Budget 2025-26: A Game Changer for Taxpayers & Businesses?
Sumit Kumar .ACMA
Outsourcing Expert of International Accounting and taxation| USA| CANADA| NZ| AUSTRALIA| GCC| UK and Worldwide ??
The Union Budget 2025-26 introduces bold tax reforms aimed at reducing tax burdens, simplifying compliance, and boosting domestic businesses. From income tax restructuring to MSME incentives and GST changes, this budget has something for everyone.
As tax consultants and advisors, let’s break down the key highlights and their implications.
1. Personal Income Tax: More Savings for the Middle Class
The government has introduced a more relaxed tax structure, putting more money in taxpayers' hands.
?? New Income Tax Slabs (FY 2025-26)
Annual Income (?) Tax Rate
0 - 4 lakh Nil (No Tax)
4 - 8 lakh 5%
8 - 12 lakh 10%
12 - 16 lakh 15%
16 - 20 lakh 20%
20 - 24 lakh 25%
Above 24 lakh 30%
? Tax-free income limit increased to ?12 lakh (?12.75 lakh for salaried individuals with standard deduction)
? Increased TDS exemption limits for:
? Simplified tax filing and compliance reduction for individuals
The middle class benefits the most from these changes, leading to higher disposable income and increased spending power.
2. GST & Indirect Tax: Easing Compliance and Boosting Domestic Industry
The government has continued its mission to simplify GST and customs duty to encourage domestic manufacturing and trade.
? Customs duty relief on:
? Reduced compliance burden for GST filings
? Faster refunds & input tax credit processing
This will reduce production costs and encourage Make in India exports.
3. MSMEs & Startups: Fueling Growth & Credit Accessibility
Recognizing the role of MSMEs and startups in economic growth, the budget introduces pro-business measures:
?? Enhanced Credit Guarantee: Loan limits increased for MSMEs
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?? Tax incentives for startups extended till 2030
?? Customized credit cards for micro-enterprises with a ?5 lakh limit
?? Relaxed turnover limits for MSMEs to help them scale up
With improved credit availability and lower tax burdens, MSMEs and startups are better positioned for expansion and job creation.
4. Sector-Wise Budget Benefits: Who Gains the Most?
SectorKey Budget Benefits
Individuals & Salaried ?? Lower tax slabs, ? Increased tax-free income
MSMEs & Startups ?? Higher credit limits, ?? Tax incentives extended till 2030
Manufacturing ?? Lower customs duty, ?? Incentives for lithium-ion batteries
Exporters ?? Export promotion schemes, ?? Simplified customs processes
Technology & AI ?? AI innovation funding, ?? R&D tax benefits
Renewable Energy ?? Incentives for solar, ?? EV battery support
Real Estate & Housing ?? Housing loan benefits, ??? SWAMIH fund for stalled projects
These sector-wise reforms will fuel economic growth, create jobs, and support global competitiveness.
5. Business-Friendly Policies: Encouraging Investment & Exports
?? Export promotion incentives for Indian manufacturers
?? Tax certainty for electronics manufacturing
?? Investment facilitation for infrastructure & real estate
With a focus on "Make in India", these reforms are expected to attract both domestic and foreign investments.
Final Thoughts: A Balanced Budget for Growth
The Budget 2025-26 delivers on key promises:
? More money in the hands of taxpayers
? Easier tax compliance for businesses
? Stronger incentives for MSMEs & startups
? Boost for manufacturing & exports
However, execution is key. Businesses and individuals must align their financial strategies to fully leverage these benefits.
?? What’s your take on these tax changes? Will they drive real economic growth? Share your thoughts in the comments!
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