CTC To In Hand Salary Budget 2025

CTC To In Hand Salary Budget 2025

The Union Budget for the fiscal year 2025-2026, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, introduces several key measures aimed at stimulating economic growth, supporting the middle class, and promoting various sectors.

Income Tax Reforms:

• Increased Tax Exemption Limit: The income tax exemption threshold has been raised to ₹12 lakh, meaning individuals earning up to this amount are not liable to pay income tax.  Source  indiabudget.gov.in

• Revised Tax Slabs: For incomes above ₹12 lakh, the new tax rates are structured as follows:

  • ₹12 lakh to ₹16 lakh: 10%
  • ₹16 lakh to ₹20 lakh: 15%
  • ₹20 lakh to ₹24 lakh: 20%
  • Above ₹24 lakh: 25%

  This restructuring aims to reduce the tax burden on the middle class and increase disposable income. Source  indiabudget.gov.in

Agricultural Initiatives:

• Prime Minister Dhan-Dhaanya Krishi Yojana: A new scheme introduced to enhance agricultural productivity and support farmers.

• Enhanced Credit for Farmers: The budget proposes facilitating short-term loans of up to ₹5 lakh for approximately 7.7 crore farmers, fishermen, and dairy farmers through the Kisan Credit Card (KCC) scheme.

• Pulses Production Mission: A six-year mission focusing on increasing the production of pulses such as Tur, Urad, and Masoor to reduce dependence on imports.  Source  indiabudget.gov.in

Support for Science and Innovation:

• Research and Development Allocation: An allocation of ₹20,000 crore has been made to implement a private sector-driven research, development, and innovation initiative.

• PM Research Fellowship: The government plans to provide 10,000 fellowships for technological research in premier institutions like IITs and IISc to foster innovation. Source  indiabudget.gov.in

Export Promotion and Manufacturing Support:

• Incentives for Electronics and EVs: Exemptions are granted for components such as open cells used in LED/LCD TVs and capital goods for lithium-ion batteries used in mobile phones and electric vehicles, aiming to boost domestic manufacturing.

• Support for Shipbuilding and Repairs: A 10-year exemption is provided on goods used for shipbuilding and ship-breaking activities. Additionally, the time limit for exporting railway goods imported for repairs has been extended. source  indiabudget.gov.in

Healthcare and Pharmaceuticals:

• Tax Exemptions on Lifesaving Drugs: The budget fully exempts 36 lifesaving drugs and medicines used in treating cancer, rare diseases, and chronic conditions from Basic Customs Duty (BCD). Furthermore, 37 medicines under Patient Assistance Programmes have been exempted from BCD when supplied free to patients. Source pib.gov.in

Infrastructure and Capital Spending:

• Capital Expenditure: The government has budgeted for a modest increase in capital spending, which will rise to ₹11.21 trillion in 2025-26 compared to a revised ₹10.18 trillion in the current year. This is aimed at balancing revenue losses from tax cuts while continuing to invest in infrastructure development.  Source  reuters.com