Finance Minister Nirmala Sitharaman presented the Union Budget 2025, offering significant tax relief to the middle class. The new tax bill increases the income tax exemption limit to ₹12 lakh, with an effective limit of ₹12.75 lakh after a ₹75,000 standard deduction. Senior citizens also benefit as the TDS exemption on interest income rises from ₹50,000 to ₹1 lakh.
Key Announcements:
- Tax Benefits for Homeowners: Taxpayers can now declare two self-occupied properties for tax exemption. The TDS limit on rental income is raised from ₹2.4 lakh to ₹6 lakh.
- Higher TCS Limit for Students Abroad: Tax Collected at Source (TCS) exemption for overseas education increased from ₹7 lakh to ₹10 lakh.
- Fixed Deposit Tax Relief: TDS on FD interest now applies only if earnings exceed ₹50,000, up from ₹40,000.
- SWAMIH Fund-2: ₹15,000 crore fund announced to complete 1 lakh stalled housing projects, benefiting homebuyers.
