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The Central government on Saturday, February 1, presented Union Budget 2025, announcing a slew of schemes and changes that would directly impact various sectors in the country. The Budget 2025 announcements have come just four days ahead of voting in the Delhi election 2025 and it was highly anticipated that some announcements could directly impact the national capital voters. While Narendra Modi has refrained from mentioning Delhi explicitly as the Model Code of Conduct (MCC) is in effect for the Assembly elections due on February 5, a few announcements may have sparked excitement among Delhi residents.
Finance Minister Nirmala Sitharaman gave taxpayers a big relief in Union Budget 2025-26 by making income up to ₹ 12 lakh tax-free from ₹ 7 lakh earlier. Factoring in the standard deduction of ₹ 75,000 for the salaried class, an income up to ₹ 12.75 lakh will be tax-free .
This income, however, excludes capital gains, which are taxed at separate short-term and long-term tax rates. But there is a catch: the exemption can be earned only if a taxpayer takes relief under various sections of the Income Tax Act, like the ₹ 1.5 lakh exemption under section 80CCC and the exemption of ₹ 1.
5 lakh for paying interest on home loans. Also Read | Modi govt drops major Income Tax rebate, INDIA bloc seeks to bring focus on Maha Kumbh mishap Nirmala Sitharaman said, “To taxpayers, up to ₹ 12 lakh of normal income (other than special rate income such as capital gains) tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them.” Taxpayers now have 4 years, instead of two, to update their Income Tax Returns.
TDS on rent has also been increased to ₹ 6 lakh from ₹ 2.4 lakh. The announcement on the Income Tax rebate was met by loud thumping of the desks by the treasury benches led by PM Narendra Modi as the chants of “Modi, Modi” reverberated across Parliament.
While no particular announcements were made for Delhi, due to the restrictions, Nirmala Sitharaman announced greenfield airports, a new National Institute of Technology (NIT) and an expansion of IIT Patna , among other announcements for Bihar, where assembly elections are scheduled later this year. A Makhana Board will also be set up in Bihar. (With agency inputs).
