Introduction

The Union Budget 2025, presented by the Finance Minister in Parliament, marks a significant turning point for India’s economic strategy in a pre-election year. With a clear focus on fiscal consolidation, infrastructure push, green economy, and digitization, Budget 2025 balances growth ambitions with social welfare.

At [Your CA Firm Name], our expert team has decoded the Budget 2025 to bring you a comprehensive analysis of its key proposals and what they mean for individuals, businesses, and the economy at large.

Key Highlights of Budget 2025

1. Direct Tax Proposals

  • No change in personal income tax slab rates.
  • Increase in standard deduction for salaried individuals from ₹50,000 to ₹75,000.
  • Presumptive taxation limit raised for small businesses and professionals under Sections 44AD and 44ADA.
  • Introduction of a “faceless rectification” scheme to improve transparency and efficiency in assessments.

2. Corporate Taxation

  • No change in base corporate tax rates.
  • Startups incorporated till March 2025 eligible for tax holiday extension up to 3 years.
  • MAT rate reduced from 15% to 12% for manufacturing companies.

3. GST & Indirect Taxes

  • Continued efforts for simplification and rate rationalization of GST.
  • GST Council to consider bringing petroleum products under GST ambit.
  • Customs duty changes to encourage domestic manufacturing in electronics, EVs, and semiconductors.

4. Infrastructure & Capital Spending

  • Capital expenditure increased by 18% year-on-year.
  • Special focus on highways, green energy corridors, and railway modernization.
  • Public-private partnership model expanded in urban infrastructure projects.

5. Digital India & AI Push

  • ₹12,000 crore allocated for AI research, semiconductors, and digital public infrastructure.
  • A new AI regulatory framework to be drafted under NITI Aayog.

6. Social Sector & Welfare

  • Increase in allocation to rural employment and PM Awas Yojana.
  • Health budget up by 14%, with special schemes for maternal health and digital health records.
  • Focus on youth skilling and MSME credit support.