🇮🇳 India's New Tax Regime 2025

The sources provide information regarding the Indian Union Budget for 2025-2026, covering various aspects such as tax reforms, economic policies, and sector-specific initiatives. Here is a summary of the key points: Budget Overview The budget aims to accelerate growth, secure inclusive development, invigorate private sector investments, uplift household sentiments, and enhance the spending power of India's rising middle class. The budget focuses on four key groups: the poor, youth, farmers, and women. Support for MSMEs and Startups The credit guarantee cover for Micro and Small Enterprises (MSMEs) will be enhanced to ₹10 crore, up from ₹5 crore. This is expected to result in an additional ₹1.5 lakh crore in credit over the next 5 years. The credit guarantee cover for startups will be increased to ₹20 crore from ₹10 crore, with a reduced guarantee fee of 1% for loans in 27 focus sectors that align with 'Atmanirbhar Bharat'. Well-run exporter MSMEs will receive increased credit guarantees for term loans up to ₹20 crore. Credit cards with a limit of ₹5 lakh will be introduced for micro-enterprises registered on the Udyam portal, with 10 lakh cards planned to be issued in the first year. Support for Specific Groups and Sectors A new scheme will provide term loans of up to ₹2 crore for 5 lakh first-time women, Scheduled Castes, and Scheduled Tribes entrepreneurs, with added online capacity building for managerial skills and entrepreneurship. A focus product scheme supports non-leather quality footwear production, aiming to create 22 lakh jobs and generate ₹400 crore in revenues and ₹1.1 lakh crore in exports. A new scheme is intended to make India a global hub for toys by developing skills and clusters and creating a manufacturing ecosystem with sustainable toys. The National Institute of Food Technology, Entrepreneurship, and Management in Bihar is intended to boost food processing activities throughout the entire Eastern region. A "Mission to support Clean Tech manufacturing" aims to improve domestic value addition and build an ecosystem for EV batteries, solar PV cells, and other related technologies. A National Manufacturing Mission will support 'Make in India' by providing policy support, execution roadmaps and governance frameworks. Taxation The budget proposes revised tax slabs and rates under the new tax regime, with no tax on income up to ₹12 lakh. However, another source indicates that the proposed maximum income that would be subject to no income tax is up to ₹3,00,000 and that the benefit for taxpayers with a taxable income up to 12 lakhs would be 0 due to the full rebate that would apply. The budget also proposes TDS relief for senior citizens and other depositors. The limit for tax deduction on interest for senior citizens is being doubled from ₹50,000 to ₹1 lakh. The time limit to file an updated return has been extended from 24 months to 48 months from the end of the relevant assessment year. The budget proposes to rationalise Tax Deduction at Source (TDS) by reducing the number of rates and thresholds. There are amendments to the Income-tax Act regarding shipping, and the definition of "qualifying ship" will now include "ships" and "inland vessels". The budget introduces a new sub-clause in the Income-tax Act to exclude any advance or loan between two group entities, where one is a "Finance company" or a "Finance unit" whose parent entity is listed on a stock exchange outside India, from the definition of dividend.

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