10 Things for Common Man in Union Budget 2025

Finance Minister Nirmala Sitharaman presented her 8th consecutive Union Budget on Saturday. Sitharaman announced a major rejig of tax slabs, providing long-awaited relief to the middle class. Let’s see what Union Budget 2025 has in it for the common man:

1. INCOME TAX

People earning up to ₹12 lakh will not have to pay any income tax under the new tax regime.

Further, due to standard deduction of ₹75,000, individuals will not have to pay tax for income up to ₹12.75 lakh.

Earlier, income up to ₹7 lakh was exempt from tax.

2. MEDICAL RELIEF

36 life-saving drugs have been added to the list of medicines which are fully exempt from Basic Customs Duty. This includes drugs used to treat leukemia and asthma.

Moreover, several cancer-related drugs like Pegylated Liposomal Irinotecan are also on the list.

3. TAX RETURN DEADLINE

The deadline to file updated tax returns has been increased to 4 years from the current deadline of 2 years.

4. RENT

Annual tax deducted at source (TDS) limit of ₹2.40 lakh on rent has been increased to ₹6 lakh. In particular, this will benefit small landowners who receive rent of up to ₹6 lakh per year.

Earlier, TDS would apply if landlords earned rent of ₹2.40 lakh or more in a year.

5. WHAT HAS BECOME CHEAPER?

Electric vehicles, mobile phones, medicines, medical equipment and leather goods have become cheaper. Further, production of TVs has become cheaper.

6. WHAT HAS BECOME COSTLIER?

Knitted fabrics and interactive flat panel display have become costlier as custom duties on these items have been increased.

7. RELIEF FOR SENIOR CITIZENS

Senior citizens can benefit from tax-free withdrawals from National Savings Scheme.

Moreover, the government has reduced the taxable income of senior citizens. The tax deduction limit on their interest income has been doubled from ₹50,000 to ₹1 lakh.

8. REMITTANCE

The limit for collecting Tax Collected at Source (TCS) on Liberalised Remittance Scheme (LRS) transactions has been increased from ₹ 7 lakh to ₹10 lakh. Further, the government exempted TCS on payments made for education purposes.

9. WOMEN ENTREPRENEURS AND FARMERS

5 lakh first-time entrepreneurs who are from ST/SC category will receive up to ₹2 crore during the next 5 years.

Farmers can expand their agricultural activities as Farmers Credit Card limit is now ₹5 lakh. Earlier, the limit was ₹3 lakh.

10. EDUCATION

The government is targeting to add 1.1 lakh medical seats in 10 years, an increase of 130%. The government aims to achieve this by adding 10,000 more seats next year and 75,000 new seats in the next 5 years.