The Indian government has introduced several key changes to income tax regulations that will come into effect from April 1, 2025. These revisions were announced during the Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, with the objective of streamlining the tax structure, easing compliance, and promoting financial inclusion.

These updates are expected to impact taxpayers across various income groups, especially those opting for the new tax regime. While these are not recommendations, staying informed can help individuals and businesses better understand the evolving tax landscape.

New Income Tax Slabs and Rates for FY 2025–26

The Centre has revised the income tax slabs under the new tax regime, offering more granularity across income levels. The updated slabs are as follows:

There are no changes announced in the old tax regime.

Increased Rebate Under Section 87A

One of the major reliefs in the new tax structure is the increase in rebate under Section 87A. The rebate limit has been increased from ₹25,000 to ₹60,000. This means individuals earning up to ₹12 lakh annually can now enjoy zero tax liability, provided they opt for the new regime.

TDS Rule Modifications

The Tax Deducted at Source (TDS) thresholds have been revised across various income categories. Notably, the TDS limit on interest income for senior citizens has been raised to ₹1 lakh, offering much-needed relief to pensioners and retired individuals.

Changes in TCS Rules

The rules governing Tax Collected at Source (TCS) have also been updated. Earlier, TCS was applicable on foreign remittances exceeding ₹7 lakh. From April 1, 2025, this threshold has been increased to ₹10 lakh. This change will influence expenses related to overseas travel, investments, and foreign education.

Extended Time Limit for Filing Updated Tax Returns

The time window for filing an Updated Income Tax Return (ITR-U) has been significantly extended. Taxpayers now have up to 48 months (4 years) from the end of the relevant assessment year to file an updated return, compared to the previous limit of 12 months.

Extended Tax Exemption for IFSC

The deadline for availing tax exemptions under the International Financial Services Centre (IFSC) framework has been extended to March 31, 2030. This move aims to bolster India’s status as a global financial hub by offering longer-term tax clarity to investors and institutions operating within the IFSC.

Start-up Tax Exemptions

Eligible start-ups registered up to April 1, 2030, will benefit from 100% tax exemption for 3 consecutive years under Section 80-IAC. However, these start-ups must meet specific conditions laid out by the Income Tax Department.

Removal of Sections 206AB and 206CCA

To simplify the compliance burden, Sections 206AB and 206CCA—which dealt with higher TDS and TCS rates for non-filers—have been scrapped. This step is expected to ease operations for both tax deductors and collectors.

Cap on Salary Paid to Partners

A new cap has been introduced on the salary payable to partners in partnership firms, placing a ceiling on the maximum deductible amount. This measure is expected to bring consistency and avoid excessive tax deductions under the guise of partner remuneration.

ULIP Taxation Aligned with Capital Gains

Unit Linked Insurance Plans (ULIPs) with annual premiums exceeding ₹2.5 lakh, or 10% of the sum assured, will now be taxed as capital gains. This ensures a level playing field between ULIPs and mutual fund investments, aligning taxation across investment instruments.

Conclusion

The upcoming changes to income tax rules from April 1, 2025, are structured to make compliance simpler and more transparent while broadening the tax base. Although this article does not offer any financial advice or recommendations, understanding these developments is essential for anyone navigating the Indian taxation system.

Taxpayers may want to stay updated and consider these reforms while planning their financial activities for FY 2025–26.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks; read all the related documents carefully before investing.

The Government of India (GoI), in consultation with the Reserve Bank of India (RBI), has released the indicative issuance calendar for marketable dated securities for the first half of the financial year 2025–26, covering the period from April 1, 2025 to September 30, 2025. 

This calendar provides valuable visibility to institutional and retail investors, enabling them to plan their investments better while bringing greater transparency and predictability to the Government Securities (G-Sec) market.

The calendar also includes planned issuances of Sovereign Green Bonds (SGrBs) as part of the broader government initiative to promote sustainable finance.

Purpose of the Issuance Calendar

The publication of this issuance calendar serves multiple objectives:

• Improved market planning: Helps investors align their strategies with upcoming supply.
  
• Enhanced transparency: Reduces uncertainty around issuance schedules.
  
• Predictable borrowing: Assists market participants in understanding the government’s borrowing pattern.
  
• Promotion of retail participation: Facilitates non-competitive bidding for eligible retail investors.

Highlights of the Issuance Schedule

The total notified amount for the period stands at ₹8,00,000 crore, spread across various maturities from 3 years to 50 years, with multiple issuances of benchmark securities.

Here are key highlights:

• Tenure Diversity: Issuances include securities of 3, 5, 7, 10, 15, 30, 40, and 50-year maturities.
  
• Green Bonds: SGrBs of ₹5,000 crore each will be issued in April and June.
  
• Auction Weeks: Weekly auctions are scheduled, typically comprising two securities.
  
• Greenshoe Option: The government reserves the right to retain an additional ₹2,000 crore for each security via the greenshoe option.

Weekly Auction Structure

Each week, one or two securities will be auctioned with predefined maturities. Below is an overview of how the securities are spread:

• Short-Term (3 to 7 Years): Allocated intermittently across the schedule, offering liquidity and flexibility.
  
• Medium-Term (10 to 15 Years): Most consistently featured, catering to long-term planning.
  
• Long-Term (30 to 50 Years): Targeted at institutional investors and insurers looking for duration plays.
  
• Green Bonds: Scheduled twice, supporting the sustainable finance ecosystem.

Facility for Retail Investors

As in previous years, a non-competitive bidding facility has been retained, with 5% of the notified amount reserved for specified retail investors. This inclusion promotes wider retail participation in the G-Sec market, supporting the objective of financial inclusion.

Flexibility in Issuance

While the calendar serves as an indicative guide, the GoI retains the flexibility to modify:

• The notified amounts
  
• Issuance timelines
  
• Maturities and instrument types
  

This adaptability ensures responsiveness to evolving market dynamics and funding requirements.

The government may also introduce non-standard instruments such as:

• Floating Rate Bonds (FRBs)
  
• Inflation-Indexed Bonds (IIBs)
  

Any changes will be communicated via official press releases, ensuring stakeholders remain informed.

Switch Auctions

To manage the maturity profile of existing debt, the RBI will conduct switch auctions—allowing for the exchange of one security for another—on the third Monday of every month, or the fourth if the third is a public holiday.

This mechanism helps manage redemption pressures and maintain a balanced debt profile.

Conclusion

The issuance calendar for April to September 2025 offers structured visibility into the government’s borrowing plans. With ₹8 lakh crore worth of marketable dated securities, including Sovereign Green Bonds, it underscores the government’s balanced approach to funding while catering to both institutional and retail investors.

While this blog provides a comprehensive outline of the issuance calendar, it is important for investors to stay informed through official RBI and GoI updates, especially in case of changes to the indicative schedule.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks; read all the related documents carefully before investing.

The Government of India, in collaboration with the Reserve Bank of India (RBI), has finalised its market borrowing programme for the first half (H1) of the financial year 2025–26. The plan aims to ensure a stable borrowing calendar while supporting fiscal operations and providing clarity to financial markets.

Gross Market Borrowing for H1 FY26

Of the total budgeted gross market borrowing of ₹14.82 lakh crore for FY 2025–26, the Government will borrow ₹8.00 lakh crore (or 54%) during H1 through dated securities. This includes the issuance of ₹10,000 crore in Sovereign Green Bonds (SGrBs).

The borrowing will be conducted via 26 weekly auctions and will involve a mix of short-, medium-, and long-term maturities.

Maturity-Wise Allocation

The Government has structured its borrowing programme to distribute funds across a broad maturity spectrum:

• 3-year: 5.3%
  
• 5-year: 11.3%
  
• 7-year: 8.2%
  
• 10-year: 26.2%
  
• 15-year: 14.0%
  
• 30-year: 10.5%
  
• 40-year: 14.0%
  
• 50-year: 10.5%
  

This structure supports liquidity and helps develop a robust yield curve.

Green Bonds and Redemption Management

In line with the Government’s sustainability goals, ₹10,000 crore of the borrowing will be through Sovereign Green Bonds to fund environment-friendly initiatives.

Additionally, the Government plans to conduct security switching and buybacks to manage redemption pressure and smooth its repayment obligations.

Use of Greenshoe Option

To handle market dynamics better, the Government has retained the right to use a greenshoe option, allowing it to accept up to ₹2,000 crore extra in each auction over and above the notified amount, depending on demand.

Treasury Bill Issuance in Q1

Short-term funding needs will be met through Treasury Bills (T-bills), with a weekly issuance of ₹19,000 crore expected in Q1 FY26. The breakup is:

• 91-day T-bills: ₹9,000 crore
  
• 182-day T-bills: ₹5,000 crore
  
• 364-day T-bills: ₹5,000 crore
  

These instruments are important for managing liquidity and short-term fiscal needs.

WMA Limit Set at ₹1.5 Lakh Crore

To address temporary mismatches in its cash flows, the RBI has fixed the Ways and Means Advances (WMA) limit at ₹1.50 lakh crore for H1 of FY26. This provides the Government with operational flexibility without adding pressure on market borrowings.

Conclusion

The borrowing roadmap for H1 FY 2025–26 demonstrates a structured approach to public debt management. With a balanced mix of tenures, inclusion of green bonds, and mechanisms like buybacks and greenshoe options, the strategy is designed to maintain market confidence while supporting the Government’s fiscal priorities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks; read all the related documents carefully before investing.

India’s bioeconomy has seen extraordinary growth over the last decade, expanding from $10 billion in 2014 to $165.75 billion by 2024.

This sixteen-fold growth is not just a statistical feat—it marks a broader transformation driven by the country’s vision of aligning biotechnology with sustainability, digital innovation, and inclusive development.

With a contribution of 4.25% to the national GDP and a CAGR of 17.9% over the last 4 years, India’s bioeconomy is becoming a critical pillar in its aspiration to be a knowledge-led, future-ready economy.

What is the Bioeconomy?

At its core, the bioeconomy involves the sustainable use of renewable biological resources—such as crops, animals, and microbes—to produce food, energy, and industrial goods. It integrates cutting-edge technologies such as gene editing and bioprinting with the principles of the circular economy.

The goal is to reduce dependence on fossil fuels, enhance food and health security, and create eco-friendly alternatives for a range of products.

India’s Vision for a Thriving Bioeconomy

India’s roadmap for the bioeconomy is ambitious yet grounded in innovation-led, inclusive growth. It aims to emerge as a global hub for biomanufacturing by investing in R&D, nurturing talent, and building infrastructure. 

A target of achieving a $300 billion bioeconomy by 2030 has been set, with special emphasis on areas like bio-pharma, diagnostics, vaccines, and sustainable industrial biotechnology. This effort is part of the broader India@2047 vision that emphasises green growth and self-reliance.

BioE3 Policy: Biotechnology for Economy, Environment, and Employment

The BioE3 Policy, approved in August 2024, is a strategic leap in transforming India into a global biotechnology leader. It promotes high-performance biomanufacturing while addressing economic development, environmental sustainability, and employment generation.

Key Highlights:

• Green Manufacturing: Encourages a shift from chemical-based industries to bio-based alternatives with low carbon footprints.

• Circular Bioeconomy: Supports regenerative models aligned with net-zero emission goals.

• Infrastructure Development: Proposes bio-foundries, bio-AI hubs, and advanced biomanufacturing centres to facilitate product development.

• Job Creation: Focuses on generating employment, especially in tier-II and tier-III cities.

• Global Standards: Emphasises biosafety and regulatory alignment to enhance global competitiveness.

National Biopharma Mission: Driving Biotech Excellence

The National Biopharma Mission (NBM) – Innovate in India (i3), launched by the Department of Biotechnology and implemented by BIRAC, aims to strengthen India’s biopharmaceutical sector. With a $250 million budget (half funded by the World Bank), the mission supports public-private partnerships to foster innovation in vaccines, biosimilars, and diagnostics.

Notable Achievements:

• 11 shared testing and manufacturing facilities established

• Over 1,000 new jobs created

• Support for more than 100 projects across 150 organisations

• Development of the world’s first DNA COVID-19 vaccine

• India now manufactures 65% of the world’s vaccines

• Initiatives underway for the first indigenous HPV vaccine

Agricultural Biotechnology: A New Green Revolution

Agriculture is a key area where biotechnology is making a tangible impact. Innovations under the Department of Biotechnology’s Agricultural programme are reshaping Indian farming practices.

Highlights:

• SAATVIK Chickpea: Drought-resistant and high-yielding, now approved for cultivation.

• Edited Rice Varieties: Gene-edited rice lines showing improved yields.

• SNP Arrays: Tools like IndRA (for rice) and IndCA (for chickpea) help in genetic profiling.

• Nano Biocontrol: Environmentally friendly solution to powdery mildew in tomatoes and grapes.

• Kisan-Kavach: A pesticide-protective suit improving farmer safety.

Biotech-KISAN: Empowering Farmers Through Innovation

The Biotech-Krishi Innovation Science Application Network (Biotech-KISAN) fosters a collaborative environment between scientists and farmers. The programme is particularly focused on women, rural communities, and tribal areas.

Features:

• Operates in 115 Aspirational Districts

• Uses a hub-and-spoke model to spread innovation

• Encourages region-specific scientific interventions

BIRAC: The Backbone of Biotech Startups

Established in 2012, the Biotechnology Industry Research Assistance Council (BIRAC) is instrumental in nurturing India’s biotech startup ecosystem. Through incubation, funding, and mentoring, BIRAC has enabled innovation across a wide spectrum of biotech areas.

Key Initiatives:

• BIG (Biotechnology Ignition Grant): Up to ₹50 lakh for early-stage innovation

• SEED Fund: ₹30 lakh for proof-of-concept stage startups

• LEAP Fund: ₹100 lakh to support commercialisation

• जनCARE Challenge: Boosting digital health solutions in tier-II, III, and rural India. 

Conclusion: A Bio-Enabled Future for India

India’s bioeconomy story is a blend of policy support, technological advancement, and inclusive innovation. As the country looks ahead to 2030 with the goal of reaching a $300 billion bioeconomy, the focus remains on balancing growth with sustainability.

From affordable healthcare and green manufacturing to precision agriculture and digital health, the biotechnology sector is setting the foundation for India’s next economic leap—one that is resilient, inclusive, and environmentally conscious.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks; read all the related documents carefully before investing.