No Income Tax for incomes up to ₹12 lakh annually under the new regime.
Salaried Class: Tax exemption up to ₹12.75 lakh (including ₹75,000 standard deduction).
Revised Tax Slabs (FY 2025-26):
Income Range (₹ lakh) Tax Rate
- 0–4 0%
- 4–8 5%
- 8–12 10%
- 12–16 15%
- 16–20 20%
- 20–24 25%
- Above 24 30%
Tax Benefits by Income:
- ₹12 lakh income: ₹80,000 saved (0% effective rate).
- ₹16 lakh income: ₹50,000 saved (7.5% effective rate).
- ₹20 lakh income: ₹90,000 saved (10% effective rate).
- ₹50 lakh income: ₹1.1 lakh saved (21.6% effective rate).
- Revenue Impact: ₹1 lakh crore direct tax revenue forgone.
New Income Tax Bill: Simplified structure with 50% fewer provisions to reduce litigation.
2. Agriculture & Rural Development
- Prime Minister Dhan-Dhaanya Krishi Yojana: Targets 100 low-productivity districts, benefiting 1.7 crore farmers.
- Mission for Pulses Self-Reliance (Tur, Urad, Masoor): 6-year plan to boost productivity, climate-resilient seeds, and farmer income.
- Kisan Credit Card (KCC): Loan limit raised to ₹5 lakh for 7.7 crore farmers, fishermen, and dairy farmers.
- Rural Prosperity Programme: Focus on skilling, technology, and reducing under-employment; Phase-1 covers 100 agri-districts.
- Makhana Board: To enhance production and marketing of makhana in Bihar.
- Western Koshi Canal Project: Benefits 50,000+ hectares in Bihar’s Mithilanchal region.
3. MSMEs, Entrepreneurship & Employment
Credit Guarantee Enhancements:
- Micro/Small Enterprises: Cover raised to ₹10 crore (additional ₹1.5 lakh crore credit in 5 years).
- Startups: Cover doubled to ₹20 crore; 1% fee for 27 focus sectors.
- Customized Credit Cards: ₹5 lakh limit for 10 lakh micro-enterprises on Udyam portal.
- Fund of Funds for Startups: ₹10,000 crore corpus.
- Footwear & Leather Sector: Aiming ₹4 lakh crore turnover and 22 lakh jobs; duty exemption on wet blue leather.
- Gig Workers: Identity cards, healthcare under PM Jan Arogya Yojana for 1 crore workers.
4. Healthcare & Education
- Cancer Care: 200 Day Care Centres in district hospitals by 2025–26.
- Customs Duty Exemptions: 36 lifesaving drugs fully exempted; 6 drugs at 5% duty.
- Medical Education: 10,000 new seats in 2025–26 (75,000 target in 5 years).
- Atal Tinkering Labs: 50,000 to be set up in government schools.
- Bharat Net: Broadband for all rural secondary schools and primary health centres.
5. Infrastructure & Urban Development
- SWAMIH Fund 2: ₹15,000 crore for completing 1 lakh housing units; 40,000 units by 2025.
- Urban Challenge Fund: ₹1 lakh crore for cities as growth hubs, water, and sanitation.
- Maritime Development Fund: ₹25,000 crore corpus for shipbuilding and port infrastructure.
- UDAN Scheme Expansion: 120 new regional connectivity destinations; 4 crore passengers targeted.
6. Energy & Environment
- Nuclear Energy Mission: ₹20,000 crore for Small Modular Reactors (SMRs); 5 operational by 2033.
- Clean Tech Manufacturing: Incentives for EV batteries, solar PV cells, and wind turbines.
- Critical Minerals: Duty exemptions on cobalt, lithium-ion scrap, and 12 others to boost domestic production.
7. Tourism & Export Promotion
50 Tourist Destinations: Upgrade via skill programs, homestay loans, and e-visa streamlining.
Export Promotion Mission: Joint initiative by Commerce, MSME, and Finance Ministries for credit access and cross-border support.
8. Reforms & Ease of Doing Business
- FDI in Insurance: Limit raised to 100% for companies reinvesting premiums in India.
- Jan Vishwas Bill 2.0: Decriminalizes 100+ legal provisions.
- Regulatory Reforms: High-Level Committee to review non-financial sector licenses and certifications.
- Extended Deadlines: Startup incorporation benefits extended till 1.4.2030; IFSC benefits till 31.3.2030.
9. Indirect Tax Measures
- Customs Simplification: Reduced to 8 tariff rates; Social Welfare Surcharge exempted on 82 lines.
- Import Flexibility: End-use period for inputs extended to 1 year; quarterly reporting instead of monthly.