Summary of Indian Union Budget 2025-26

1. Tax Benefits for Salaried People

No income tax if your monthly income is up to ₹1 lakh.
People earning up to ₹12.75 lakh per year will pay zero tax under the new tax system.

2. Focus on Four Growth Areas

The budget focuses on four key areas for development:
Agriculture
Small & Medium Businesses (MSMEs)
Investments
Exports

3. Support for Farmers

1.7 crore farmers will benefit from the Prime Minister Dhan-Dhaanya Krishi Yojana. It will support farmers in 100 districts with low crop production.

A new Mission for Aatmanirbharta in Pulses will promote the production of tur, urad, and masoor dal.

Farmers can get loans up to ₹5 lakh under the Kisan Credit Card (KCC) scheme at lower interest rates.

4. Government Spending & Fiscal Target

The government expects a 4.8% fiscal deficit in 2025 and aims to reduce it to 4.4% in 2026.

5. Help for Small Businesses (MSMEs)

More loans will be given to small businesses. The credit guarantee cover increases from ₹5 crore to ₹10 crore.

A National Manufacturing Mission will support small, medium, and large industries under the Make in India initiative.

6.Education & Innovation

50,000 new Atal Tinkering Labs will be set up in government schools over the next five years.

A Centre of Excellence in Artificial Intelligence (AI) will be built with a budget of ₹500 crore.

7.Support for Street Vendors & Gig Workers

The PM SVANidhi scheme will provide bigger bank loans and introduce UPI-linked credit cards with a ₹30,000 limit.

Gig workers (like delivery workers and freelancers) will get ID cards, registration on the e-Shram portal, and health benefits under the PM Jan Arogya Yojana.

8.Urban Development & Infrastructure

₹1 lakh crore Urban Challenge Fund to improve cities as hubs of growth.

A new Nuclear Energy Mission with ₹20,000 crore will focus on small modular reactors.

The UDAN scheme will expand air connectivity to 120 more destinations.

9. Housing & Real Estate

₹15,000 crore SWAMIH Fund will help complete 1 lakh unfinished homes quickly.

10. Boost for Private Sector Research & Development

₹20,000 crore will be given for private sector research, development, and innovation.

11. Cultural Preservation

The Gyan Bharatam Mission will survey and preserve over 1 crore manuscripts.

12. Insurance & Business Reforms

The FDI limit in insurance is increased from 74% to 100%.

The Jan Vishwas Bill 2.0 will remove criminal penalties from over 100 laws.

13. Income Tax & TDS Changes

More time to file updated tax returns (from 2 years to 4 years).

Delay in Tax Collected at Source (TCS) payments will no longer be a criminal offense.

TDS on rent increased from ₹2.4 lakh to ₹6 lakh.

14. Healthcare & Essential Medicines

No customs duty on 36 life-saving drugs for treating cancer, rare, and chronic diseases.

15. Changes in Import Duties (BCD – Basic Customs Duty)

Electronics: Duty on large display panels (IFPD) increased to 20%, while duty on open cell parts is removed to support local production.

Batteries: No duty on additional capital goods for making EV & mobile batteries.

Shipbuilding: No customs duty for 10 years on raw materials used for building ships.

Food Imports: Customs duty on frozen fish paste reduced from 30% to 5%, and on fish hydrolysate from 15% to 5%.

This budget aims to reduce taxes, support farmers and small businesses, improve cities, and boost India’s economy.