Budget 2025: Key Personal Finance Changes from Last Year’s Budget and Their Impact on Taxpayers

Budget 2025: Date and Time Details

Finance Minister Nirmala Sitharaman will present the Union Budget 2025 on February 1, 2025. The budget speech is scheduled to start at 11:00 AM in the Lok Sabha.

You can watch the live broadcast on Doordarshan, Sansad TV, and the Parliament’s official channels. The budget will also be streamed on the government’s official YouTube channels.

Major Changes in Budget 2024

The Budget 2024, presented on July 23, 2024, after the general elections, brought significant changes to personal finance, especially for taxpayers. Let’s revisit these changes and their implications as we prepare for the upcoming Budget 2025.

1. Capital Gains Tax Overhaul

• Short-Term Capital Gains (STCG): Previously taxed as per income tax slabs, STCG on financial assets was taxed at a flat 20%.
• Long-Term Capital Gains (LTCG): The rate was reduced from 20% to 12.5% on all assets, financial and non-financial.
• Exemption Limit: The exemption for LTCG was raised from ₹1 lakh to ₹1.25 lakh.

2. Options for Pre-Budget Property Buyers

Taxpayers owning properties purchased before July 23, 2024, were given 2 options:

• Pay 20% tax with the indexation benefit, or
• Pay 12.5% tax without the indexation benefit.

3. Standard Deduction Increase

For salaried individuals, the standard deduction was surged from ₹50,000 to ₹75,000, providing additional tax relief.

4. Family Pension Deduction Raised

The deduction limit for family pensions increased from ₹15,000 to ₹25,000, benefiting pensioners.

5. Angel Tax Abolished

Angel tax, previously imposed on certain investors, was removed for all classes of investors, promoting investment opportunities.

6. New Tax Regime Slabs

A revised tax slab structure was introduced under the new tax regime:

• No tax for income up to ₹3 lakh.
• 5% for ₹3–7 lakh.
• 10% for ₹7–10 lakh.
• 15% for ₹10–12 lakh.
• 20% for ₹12–15 lakh.
• 30% for income above ₹15 lakh.

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.