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Union Budget 2025: 7 Tax Breaks, ₹12L Exemption & Nuclear Power Surge That Will Reshape India

Updated: 01-02-2025, 06.28 PM

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Union Budget 2025 key announcements- Tax reforms and nuclear power mission.

Finance Minister Nirmala Sitharaman unveiled India’s most taxpayer-friendly budget yet, raising the income exemption limit to ₹12 lakh and turbocharging nuclear energy to 100GW by 2047. But with a ₹1 lakh crore Urban Challenge Fund and controversial disinvestment plans, will this budget fuel India’s $10 trillion dream—or spark backlash? Here’s your 5-minute breakdown.

Middle Class Wins Big: Tax & Savings

  • New Tax Regime:
    • Exemption hiked to ₹12L/year (vs. ₹7L earlier).
    • TDS rules simplified: No deductions on deposits under ₹5L.
  • EPF Boost: Interest rates raised by 0.5% for accounts under ₹10L.

Quote“This puts ₹50,000/year back in salaried pockets,” – CA Rakesh Singh, EY India.

Farmers & Rural India: Cotton, Credit & Fertilizers

  • Kisan Credit Card: Loan limit doubled to ₹5L.
  • Cotton Revolution: 5-year mission for extra-long staple cotton (textile exports to hit $100B by 2030).
  • Urea Self-Reliance: 12.7L MT plant in Assam to cut imports by 40%.

Poll“Will the ₹5L credit limit help farmers? Vote Yes/No.”

Cities as Growth Engines

  • Urban Challenge Fund: ₹1L crore for metro expansions, water projects, and smart cities.
    • Mumbai Example: Coastal Road Phase 2 to get ₹8,000cr.
  • PPP Push: Private firms to fund 50% of projects via bonds.

Gig Workers & Nuclear Power: Bold Bets

  • Gig Economy Formalized: Health insurance for 15M delivery riders/drivers.
  • Nuclear Surge: 100GW target by 2047 (10x current capacity).
    • Controversy: Activists warn of land acquisition battles.

Risks & Backlash

  • Fiscal Deficit: 4.4% target called “optimistic” by Moody’s.
  • Disinvestment Fears: LIC stake sale could trigger market jitters.

Quote“Selling PSUs to fund welfare is a short-term fix,” – Former RBI Governor Raghuram Rajan.

What the USA/NRIs Need to Know

  • NRI Property Rules: Easier documentation for flats under ₹5cr.
  • Tech Partnerships: Silicon Valley firms get tax breaks for AI R&D in Bengaluru/Hyderabad.

5 Immediate Actions

  1. Switch to the New Tax Regime by March 2025.
  2. Farmers: Apply for Kisan Credit Cards.
  3. Gig Workers: Register on e-Shram portal for benefits.
  4. Investors: Buy IREDA bonds for nuclear energy tax rebates.
  5. Homebuyers: Pre-book properties before disinvestment-driven price hikes.

Final Note

While the budget’s ₹12L tax exemption and nuclear push are headline-grabbers, its success hinges on execution. Will Modi’s “reform and perform” mantra deliver? Only 2025 will tell—but for now, middle India is cheering.

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