CBDT’s Six Scenarios That Could Put Your Tax Return Under the Microscope
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Top Highlights of the Budget 2025 By FM Nirmala Sitharaman on 1st February, 2025
02/03/2025
- No Income Tax upto Income of Rs 12 Lakhs, New Slab Rates for all Taxpayers benefiting Middle Class People of India.
- Finance Minister proposed to introduce the New Income Tax Bill next week.
- New Income Tax Bill be Half of the present Income Tax Act in terms of chapters and words. In other words, they are planning to bring new act as a compact Act
- Threshhold on TDS on Interest Income of Senior Citizen have been increased to Rs. 1 lakhs and Threshhold limit of TDS on Rent have been increased to Rs 6 Lakhs.
- 90 Lakhs Taxpayers filed updated returns i.e ITR – U, Now you can file Income Tax Returns for past 4 years in ITR U.
- The focus is on inclusive development and boosting middle-class people spending limits.
- Budget aims to accelerate growth and unlock the nation’s potential in various sectors.
- Budget will initiate reforms in primarily six domains — taxation, urban development, mining, financial sector, power and regulatory reforms.
- Plant with annual capacity of 12.7 lakh metric tons to be set up at Namrup, Assam.
- Three dormant urea plants in the Eastern region had been reopened and made operationalised.
- Investment limit for #MSME classification to be made 2.5 times. Turnover limits for MSME classification to be doubled.
- Government to provide support to National Cooperatives Development Corporation for its lending operations for co-operative sector.
- Kisan Credit Card: Facilitates loans for 7.07 crore farmers. Loan limit will be increased from Rs. 3 lakh to Rs. 5 lakh under KCC.
- Boosts Footwear, Leather & Toys Industries.
- New scheme for footwear & leather sector to create 22 lakh jobs, ₹4 Lakhs Cr revenue & ₹1.1 Lakhs Cr+ exports.
- Toys sector to get a dedicated scheme by Government to make India as a global manufacturing hub of Toys.
- Announcesa Five years mission to promote cotton production in India.
- Five national centres will be set up for skilling in partnerships in manufacturing. Expansion of capacity in IITs – 100% increase in last 10 years. Additional infra will be created for 6500 more students in new IITs.
- New Fund of Funds for Startups to be set up to promote start ups in India.
- Fresh contribution of another ₹ 10,000 crore for Startups, in addition to existing government contribution of Rs. 10,000 crore for Startups of India.
- New Scheme for Five lakh Women, Scheduled Castes (SC) and Scheduled Tribes (ST) first-time entrepreneurs.
- Centre of excellence in AI for education to be set up with outlay of Rs. 500.
- To add 75000 medical seats in next 5 years.
- The government will establish a national institute of food technology, entrepreneurship and management in Bihar State.
- Centre will launch a 6-year programme for Atamnirbharta in pulses farming
- Credit guarantee cover to be enhanced for MSMEs and start-ups of India to promote Startup Culture in India
- 75000 seats will be increased for IIT
- Cancer hospital will open in every district.
- The government will create a ₹1,00,000 crores Urban Challenge Fund aimed at transforming cities into growth hubs for promotions of new Industry and Setups. The fund will finance 25% of the cost of bankable projects, with an allocation of ₹10,000 crore for 2025-26. The remaining 50% will be funded through bonds, bank loans, and public-private partnerships (PPPs).
- FM announces Dhan Dhanya Krishi Yojna in partnership with various states of India. Scheme to cover 100 Districts. Says 1.7 crore farmers will be benefited.
- A new scheme has been launched by the Government to offer long term loans with a five-years of tenure, benefiting almost five lakhs womens from SC/ST communities of India.
- The Finance Minister announced a dedicated scheme for India’s footwear Industry and leather sector, expected to generate employment in tune for 22 lakh individuals which is indeed a big number, achieve a revenue of ₹4 lakh crore in both the sectors, and boost exports under these sectors to over ₹1.1 lakh crore in the coming years.
- For the toys Industry, the government will implement a scheme to make India – A Global Manufacturing Hub of Toys.
- Saksham Anganwadi and Poshan 2.0 programs will provide vital nutritional support to Eight crore childrens of both rural and urban areas, 1 crore lactating mothers, and 20 lakh adolescent girls.
- 50.000 Atal Tinkering Laboratories (ATLs) will be set up in government schools of both urban and rural areas in the coming 5 years to foster scientific temper in young minds and childrens. Internet connectivity is to be provided to all secondary schools of Government.
- Five National Centres of Excellence for Skilling will be established to equip and upgrade the youth with the necessary skills for global opportunities. The Finance Minister also promised global skilling partnerships to enable India to become a key player in global manufacturing Industries.
- The PM Swanidhi Scheme will be revamped with higher loan limits and the introduction of a ₹30,000 UPI-linked credit card.
- Three-years pipeline of projects by states to be given that can be implemented in private-public partnership (PPP) mode. Each infrastructure-related ministry is to come up with a 3-year plan to be implemented in PPP mode. The outlay of ₹1.5 lakh crore is proposed for 50-year interest-free loans.
- Extend Jal Jeevan mission (JJM) with an enhanced outlay, focus on quality infrastructure and O&M. 15 crore households have been provided portable tap water for drinking and other purpose access under Jal Jeevan Mission (JJM).
- 100GW nuclear energy by 2047 throughout India is essential for energy transition.
- The modified UDAN scheme of India will be launched to connect 120 new destinations across India and cater to 4 crore passengers over the coming 10 years.
- India’s cities are set for transformation. The ₹1 Lakh Cr Urban Challenge Fund will fuel creative redevelopment, enhance water & sanitation infra, and turn cities into growth hubs. With ₹10,000 Cr allocated for FY 2025-26, the future of urban India looks ambitious.
- Thrust on investment in infrastructure continues with focus on PPP projects and asset monetization among others
- Each infrastructure-related ministries needs to come up with a 3-year pipeline of PPP infra projects.
- Financial assistance will be provided for Western Kosi Canal Project in Mithilanchal region of Bihar
- Mudra loans assisstance to be provided to homestays, says FM.
- ‘Medical tourism’ and ‘heal in India’ to be promoted by the Government in partnership with private sector. Top 50 tourism destination sites as planned will be developed in partnership with states.
- The government will offer a national guidance framework structure to help and provide assistance to states to promote Global Capability Centres (GCCs) and enhance their growth accordingly.
- Centralized KYC system will be introduced soon
- Jan Vishwas 2.0 bill to decriminalise over 100 provisions in existing laws.
- All the Banks will be required to maintain a Grameen credit score (GSC) for self-help groups to facilitate better financial access and support by the Government for Rural Areas.
- Govt to draft new model bilateral investment treaty to attract foreign investments In India.
- Insurance FDI hiked from 74% to 100%
- Scheme to cover 100 districts with low productivity, moderate crop intensity and below-average credit parameters
- 10,000 fellowships/scholarships to be provided under the PM Research Fellowship scheme in coming five years, for technological research in IITs and IISc.
- Investing in Research, Development and Innovation of ₹ 20,000 crore for private-sector driven Research, Development and Innovation initiative announced in the July Budget
- National Geospatial Mission to be launched to develop foundational geospatial infrastructure and data
- India ranks 2nd largest in the world in fish production and distribution and aquaculture. Seafood/Aquaculture exports are valued at around Rs. 60,000 Crore. To unlock the untapped potential of Markets of the marine sector, the government has planned to bring in an enabling framework for sustainable harnessing of fisheries from the Indian exclusive economic zone and high seas with a special focus on the Andaman and Nicobar and Lakshadweep Islands of India.
- FastTrack Merger for companies
- Propose removal of 7 tariff rates of Customs over an above those which was removed in earlier budget. Only 8 tariff rates to remain after the new move by the Government.
- Fiscal Deficit at 4.4% of GDP
- The threshold limit for implication of TCS on LRS (Liberalised Remittance Scheme) remittances has been increased from ₹7 lakh to ₹10 lakh.
- It is proposed to remove implication of TCS on education loans up to ₹10 lakh from specified financial institutions notified by Government.
- TCS on sales removed
- Scheme has beenintroduced for determining arm’s length price (ALP) of international transaction for a block period of three years, to streamline transfer pricing and to provide an alternative to yearly examination of the same.
- Tax exemption to be provided on withdrawals made from National Savings Scheme (NSC) by individuals on or after 29th August, 2024
- Compliance burden for small charitable trusts & institutions to be reduced, by increasing their registration period from 5 years to 10 years
- Taxpayers to be allowed to claim annual value of two self-occupied properties as nil without any condition
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