Union Budget 2025: Finance Minister Nirmala Sitharaman made several announcements in the Union Budget 2025-26, providing significant relief to the middle class while boosting the economy. Here’s a look at what the common man received in this budget.
Finance Minister Nirmala Sitharaman made efforts in Budget 2025 to provide significant relief to the salaried class, farmers, senior citizens, and small businesses. Under the new tax regime, salaried individuals can enjoy tax exemption on annual incomes up to ₹12.75 lakh, while non-salaried individuals can get the same relief up to ₹12 lakh. However, those with incomes higher than these limits will be required to pay taxes as per the applicable slabs. Additionally, the loan limit for the Kisan Credit Card (KCC) has been increased from ₹3 lakh to ₹5 lakh, benefiting 7.7 crore farmers, fishermen, and dairy farmers. To enhance air connectivity, 120 new cities will be added under the UDAN scheme, strengthening connections across the country, including the northeastern regions.
Income Tax Relief for the Middle Class
Finance Minister Nirmala Sitharaman provided significant relief to the middle class, particularly the salaried class, in Budget 2025-26. Under the new tax regime, salaried individuals will get tax exemption on annual incomes up to ₹12.75 lakh, and non-salaried individuals up to ₹12 lakh. However, those whose income exceeds these limits will have to pay taxes as per the applicable tax slabs. It is important to note that capital gains, lottery winnings, and other such incomes are excluded from this exemption.
Increase in Kisan Credit Card Limit to ₹5 Lakh
In a bid to promote the agricultural sector, Finance Minister Nirmala Sitharaman announced six new schemes and raised the loan limit for subsidized Kisan Credit Cards (KCC) from ₹3 lakh to ₹5 lakh. This move will benefit 7.7 crore farmers, fishermen, and dairy farmers by providing quick access to loans. With the addition of new routes, around 4 crore new passengers will be able to access improved air connectivity.
120 New Cities to be Added Under UDAN Scheme
In her budget speech, Finance Minister Nirmala Sitharaman announced the addition of 120 new flight routes under the UDAN scheme. The budget also allocated funds for upgrading airports and enhancing connectivity in the northeastern region. A new plan was also unveiled to improve connectivity in northeastern areas.
TDS Exemption Limit for Rent Increased to ₹6 Lakh
In Budget 2025, Finance Minister Nirmala Sitharaman raised the TDS (Tax Deducted at Source) exemption limit on rent payments to ₹6 lakh per year, up from ₹2.4 lakh previously. Under this change, TDS will no longer be deducted on rent payments up to ₹6 lakh annually. This change will benefit small businesses and individual taxpayers, making the TDS deduction and filing process easier. Moreover, landlords will now be able to receive up to ₹6 lakh in rent without any TDS deduction.
Relief for Senior Citizens on TDS
In the 2025-26 Budget, Finance Minister Nirmala Sitharaman increased the minimum income threshold for TDS (Tax Deducted at Source) on interest income. For senior citizens, the TDS exemption limit on interest income has been raised from ₹50,000 to ₹1 lakh per annum. Furthermore, under the Reserve Bank of India’s liberalized remittance scheme (LRS), TCS (Tax Collected at Source) will now apply to amounts over ₹10 lakh, up from ₹6 lakh, for money sent abroad.
