India, February 1 (HBTV): Finance Minister Nirmala Sitharaman on Saturday, February 1, presented her Union Budget 2025-26 with a booster to the middle class. She announced that no income tax would be payable for annual income up to ₹12 lakh.

She also announced that the annual limit for TDS on rent has been raised from ₹2.40 lakh to ₹6 lakh, benefiting small taxpayers receiving smaller payments.

In a move aimed at formalising the gig economy, Sitharaman announced that the government will provide identity cards and registration for gig workers. The initiative is expected to enhance social security and streamline benefits for the country’s growing freelance and contractual workforce.

The finance minister unveiled a new scheme to position India as a global hub for toy manufacturing. The initiative will focus on cluster development, skill-building, and improving the manufacturing ecosystem to promote high-quality, innovative, and sustainable Indian-made toys.

To strengthen the rural economy, Sitharaman launched the Dhan Dhanya Krishi Yojana, which will be implemented in 100 districts across the country. The scheme aims to benefit 1.7 crore farmers, create rural job opportunities, and reduce migration by making agriculture more lucrative.

Sitharaman made history today as the only finance minister to deliver eight consecutive budget speeches. The Budget, which comes as Prime Minister Narendra Modi’s government began its third term, is being closely watched for its measures to address economic slowdown and fiscal challenges.

Finance Minister Nirmala Sitharaman announced the launch of a Nuclear Energy Mission for the research and development of Small Modular Reactors (SMRs) with an outlay of ₹20,000 crore.

Finance Minister Nirmala Sitharaman said the loan limit under the Kisan Credit Card scheme will be increased to ₹5 lakh from the current limit of ₹3 lakh.

Sitharaman said the Kisan Credit Cards would facilitate short-term loans for 7.7 crore farmers, fishermen, and dairy farmers.

FM exempts cobalt, lithium-ion scrap from duty, hikes panel display taxThe government has exempted cobalt products, LED, zinc, lithium-ion battery scrap, and 12 critical minerals from basic Customs Duty (BCD).

Sitharaman also confirmed that the exemption of BCD on raw materials and components used in ship manufacturing will continue for another 10 years.

The finance minister also proposed to increase the basic customs duty on interactive flat panel displays from 10% to 20% and reduce the duty on open cells and other components to 5% to boost the Make in India initiative.

She also proposed to boost the manufacture of open cells for LCD and LED televisions by exempting them from customs duty. The government had earlier reduced the customs duty from 5% to 2.5%.

Here is the list of items fully exempted from Basic Customs Duty:

• 36 life-saving drugs to be added to the list of medicines fully exempt.
• 35 additional capital goods for EV manufacturing.
• Wet blue leather.
• Lithium batteries scrap.
• Cobalt products.
• LED.
• Zinc.
• 12 critical minerals.
• Duty reduced from 30% to 5% on fish paste.

She also announced key developments to enhance India’s infrastructure landscape through the PM Gati Shakti initiative. The government will make PM Gati Shakti data accessible to the private sector, opening doors for improved collaboration and efficiency in infrastructure projects.

Sitharaman announced key changes to the Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) framework in the Budget 2025. The government aims to simplify tax deduction and collection at source.

Further, 50,000 Atal Tinkering Labs, the Bhartiya Bharat Pustak scheme, and IIT expansion are envisaged to drive India’s innovation boom. Sitharaman outlined a comprehensive vision for India’s education and skilling ecosystem, with a strong emphasis on fostering scientific innovation and expanding premier institutions like IITs.  

(Inputs from various agencies)