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Budget Session, 2025 of Parliament adjourns sine-die – Productivities of Lok Sabha and Rajya Sabha during Budget Session were approximately 118% and 119% respectively – 16 Bills passed by both Houses of Parliament
The Lok Sabha passed the Finance Bill 2025 on Tuesday, March 25, along with 35 government amendments, including one abolishing a six per cent digital tax on online advertisements. With the passage of the Finance Bill 2025, the Lok Sabha completed its part of the Budgetary approval process. The Upper House, Rajya Sabha, will now consider the Bill. After the Rajya Sabha approves the Bill, the Budget process for 2025-26 will be complete.
Finance Minister Nirmala Sitharaman will present the Finance Bill in the Lok Sabha on Monday (March 24) for discussion and approval.
The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, has introduced major revisions to the tax deducted at source (TDS) rules, aimed at providing financial relief to taxpayers, especially senior citizens, investors, and commission earners. Here’s a breakdown of the key changes effective from April 1, 2025.
While the government is working on a new income tax law, they’ve also made some changes in Budget 2025, making income up to Rs 12 lakh tax-free under the new tax regime. Interestingly, there are various calculations floating around. For salaried individuals, there’s good news: even if your salary package exceeds Rs 14 lakh, you won’t owe any taxes.
Taxation Reforms are one of the key reforms to realize the vision of Viksit Bharat. In the words of the Hon’ble FM, the country aims to ensure that the new income-tax bill will carry forward the spirit of “Nyaya”. The new bill will be clear and direct in text with close to half of the present law, in terms of both chapters and words. It will be simple to understand for taxpayers and tax administration, leading to tax certainty and reduced litigation.
The Finance Minister introduced the Finance Bill, 2025 in Lok Sabha on 1st February 2025. Key changes in Customs, Central Excise and rates have been proposed through the Finance Bill, 2025.
Budget 2025 has proposed to make normal income up to Rs 12 lakh tax-free under the new tax regime for fiscal year 2025-26. This has become possible due to revised tax slabs and an enhanced rebate of Rs 60,000 under section 87A. However, ever since the announcement of revised tax slabs and rates under the new tax regime for FY 2025-26, there has been a lot of confusion about tax on incomes slightly above Rs 12 lakh. For example, what happens when a person is earning Rs 12.1 lakh or Rs 12.5 lakh?
Finance Minister Nirmala Sitharaman announced a range of taxation changes, including for both direct and indirect tax. As part of the indirect taxes, FM Sitharaman announced a rationalisation of customs tariffs, relief on import of drugs and medicines, reduction in basic customs duty for many items, and under direct taxes, rationalisation of TCS and TDS, the announcement of zero tax for income of up to Rs 12 lakh.
Even as the government announced rationalisation of income tax rates in the Budget, there is also work going on to simplify and rationalise the Goods and Services Tax (GST) regime. Discussions between Centre and states have taken place to undertake not just GST rate rationalisation but also simplify the structure, with a particular focus on doing away with the 12 per cent slab, The Indian Express has learnt.