Finance Minister Nirmala Sitharaman Unveils Budget 2025-26 – Finance Minister Nirmala Sitharaman has announced the much-awaited Union Budget 2025-26, and it’s brought fantastic news for middle-class taxpayers! The government has revamped the income tax system, making annual incomes up to ₹12 lakh completely tax-free. Plus, people earning up to ₹25 lakh will get tax benefits of up to ₹1.10 lakh, and those making ₹18 lakh per year will enjoy tax relief of ₹70,000. People across the country were eagerly waiting for this budget, wondering if they would get tax relief, which industries would benefit, and how the economy would be shaped for the upcoming year. This budget primarily focuses on middle-class families, salaried professionals, startups, gig workers, education, real estate, and industries.
What’s the Goal of Budget 2025?
The main aim of this budget is to:
Give a boost to the economy
Support business and industrial growth
Make the tax system easier to understand
Put more money in people’s pockets
The biggest highlight is the tax relief for the middle class and the introduction of social security for gig workers. Let’s dive into the 10 biggest announcements that will directly impact your life.
1. Major Tax Relief for Salaried Professionals
One of the biggest surprises in this budget is the huge change in the income tax system. Now, anyone earning up to ₹12 lakh per year won’t have to pay any tax. This is a major relief for middle-class families and salaried individuals. Additionally, people making up to ₹25 lakh annually will save ₹1.10 lakh in taxes, while those with an ₹18 lakh salary will get a tax benefit of ₹70,000. Talking about this change, Finance Minister Nirmala Sitharaman said,
“This budget is great news for salaried professionals. With more money in people’s hands, they can spend more, which will help the economy grow stronger.”
2. Startups Get More Tax Benefits
India is becoming a global startup hub, and to encourage more young entrepreneurs, the government has extended tax benefits for startups for another five years. This will help businesses grow without worrying about tax burdens.
3. Social Security Scheme for Gig Workers
Millions of people working as Zomato-Swiggy delivery riders, Uber-Ola drivers, freelancers, and small business owners are now getting government support. For the first time, the government has launched a social security scheme for gig workers.
- They will get official ID cards.
- They will be registered on the e-Shram portal.
- They will get health benefits under PM Jan Arogya Yojana.
The government expects that over 1 crore gig workers will benefit from this scheme.
4. Affordable Housing for Middle-Class Families
Planning to buy your own home? There’s good news! Under the SWAMIH Scheme, the government will complete 40,000 new housing projects in 2025.
Additionally, ₹15,000 crore has been allocated under SWAMIH Fund 2 to finish 1 lakh stalled housing projects. This will help middle-class families afford homes and reduce delays in real estate projects.
5. Mobile Phone Batteries Will Be Cheaper
To promote local production of mobile phone batteries, the government has removed capital goods tax on 28 key components. This means that in the coming months, we can expect cheaper mobile phone batteries.
6. Education Loan Relief for Students Studying Abroad
This budget has some great news for students planning to study abroad. The government has removed TCS (Tax Collection at Source) on education loans up to ₹10 lakh.
This means students won’t have to pay extra taxes on their education loans, making studying abroad more affordable.
7. Tax Relief for People Living on Rent
Previously, if you paid more than ₹2.4 lakh per year in rent, you had to pay TDS (Tax Deducted at Source). Now, the limit has been increased to ₹6 lakh.
This will reduce the tax burden on tenants and make renting a home more affordable.
8. India’s Economic Growth Target for 2025-26
The government expects India’s GDP growth rate to be between 6.3% and 6.8% in 2025-26. While this is a stable number, experts believe that if India wants to become a developed country, we need a growth rate of 8-10%.
To speed up economic growth, experts suggest the government should focus more on land and labor reforms.
Final Thoughts: How Does Budget 2025 Affect You?
This budget brings big tax relief for salaried professionals, social security for gig workers, affordable housing, tax benefits for startups, and lower education loan costs.
Many people are calling this a pro-middle-class budget, but some experts think industries might face challenges. The opposition argues that more investment should have been made in healthcare and education.
Overall, this budget puts more money in people’s hands, simplifies the tax system, and takes a positive step towards economic growth. What do you think about Budget 2025-26? Will it make your life easier?
