The Telangana Government, India, has unveiled its ₹3.04 lakh crore budget for the fiscal year 2025-26, marking a 5% increase from the previous year. The budget focuses on welfare, agriculture, and infrastructure while highlighting the state’s growing reliance on borrowings.

The Telangana Government has unveiled a ₹3.04 lakh crore budget for the fiscal year 2025-26. This marks the first time the state’s budget has crossed the ₹3 lakh crore threshold since Telangana’s formation. The financial plan, presented by Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka, prioritizes welfare, agriculture, and infrastructure while relying heavily on borrowings.

The budget includes a revenue expenditure of ₹2.26 lakh crore and a capital expenditure of ₹36,504 crore, reflecting a 5% rise from the previous year’s ₹2.91 lakh crore allocation. Despite the increase, this growth rate is moderate compared to past budgets.

Reliance on Borrowings and Fiscal Outlook

Telangana’s budget highlights its dependence on borrowings, estimated at ₹70,000 crore, including ₹64,539 crore from open market sources. The fiscal deficit stands at ₹54,009 crore, with a primary deficit of ₹34,640 crore. Despite this, the budget projects a surplus of ₹2,738 crore.

The government has also allocated ₹21,221 crore to the Energy Department, focusing on completing the Yadadri Thermal Power Plant and introducing an electricity ambulance service for improved power distribution.

Key Allocations: Welfare and Development Priorities

A significant portion of the budget is directed toward welfare initiatives, including:

• Backward Classes Welfare: ₹11,405 crore
• Scheduled Castes Welfare: ₹40,232 crore
• Scheduled Tribes Welfare: ₹17,169 crore
• Total Welfare Allocations: ₹69,000 crore

Other major allocations include:

• Agriculture: ₹24,439 crore
• Panchayat Raj: ₹31,605 crore
• Education: ₹23,108 crore

The budget also prioritizes the Congress party’s six guarantees, with ₹56,084 crore earmarked for their implementation. These include Rythu Bharosa (₹18,000 crore), Cheyutha (₹14,861 crore), and Indiramma housing (₹12,571 crore). The Mahalakshmi scheme, which provides free bus travel for women, has been allocated ₹4,305 crore.

Economic Growth and Per Capita Income

Telangana’s Gross State Domestic Product (GSDP) at constant prices is estimated at ₹16.12 lakh crore, with a growth rate of 10.1%. The state’s per capita income has reached ₹3.79 lakh, 1.8 times higher than the national average of ₹2.05 lakh.

Government’s Vision for Inclusive Development

Deputy Chief Minister Mallu Bhatti Vikramarka emphasized that the budget reflects the government’s commitment to social equality and economic progress. “This budget is designed to distribute resources fairly and build a system free from inequalities,” he stated. The state government aims to support farmers, entrepreneurs, students, and women through well-structured policies that align with Telangana’s economic aspirations.

With increased expenditure on welfare, infrastructure, and power, the budget reflects the government’s vision to drive inclusive growth while managing fiscal challenges.

Read the full article here: ₹3.04 Lakh Crore Budget Presented by Telangana for 2025-26 — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).

The Indian Union Budget 2025 prioritizes growth through investments, tax reforms, and focused attention on agriculture, MSMEs, exports, and innovation to drive the economy forward

The Indian government unveiled its Union Budget for 2025, prioritizing economic growth through targeted investments, tax reforms, and enhanced focus on key sectors such as agriculture, MSMEs (Micro, Small, and Medium Enterprises), exports, and innovation. The budget addresses the growing economic expectations of the nation, presenting a comprehensive plan to ensure broad-based development across all sectors of society.

The strategic pillars of the budget are centered on people, economy, and innovation. The government’s focus on increasing disposable income is expected to spur growth in consumption, savings, and investments. Special emphasis has been placed on Garib (Poor), Yuva (Youth), Annadata (Farmers), and Nari (Women) to ensure inclusive growth across various sections of society.

Key Areas of Focus in the 2025 Budget:

• Agriculture & MSMEs: The budget provides for targeted measures to support the agriculture sector, which remains a cornerstone of India’s economy. It aims to boost rural income, support farmers, and enhance agricultural infrastructure. MSMEs, which form the backbone of India’s economy, will also benefit from easier access to credit and investment.
• Tax Reforms: The government has introduced significant tax reforms aimed at simplifying the tax structure, offering relief to both businesses and individuals. These reforms are expected to increase disposable income, stimulate spending, and encourage investment in the economy.
• FDI Limits & Investment Measures: The budget proposes raising Foreign Direct Investment (FDI) limits to attract more international investments into India. Interest-free loans to states are also included to boost infrastructure development, which will, in turn, create more opportunities for both domestic and foreign investors.
• Infrastructure & Innovation: The government’s focus on building world-class infrastructure and promoting innovation is expected to make India more competitive globally. Investments in digital infrastructure, smart cities, and technology advancements are part of this long-term strategy.
• Youth & Women Empowerment: Recognizing the importance of human capital, the budget outlines measures to equip the youth with the necessary skills and create job opportunities. Women’s empowerment remains a key focus, with provisions for their inclusion in economic growth and development.

Despite the challenges posed by geopolitical tensions and global economic uncertainties, the Indian government remains committed to steering the country towards long-term sustainable growth. By focusing on innovation, investment, and tax reforms, the 2025 Union Budget sets a clear path for economic recovery and prosperity.

Read the full article here: Investments and Tax Reforms Take Center Stage in India’s Budget 2025 — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).

The Union Budget 2025 introduced significant reforms to India’s real estate sector, including an increase in the tax deducted at source (TDS) limit on rent to ₹6 lakh annually. This move is expected to ease tax burdens and stimulate real estate demand. Following the announcement, the Nifty Realty index surged nearly 3%, with companies like Prestige Estates, Phoenix Mills, Macrotech Developers, and Sobha experiencing notable gains. The budget also introduced measures to promote urban development and revitalize stalled housing projects, aiming to boost homeownership and improve rental market efficiency.

The Indian real estate sector received a significant boost from the Union Budget 2025, leading to a nearly 3% surge in the Nifty Realty index. A key highlight was the increase in the tax deducted at source (TDS) limit on rent to ₹6 lakh annually, a move anticipated to ease tax burdens and stimulate real estate demand.

Following the budget announcement, real estate stocks experienced strong gains. Prestige Estates led the charge, soaring nearly 10% to an intraday high of ₹1,490.80. Other notable performers included Phoenix Mills, which rose 5.5%, and Macrotech Developers and Sobha, which gained 4.8% and 4.6%, respectively. DLF, Godrej Properties, Raymond, and Oberoi Realty also advanced over 2% each, reflecting investor optimism about the sector’s growth prospects.

While the affordable housing sector saw fewer direct benefits, the budget is overall pro-growth, infrastructure-driven, and investment-oriented. The focus on middle-class relief, urban development, and connectivity is expected to stimulate real estate demand across various segments, making it an overall progressive and impactful budget.

Key Budget Announcements:

• Increased TDS Limit: The TDS threshold on rent has been raised from ₹2.4 lakh to ₹6 lakh annually. This revision is expected to reduce tax compliance burdens, improve liquidity for landlords, and make the rental market more efficient.
• Tax Exemption for Self-Occupied Properties: Homeowners can now claim tax exemptions on two self-occupied properties, up from one previously. This move is expected to encourage second-home investments, particularly in Tier 2 and 3 cities, promote homeownership, and ease tax pressures on the middle class.
• Urban Development Initiatives: The creation of a ₹1 lakh crore Urban Challenge Fund is set to enhance infrastructure, unlock real estate potential, and transform cities into major growth hubs. This initiative will facilitate planned urbanization and attract significant real estate investments.
• Revival of Stalled Housing Projects: An allocation of ₹15,000 crore to the SWAMIH Fund aims to revive stalled residential projects and ensure the completion of over 1 lakh pending units. This funding will provide much-needed relief to homebuyers, especially in the National Capital Region (NCR), and restore confidence in the housing market.

Overall, the Union Budget 2025 has delivered a positive outlook for the real estate sector, with key measures that boost homeownership, improve rental market efficiency, and promote urban development. While the affordable housing segment did not receive significant direct incentives, the budget remains growth-oriented and investment-focused, setting the stage for long-term real estate expansion in India.

Read the full article here: Budget 2025: Positive Reforms Drive Growth in Indian Real Estate — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).

On February 1, 2025, shares of state-owned Oil Marketing Companies (OMCs) in India, including Hindustan Petroleum Corporation Ltd. (HPCL), Bharat Petroleum Corporation Ltd. (BPCL), and Indian Oil Corporation Ltd. (IOC), declined by up to 5%. This downturn followed the Union Budget 2025 announcement, which reduced the liquefied petroleum gas (LPG) subsidy allocation for the financial year 2025-26 to ₹12,100 crore, down from ₹14,700 crore in the previous year. The budget also did not provide the anticipated compensation for OMCs selling LPG below market rates, leading to concerns about their profitability.

On February 1, 2025, shares of state-owned enterprises (PSUs) in India experienced significant declines, with some falling up to 8%. This downturn followed the Union Budget 2025 announcement, which reduced the capital expenditure (capex) allocation for the fiscal year 2025-26 to ₹10.18 lakh crore, down from the previous estimate of ₹11.1 lakh crore.

Impact on Key Sectors

The capex reduction has adversely affected sectors heavily reliant on government spending, including railways, defense, and banking. Notable declines were observed in the following stocks:

• Railways Sector:
  • Ircon International: Down 9%
  • Rail Vikas Nigam: Down 9%
  • Indian Railway Finance Corporation (IRFC): Down 9%
  • Indian Railway Catering and Tourism Corporation (IRCTC): Down 9%
• Defense Sector:
  • Bharat Dynamics: Down 5%
  • Mazagon Dock Shipbuilders: Down 5%
  • Bharat Electronics: Down 5%
  • Cochin Shipyard: Down 5%
  • Hindustan Aeronautics: Down 5%
• Banking Sector:
  • Bank of India: Down 3%
  • Indian Bank: Down 3%
  • Union Bank of India: Down 3%
  • Punjab National Bank: Down 3%
  • Central Bank of India: Down 3%
  • State Bank of India (SBI): Down 2%
  • Bank of Maharashtra: Down 2%

Government’s Capex Allocation

Finance Minister Nirmala Sitharaman announced a capex allocation of ₹10.18 lakh crore for FY25, attributing the reduction to slower capital spending during the first half of the fiscal year. For FY26, the capex target was set at ₹11.2 lakh crore, which was lower than industry expectations of ₹11.5 lakh crore.

Market Reaction

The BSE PSU index, a barometer of public sector enterprises’ performance, tumbled 4% to 17,718, reflecting investor concerns over reduced government spending. PSU companies, typically key beneficiaries of government capex initiatives, were impacted by the cut.

Analyst Perspectives

Analysts have expressed concerns that the reduced capex allocation may affect the growth prospects of PSUs, particularly in infrastructure-dependent sectors. The lower-than-expected capex could lead to subdued corporate earnings and may dampen investor sentiment in the short term.

The reduction in capital expenditure announced in Budget 2025 has led to a decline in PSU stocks, particularly in the railways, defense, and banking sectors. Investors are closely monitoring the government’s fiscal policies and their potential impact on the growth and profitability of state-owned enterprises.

Read the full article here: State-Owned Enterprises’ Stocks Fall Following Budget 2025 Announcements — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).

In the Union Budget for the fiscal year 2025-26, the Indian government has allocated a total of ₹3.71 lakh crore for food and fertilizer subsidies, marking a slight increase of 0.70% from the previous fiscal year. The food subsidy is set at ₹2,03,420 crore, up from ₹1,97,420 crore in 2024-25, while the fertilizer subsidy is allocated ₹1.67 lakh crore, a decrease from ₹1.71 lakh crore in the current fiscal year. 

On February 1, 2025, India’s Finance Minister, Nirmala Sitharaman, presented the Union Budget for the fiscal year 2025-26, allocating a total of ₹3.71 lakh crore for food and fertilizer subsidies. This allocation represents a modest increase of 0.70% compared to the current fiscal year’s estimated expenditure.

Food Subsidy Allocation

The budget earmarks ₹2,03,420 crore for food subsidies in the upcoming fiscal year, up from the revised estimate of ₹1,97,420 crore for 2024-25. This increase aims to support the Public Distribution System (PDS), ensuring the availability of essential food items at subsidized rates to the economically disadvantaged sections of society.

Fertilizer Subsidy Allocation

The fertilizer subsidy is set at ₹1.67 lakh crore for 2025-26, slightly lower than the previous year’s allocation of ₹1.71 lakh crore. This subsidy is crucial for maintaining the affordability of fertilizers, thereby supporting agricultural productivity and food security.

Implications for the Economy

The combined allocation of ₹3.71 lakh crore underscores the government’s commitment to supporting the agricultural sector and ensuring food security. These subsidies are expected to alleviate the financial burden on farmers and consumers, contributing to economic stability and growth.

The marginal increase in the food subsidy allocation reflects the government’s focus on enhancing the efficiency of the PDS and targeting assistance to those most in need. The slight reduction in the fertilizer subsidy may indicate a strategic shift towards promoting sustainable agricultural practices and reducing dependency on chemical fertilizers.

Overall, the budgetary provisions for food and fertilizer subsidies in 2025-26 are designed to balance fiscal responsibility with the imperative of supporting the agricultural community and ensuring food security for all citizens.

Read the full article here: Budget 2025: Food and Fertilizer Subsidies Pegged at ₹3.71 Lakh Crore — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).

On February 1, 2025, shares of India’s state-owned Oil Marketing Companies (OMCs)—Hindustan Petroleum Corporation Ltd. (HPCL), Indian Oil Corporation Ltd. (IOC), and Bharat Petroleum Corporation Ltd. (BPCL)—experienced declines of up to 5%. This downturn followed the Union Budget 2025 announcements, which revealed a reduction in the LPG subsidy allocation for the upcoming financial year.

On February 1, 2025, shares of India’s state-owned Oil Marketing Companies (OMCs)—Hindustan Petroleum Corporation Ltd. (HPCL), Indian Oil Corporation Ltd. (IOC), and Bharat Petroleum Corporation Ltd. (BPCL)—experienced declines of up to 5%. This downturn followed the Union Budget 2025 announcements, which revealed a reduction in the LPG subsidy allocation for the upcoming financial year.

LPG Subsidy Allocation Reduced

The Union Budget 2025 documents indicated that the LPG subsidy for the financial year 2025 was allocated at ₹14,700 crore. However, this amount was decreased to ₹12,100 crore for 2026. This reduction has raised concerns among OMCs, as they have been absorbing significant losses due to selling LPG at subsidized rates.

Impact on OMCs

In the first nine months of 2025, OMCs faced LPG under-recoveries totaling ₹30,000 crore. Among them, Indian Oil reported under-recoveries of ₹14,325 crore, BPCL recorded ₹7,200 crore, and HPCL reported ₹7,600 crore in under-recoveries. The recent budget document did not provide any compensation for OMCs to offset these LPG losses.

Stock Performance

Following the budget announcements, shares of these OMCs declined:

• IOC: Down 2.9% to ₹125.7
• BPCL: Down 4.5% to ₹252.75
• HPCL: Down 6% to ₹342.15

These declines reflect investor concerns over the reduced subsidy allocation and the potential financial impact on these companies.

The reduction in LPG subsidy allocation in the Union Budget 2025 has raised concerns for India’s state-owned OMCs, leading to declines in their stock prices. The absence of compensation for LPG losses in the budget further exacerbates these concerns, highlighting the need for strategic measures to support the financial health of these companies.

Read the full article here: Budget 2025: LPG Subsidy Reduction Impacts HPCL, IOC, BPCL Stocks — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).

On February 1, 2025, India’s Finance Minister Nirmala Sitharaman announced the Union Budget 2025, introducing measures that have significantly boosted the jewellery sector. Despite a broader market downturn, jewellery stocks have surged, reflecting investor optimism.

On February 1, 2025, Finance Minister Nirmala Sitharaman unveiled the Union Budget 2025, introducing measures that have significantly boosted the jewellery sector in India. Despite a broader market downturn, jewellery stocks have surged, reflecting investor optimism.

Key Budget Announcements Impacting the Jewellery Industry

• Customs Duty Reduction: The government has reduced the customs duty on jewellery articles and parts from 25% to 20%, effective February 2, 2025. Additionally, the duty on platinum findings has been slashed from 25% to 5%, making imports more cost-effective and enhancing profitability for jewellery manufacturers and retailers.
• Tax Relief for Individuals: The new tax regime offers income tax relief for individuals earning up to ₹12 lakh, which is expected to boost household consumption, savings, and investment. This policy change has reinforced confidence in the jewellery sector, supporting stock prices despite the market downturn.

Pro-Business Measures Supporting the Jewellery Sector

• MSME Turnover Limit Increase: The turnover limit for Micro, Small, and Medium Enterprises (MSMEs) has been raised from ₹250 crore to ₹500 crore, allowing small and mid-sized jewellery manufacturers greater access to government schemes and credit facilities.
• Duty-Free Imports of Lab-Grown Diamonds (LGDs): The removal of Import General Manifest (IGM) conditions for duty-free imports of Lab-Grown Diamond (LGD) seeds is expected to increase demand for LGDs.
• Introduction of Separate HS Codes: The introduction of separate Harmonized System (HS) codes for platinum and gold alloys will help curb malpractices and ensure fair trade in the industry.

Jewellery Stocks Rally Amid Policy Boost

Following the Budget announcements, jewellery stocks surged, reflecting optimism over policy-driven growth. Notable movements include:

• Senco Gold: Jumped 8.6% to ₹510.25.
• Motisons Jewellers: Climbed 5% to ₹25.05.
• Kalyan Jewellers: Advanced 5% to ₹526.30.
• Titan Company: Rose 4% to ₹3,632.75.
• Thangamayil Jewellery: Added 2% to ₹1,865.

These gains highlight investor confidence in the jewellery sector, particularly as reduced import duties lower costs and enhance margins for major players.

Industry Expectations and Future Outlook

While the Budget measures have been welcomed, the industry had higher expectations that remain unaddressed. Stakeholders were hoping for a further reduction in gold import duty, which remains a key cost factor for jewellers. Additionally, there were calls for a dedicated regulator for digital gold to enhance transparency and investor trust. Another major demand was more favorable terms under the gold monetisation scheme, which aims to reduce reliance on imported gold by encouraging households to deposit idle gold with banks.

Despite these concerns, the customs duty cuts and tax benefits are seen as major growth drivers for the sector. The policies announced in Budget 2025 strengthen domestic demand, improve cost structures, and enhance investor sentiment, making jewellery stocks attractive investment opportunities despite overall market volatility.

Read the full article here: Budget 2025: Tax Relief and Duty Cuts Propel India’s Jewellery Stocks — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).

The Indian government has allocated ₹3.71 lakh crore for food and fertilizer subsidies in the 2025-26 fiscal year, marking a 0.70% increase from the previous year. This includes ₹2,03,420 crore for food subsidies and ₹1.67 lakh crore for fertilizers. The food subsidy allocation is higher than the revised estimate of ₹1,97,420 crore for 2024-25, though slightly below the ₹2.11 lakh crore spent in 2023-24.

On February 1, 2025, India’s Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2025-26, introducing several changes in customs duties that will affect the prices of various goods.

Items Becoming Cheaper:

• Life-Saving Drugs: The government has fully exempted 36 life-saving drugs, including those used for cancer and other chronic diseases, from basic customs duties.
• Electronic Goods: The customs duty on open cells for interactive flat panel displays, touch glass sheets, and touch sensors for LED/LCD TVs has been reduced from 15% to 5%.
• Electric Vehicle (EV) and Mobile Phone Batteries: The list of exempted capital goods now includes 35 items for EV battery production and 28 for mobile phone battery production.
• Fish and Seafood: The customs duty on frozen fish paste (surimi) has been reduced from 30% to 5%, and on fish hydrolysate for aquatic feed from 15% to 5%.
• Synthetic Flavouring Essences: The customs duty on mixtures of odoriferous substances used in the food and drink industries has been reduced from 100% to 20%.
• Critical Minerals: Customs duties on 25 critical minerals, including lithium, copper, cobalt, and rare earth elements, have been fully exempted to support sectors like nuclear energy, renewable energy, space, defense, telecommunications, and high-tech electronics.
• Wet Blue Leather: The customs duty on wet blue leather has been reduced from 10% to nil.
• Shuttleless Looms: The customs duty on rapier looms and air jet looms for the textile industry has been reduced from 7.5% to nil.
• Mobile Equipment: The customs duty on inputs/sub-parts of camera modules, connectors, wired headsets, microphones, receivers, USB cables, and fingerprint readers/sensors for mobile phones has been reduced from 2.5% to nil.
• Space Satellite Equipment: The customs duty on goods used in building launch vehicles, launching satellites, and ground installations for satellites, including spares and consumables, has been reduced to nil.
• Shipbuilding: The exemption on customs duty for ships and their parts has been extended for an additional 10 years.
• Motorcycle Imports: The customs duty on motorcycles with engine capacities not exceeding 1,600 CC has been reduced to 40%, with further reductions for semi-knocked down and completely knocked down units.

Items Becoming Costlier:

• Knitted Fabrics: The customs duty has been increased from 10% to 20%.
• Interactive Flat Displays: The customs duty has been increased from 10% to 20%.
• Social Welfare Surcharge: The exemption on 82 tariff lines currently under cess has been removed.

These adjustments aim to balance domestic industry support with consumer benefits, reflecting the government’s strategic approach to economic growth and trade.

Read the full article here: India’s 2025-26 Budget: Key Changes in Subsidies and Customs Duties — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).

In the Union Budget 2025-26, India’s Finance Minister, Nirmala Sitharaman, announced significant reforms to Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) provisions. The TDS threshold for rent payments has been increased from ₹2.4 lakh to ₹6 lakh annually, reducing the compliance burden for tenants and landlords. Additionally, the TCS threshold under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS) has been raised from ₹7 lakh to ₹10 lakh, facilitating higher foreign remittances without additional tax collection. These measures aim to simplify tax processes and provide relief to taxpayers.

On February 1, 2025, India’s Finance Minister, Nirmala Sitharaman, unveiled the Union Budget for the fiscal year 2025-26, introducing significant reforms in tax deduction and collection mechanisms to simplify compliance and provide relief to taxpayers across the country.

Key Highlights:

• Tax Deduction at Source (TDS) on Rent Payments: The annual threshold for TDS on rent has been increased from ₹2.40 lakh to ₹6 lakh. Previously, tenants were required to deduct TDS at 5% on monthly rent payments exceeding ₹50,000. With the new threshold, TDS will now be applicable on monthly rents exceeding ₹50,000, but at a reduced rate of 2%, effective October 1, 2024.
• Tax Collection at Source (TCS) on Foreign Remittances: The threshold for TCS under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS) has been proposed to increase from ₹7 lakh to ₹10 lakh. This adjustment aims to facilitate smoother remittances for individuals sending money abroad.
• Higher Education Remittances: For remittances made towards education, especially when funded through loans from financial institutions, the government has proposed a waiver of TCS. This move is expected to ease the financial burden on students pursuing studies abroad.
• Senior Citizens’ Interest Income: The limit for tax deduction on interest income for senior citizens has been raised from ₹50,000 to ₹1 lakh, providing additional financial relief to the elderly population.
• Decriminalisation of TDS and TCS Offences: Building on reforms initiated in July 2024, delays in the payment of TDS up to the due date of filing statements were decriminalised. This relaxation has now been extended to TCS provisions, aiming to reduce the compliance burden and promote a more taxpayer-friendly environment.

These measures reflect the government’s commitment to rationalising tax structures, reducing compliance burdens, and supporting various segments of the population, including tenants, senior citizens, and students aspiring for international education.

Read the full article here: Budget 2025: Key Tax Reforms in TDS and TCS Provisions Announced — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).

In the Union Budget 2025-26, presented on February 1, 2025, Finance Minister Nirmala Sitharaman announced significant income tax reforms aimed at providing relief to the middle class in India. The new tax regime exempts individuals earning up to ₹12 lakh annually from income tax and introduces revised tax slabs with reduced rates for higher income brackets. These measures are designed to increase disposable income and stimulate economic growth.

On February 1, 2025, India’s Finance Minister, Nirmala Sitharaman, presented the Union Budget for the fiscal year 2025-26, introducing significant reforms aimed at providing relief to the middle class through a revamped income tax structure. A key highlight of the new tax regime is the exemption of income up to ₹12 lakh from taxation, along with reduced rates across various income brackets to enhance disposable income.

Revised Income Tax Slabs for FY 2025-26:

In contrast, the previous tax regime taxed incomes above ₹15 lakh at a flat rate of 30%. The new structure not only raises the tax-free threshold but also introduces more progressive tax rates, aiming to reduce the financial burden on middle-income earners.

Taxpayers retain the option to choose between the new and old tax regimes, depending on which is more beneficial to their financial situation. The old regime offers various exemptions and deductions, such as House Rent Allowance (HRA) and Leave Travel Allowance (LTA), but comes with higher tax rates. The new regime simplifies the tax process with lower rates and fewer exemptions, making it more straightforward for taxpayers to file returns and plan their finances.

The government anticipates that these changes will increase disposable income for the middle class, thereby boosting consumer spending and stimulating economic growth. By alleviating the tax burden, the budget aims to enhance the financial well-being of citizens and promote

Read the full article here: India’s Union Budget 2025-26: Income Tax Relief for Middle Class — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).