Union Budget 2025 Highlights & Announcements: No income tax payable up to income of ₹12 lakh in N...

Budget 2025 Key Highlights & Updates, Union Budget 2025 Outcomes, New Income Tax Slab Announcements: Here’s all the updates from the Union Budget presented in the Parliament by Finance Minister Nirmala Sitharaman. Find all updates in income tax rates and slab…
Ramiro Rosenbaum · 8 days ago · 4 minutes read


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Union Budget 2025: A Reformative Leap Forward

Boosting M&A Activity

The 2025 budget takes a reformative approach, simplifying M&A procedures to facilitate easier transactions. This, coupled with the formation of a regulatory reforms committee focused on trust-based economics and ease of doing business, signals the government's strong commitment to stimulating trade and commerce.

Rajesh Narain Gupta, Founder and Chairman of SNG & Partners, notes the budget's reformative nature and its focus on key sectors like agriculture, rural development, and financial inclusion. He also highlights the novel approach of trusting taxpayers first and investigating later.

Empowering MSMEs through Postal Networks

Leveraging India's extensive postal network, the budget proposes transforming post offices into logistics hubs for entrepreneurs, women, and MSME businesses. This initiative cleverly utilizes a pre-existing national asset to support small businesses.

Dhruv Chopra, Managing Partner at Dewan PN Chopra, calls this initiative "an excellent way to optimize one of India’s marque asset bases and networks."

Fueling the Startup Ecosystem

An additional ₹10,000 crore will be infused into the Fund of Funds for startups, bringing the total allocation to ₹20,000 crore. This substantial investment is aimed at propelling entrepreneurship and growth across 27 key sectors.

Furthermore, a ₹20,000 crore investment will support innovation, including a dedicated DeepTech Fund of Funds, promoting research and development. 10,000 fellowships will also be awarded for research at IITs and similar institutions, bolstering innovation hubs.

Dhruv Chopra, Managing Partner at Dewan P N Chopra & Co, highlights these initiatives as significant boosts for the startup sector and deep tech innovation in India.

Modernizing the Income Tax Act

A new Income Tax Bill, expected to revamp the 64-year-old Act, will be introduced. This new bill promises simplified language and easier compliance for taxpayers.

Parveen Kumar, Partner - Direct Tax at Dewan P N Chopra & Co, anticipates that this new bill will make the Income Tax Act easier to understand and comply with.

Abhishek Sharma, also of Dewan P N Chopra & Co, adds that the bill's clear and direct language is designed for simplicity and ease of understanding for all stakeholders.

Decriminalization and Ease of Doing Business

The Jan Vishwas 2.0 Bill aims to decriminalize over 100 provisions across existing laws, further easing the regulatory burden on businesses. This aligns with the government's ongoing efforts to improve the business environment.

Parveen Kumar and Dhruv Chopra, both of Dewan P N Chopra & Co, emphasize the importance of this bill in supporting the "Make in India" initiative and streamlining merger processes respectively.

Sector-Specific Initiatives

The budget includes a range of sector-specific initiatives, from a Focus Product Scheme for the non-leather footwear sector to increased FDI in insurance (up to 100%). Customs duty reforms, including exemptions for life-saving drugs and capital goods related to Lithium-ion battery manufacturing, are also planned.

Numerous experts from BDO India, including Dinesh Kumar, Nitesh Mehta, Manoj Purohit, Maulik Manakiwala, and others, weigh in on the positive impacts these changes will have on various sectors, from manufacturing and MSMEs to the EV sector and tourism.

Building a Skilled Workforce

A National Centre for Skilling, established with international collaboration, will address the skills gap in advanced manufacturing technologies, furthering the “Make in India” initiative.

Rajitha Boorugu, Partner, Indirect Tax at BDO India, believes this reform is crucial for enhancing India’s manufacturing capabilities.

Focusing on Trust and Transparency

The overarching theme of "trust first, scrutinize later" underscores the government's commitment to simplifying compliance and fostering a more transparent business environment. This approach is evident in various measures, from tax reforms to customs procedures.

Several experts, including Gyanendra Tripathi and Nitesh Mehta from BDO India, highlight the positive impact of this trust-based approach on improving ease of doing business.

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