Union Budget 2025 LIVE updates: Finance Minister Nirmala Sitharaman, in her eighth consecutive budget in a row, said income up to Rs 12 lakh will invite zero tax. The big move came amid expectations from the middle class, and as the finance minister looked to increase disposable income.
Follow all Union Budget 2025 updates and developments here:
Budget 2025: The new tax slab breakdown
Rs 0–4 lakh: NIL Rs 4–8 lakh: 5% Rs 8–12 lakh: 10% Rs 12–16 lakh: 15% Rs 16–20 lakh: 20% Rs 20–25 lakh: 25% Above Rs 25 lakh: 30%
Budget 2025-26: How the tax exemption limits changed
2005: Rs 1 lakh 2012: Rs 2 lakh 2014: Rs 2.5 lakh 2019: Rs 5 lakh 2023: Rs 7 lakh 2025: Rs 12 lakh
Budget 2025: Big move by FM Sitharaman!
FM Sitharaman says 0 tax for Rs 12 lakh.
Budget 2025: TDS rate numbers reduced
"I propose to rationalize tax deductions at source (TDS) by reducing the number of rates and thresholds about which TDS is deductible. Further, threshold amounts for tax deduction will be increased for better clarity and uniformity. The limit for tax deduction on interest for senior citizens is being doubled from the present Rs 50,000 to Rs 1,00,000," said FM Sitharaman.
Union Budget 2025: Indirect taxes
FM announced rationalisation of tariffs and customs. She announced removing of 7 tariff rates, thereby leaving only 8 tariff rates.
She also exempted 36 life saving drugs from duty, and 6 more to see concessional duty of 5 per cent.
Union Budget 2025 announces the setting up of an investment-friendliness index of states to increase competitiveness.
Union Budget 2025: India as a toy hub
"We will implement a scheme to build a national action plan for toys, focusing on the development of clusters, skills, and a manufacturing ecosystem. This will help create high-quality, unique, innovative, and sustainable toys that represent the 'Made in India' brand," said the FM.
Budget 2025: Greenfield airport for Bihar
FM Sitharaman announced greenfield airports in Bihar to meet the future needs of the state, apart from the expansion of the capacity of Patna Airport.
Budget 2025: Additional seats for medical colleges, IITs
FM said that10,000 seats will be added in medical colleges and hospitals, and 75,000 seats will be added in next five years. She also announced the expansion of capacity in IITs, announcing the addition of 6,500 seats in four IITs.
Budget 2025: Push for Nuclear Energy
100 GW of nuclear energy by 2047 is essential for energy transition, said FM, announcing the setting up of R&D of small modular reactors with an outlay of Rs 20,000 crore.
Budget 2025: Jal Jeevan mission
Under Jal Jeevan mission since 2019, 15 crore households representing 8 per cent of India's rural population have been provided access to potable tap water connections to achieve 100 per cent coverage. I am pleased to announce the extension of this mission until 2028, said FM.
Budget 2025-26: Centre of excellence in AI
FM announced the setting up of a Center of Excellence in AI for education with a total outlay of Rs 500 crore.
Budget 2025: Manufacturing mission
"Manufacturing mission to further Make in India will cover small, medium and large industries via policy support and detailed framework," said FM Sitharaman.
Budget 2025: Credit cards for micro enterprises
We will introduce customised credit cards with Rs 5 lakh limit for micro enterprises registered on Udyam Portal, said FM Sitharaman.
Budget 2025-26: KCC loan limit increased
Kisan Credit Cards (KCC) will continue to facilitate short-term loans, which will enable 7.7 crore farmers, fishermen and dairy farmers. The loan limit will be increased from Rs 3,500 to Rs 5,000 for loans through KCC.
Budget 2025: FM announces urea plant in Namrup
Urea Plant to be set up in Assam to further augment urea supply
Budget 2025-26: Focus of FM Sitharaman's budget
Budget 2025: FM says the following sectors are in focus in the budget:
Budget 2025: "We see the next five years as a unique opportunity to realize ‘Sabka Vikas’, stimulating balanced growth of all regions," says FM.
Budget 2025: FM Sitharaman says the budget focuses on gareeb, youth, annadata and nari.
Budget 2025: Ruckus in the House before FM Sitharaman takes stage to present the budget.
Budget 2025 is for the common man?
According to sources, PM Modi told his Cabinet colleagues that this budget is for the common man, for the aspirations of poor farmers, women and youth, and of knowledge.
Union Budget 2025-26: FM Sitharaman's red tablet
FM Sitharaman will deliver the Budget using the digital tablet, enclosed in a pouch designed in the traditional 'bahi-khata' style. Sitharaman initiated a change in tradition in July 2019 by opting for a 'bahi-khata' instead of the colonial-era Budget briefcase to carry the Union Budget papers. This practice was continued the following year. In 2021, amid the pandemic, she further modernised the process by using a digital tablet to carry her speech and other Budget documents.
Budget 2025: Cabinet approves Union Budget 2025-26; to be tabled shortly by the FM
Budget 2025-26: Deepak Shenoy on why markets are open today
Markets are open today on account of the Budget 2025 presentation. Stock markets operate for five days, and are closed on Saturday and Sunday. Capitalmind founder and CEO Deepak Shenoy said that the budget used to be presented at 5 pm, a vestige of the British era.
Budget 2025: FM Nirmala Sitharaman reaches the Parliament to present her eighth budget in a row.
Budget 2025-26: FM Sitharaman meets President Droupadi Murmu and briefs her on the budget
Budget 2025: FM Sitharaman wears saree as tribute to Dulari Devi
FM Nirmala Sitharaman was clad in a cream-coloured saree for the Budget 2025 presentation. The saree is a tribute to Maithili painter Dulari Devi, who was awarded the Padma Shree in 2021. The finance minister met the artist, and was presented with the saree by the painter, who wished it to be worn on the Budget Day.
Budget 2025-26: Markets react ahead of Budget
Markets are open today, on account of the Union Budget 2025 presentation by the finance minister. Sensex has rallied 136.44 points to 77,637.01 in opening trade ahead of the presentation. Nifty is up 20.2 points to 23,528.60.
Union Budget 2025: FM Sitharaman all set to present her budget
Budget 2025: All about taxation! New vs Old tax regimes
Taxpayers can currently choose between the Old and the New tax regimes. While taxpayers are allowed by the Income Tax Department to choose their preferred regime each year, the default option is the New tax regime. The Old tax regime includes more options for deductions and exemptions, while the government is expected to make more changes in the New tax regime to make it more user-friendly for taxpayers.
Union Budget 2025: Expectations from the Budget?
Karnataka Minister Priyank Kharge said that he has no expectation from this budget. "We have seen over 10 years of Modiji's masterstroke, 'Modinomics'. And what has that led to? Highest unemployment, closure of SMEs and MSMEs, farmers protesting right at the doorstep of the parliament, start-ups have failed to take up, Make in India, Skill India and Digital India, all have remained on paper and just mere slogans. What is the FDI right now, zero, just last month, more than $9 billion were withdrawn..."
Budget 2025: FM Nirmala Sitharaman's team
FM Nirmala Sitharaman will present her eighth budget today. Her team:
Union Budget 2025: What Karnataka wants
Karnataka CM Siddaramaiah has demanded a host of measures from FM Sitharaman:
Union Budget 2025: The minds behind the Budget 2025-26
Union Budget 2025-26: How will India tackle Trump's tariffs?
To tackle Donald Trump's tariffs, the government is looking to proactively reduce tariffs on certain goods. As per a Reuters report India is considering offering additional incentives to US companies. These incentives may include tax reductions and easier access to land, particularly for industries like semiconductors and electronics.
PM Modi is anticipated to discuss these matters with President Trump later in February. India aims to capitalize on US-China trade tensions to enhance its participation in global supply chains. The list of goods for tariff reduction is expected to encompass components essential for mobile phone assembly. These may include printed circuit board assemblies, parts of camera modules, and USB cables, according to sources.
Union Budget 2025-26: Any changes in tariffs amid Donald Trump's demand to BRICS nations?
Irrespective of Donald Trump's ultimatum to BRICS nation, which includes India, there is a likelihood of change in measures to enhance competitiveness of Indian products on a global stage. "Following the US elections, the risk of volatility in global trade has increased, with potential measures, such as higher import tariffs and tax cuts to promote manufacturing in the US," said Rumki Majumdar, Economist, Deloitte India. The measures might include tariff rationalisation, duty exemptions and remission schemes, which would help lower the cost of Indian exports. Government could also look into simplifying export compliance procedures.
Revisiting tariff structures to support domestic manufacturing and reduce dependency on imports while helping manage exchange rate pressures are likely, said DK Srivastava, Chief Policy Advisor, EY India.
Union Budget 2025: What experts expect
Analysts and experts expect the following from Nirmala Sitharaman’s Budget 2025:
Economic Survey 2024-25: India's road to Viksit Bharat
To achieve its aspirations of becoming a ‘Viksit Bharat’ by 2047, India would need to see a much higher GDP growth rate -- 8 per cent for a decade or two -- than the projected figures for FY26, the Economic Survey said.
The survey said that there are many upsides to domestic investment, output growth and disinflation in FY26, but there are equally strong, prominently extraneous downsides too. ”Nonetheless, the fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation and stable private consumption,” it said.
Economic Survey 2024-25: Food inflation
Food inflation has been a significant contributor to rising prices in recent years, causing many to reconsider their spending on certain food items. However, the Economic Survey predicts that the situation should improve by Q4 FY25, as vegetable prices ease seasonally and the Kharif harvest comes in.
Economic Survey 2024-25: GDP estimates
The survey suggested that India's GDP growth for FY26 would likely range between 6.3% and 6.8%, slightly higher than the estimated 6.4% growth for FY25. Despite global uncertainties and potential commodity price shocks, the survey expressed optimism that India’s economy is on the path to recovery.