The Finance minister Nirmala Sitaraman, will present the union budget on 1st February, 2025. The expectations of the common people are high on the Union Budget 2025. There is a lot of discussion about changes in the income tax structure, increased allocation for public welfare schemes and new benefits for MSMEs and farmers. Let's find out what changes are expected from the Union Budget 2025.


Budget 2025 Expectations: Tax Exemptions, Welfare Schemes, Startup and Tax Benefits

Possible changes in the income tax structure (Income Tax Slab 2025 Updates)

To provide relief to taxpayers, the income tax slab and tax deduction limit may be increased in the budget this time. According to experts:
  1. Standard Deduction: It may be increased from the current rupees 75,000 to rupess1,00,000.
  2. New Income Tax Slab 2025: There is currently a 20% tax on income of 12-15 lakhs, which is likely to be increased up to 20 lakhs.
  3. 80C Tax Deduction: The limit of rupees 1.5 lakhs per year may be increased up to rupees 2 lakhs.

Budget increase in welfare schemes (Welfare Schemes in Budget 2025)

The allocation for the following government schemes may increase in the 2025 budget:
  1. Pradhan Mantri Awas Yojana (PMAY): Allocation will be increased for increasing housing facilities in cities and villages.
  2. Ayushman Bharat (PMJAY): Free medical services may be provided to more people.
  3. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): The amount of subsidy to farmers may be increased in installments.
  4. Pradhan Mantri Gram Sadak Yojana (PMGSY): Additional budget may be allocated for the construction of rural roads.

Facilities for MSME and Startups (MSME & Startup Budget 2025)

Special tax breaks, easy loan facilities and new grant schemes may be launched for small and medium enterprises (MSME) and startup entrepreneurs. In particular:
  1. MSME Loan Scheme: Easy business loans will be available at low interest rates.
  2. Startup Tax Benefit: Tax exemption period may be extended by another 3-5 years.
  3. New Enterprise Grants: Special grants may be allocated for technology and manufacturing industries.

Conclusion: What can Budget 2025 bring for the common man?

Budget 2025 can help in providing relief to taxpayers, increasing subsidies for farmers and expanding MSME businesses. The increase in income tax exemption limits and new policies are expected to play a positive role in the financial development of the common man.

For Official Updates follow: https://www.indiabudget.gov.in/