Union Budget 2025: Key Highlights & Summary-Tax Returns, Battery Production More

Discover the key highlights of the Union Budget 2025, including increased income tax return timelines, boosted battery production, and significant allocations for research and housing. Learn about ...

INDIA NEWSBUDGET

Won India Editor

2/1/20252 min read

Introduction to the Union Budget 2025

The Union Budget 2025 presents a significant blueprint outlining the government's economic strategies aimed at fostering growth, enhancing productivity, and driving technological advancements across various sectors. As the nation anticipates the outcomes, here are the key highlights summarized point by point.

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Major Initiatives and Changes

1. **Boosting Battery Production**: To stimulate the manufacturing of electric vehicle (EV) batteries as well as mobile batteries, the government has exempted additional capital goods related to these sectors from taxation.

2. **Updated Income Tax Returns**: The time limit for filing updated income tax returns has been significantly increased from the previous two years to four years, providing taxpayers with enhanced flexibility and time.

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3. **Decriminalization of TCS Payment Delays**: In a bid to ease compliance burdens, the government has decriminalized delays in tax collection at source (TCS) payments, thereby reducing potential legal repercussions for taxpayers.

4. **Increase in TDS on Rent**: The threshold for Tax Deducted at Source (TDS) on rent has been raised from ₹2.4 lakh to ₹6 lakh, thereby reducing the tax burden on individuals renting their homes.

5. **Funding for R&D Initiatives**: A substantial allocation of ₹20,000 crore has been earmarked for private sector-driven research, development, and innovation initiatives, highlighting the government's commitment to advancing scientific and technological capabilities.

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Enhancing Regional Connectivity and Housing Sector

6. **Modified UDAN Scheme**: The UDAN scheme has been modified to enhance regional connectivity, with an aim to connect 120 new destinations, facilitating easier intercity travel and promoting tourism.

7. **Establishment of SWAMIH Fund**: A dedicated fund amounting to ₹15,000 crore will be instituted to ensure the expeditious completion of an additional 1 lakh stressed housing units, assisting in addressing the housing crisis in the country.

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8. **Nuclear Energy Mission**: The Union Budget introduces a nuclear energy mission focused on the research and development of small modular reactors, supported by an allocation of ₹20,000 crore. This initiative underscores the government’s commitment to sustainable energy solutions and innovation in energy technology.

Conclusion

The Union Budget 2025 effectively outlines a strategic vision geared towards propelling India into a future of enhanced economic growth and innovation. These key highlights reflect careful planning aimed at achieving significant milestones in various sectors, and they offer a glimpse into the government's priorities for the coming years.