently, India has a total power generation capacity of 462GW, including 8GW from nuclear power