Concerning the proposed income tax legislation for 2025, the central government has garnered over 60,000 suggestions from citizens, according to Union Finance Minister Nirmala Sitharaman. During a recent post-budget event, the Finance Minister highlighted that the review of the Income Tax Act of 1961 is a significant aspect of Prime Minister Narendra Modi’s principle of ‘Jan Bhagidari.’ “Following the Covid-19 pandemic, the government’s focus has centered on channeling funds into public expenditure for infrastructure development. The belief that there has been a shift from expenditure to consumption is inaccurate. We have increased capital expenditure (Capex) while also offering relief in Personal Income Tax,” she stated. Last week, she presented the new income tax bill for 2025 in the Lok Sabha as part of tax reforms aimed at simplifying provisions to make them easier to understand and reducing the potential for statutory disputes. Additionally, the Finance Minister expressed gratitude to PM Modi for his consideration in providing relief to taxpayers earning up to Rs 12 lakh annually. She noted, “We are steadfast in our commitment to the fiscal deficit trajectory outlined in the July Budget, targeting a deficit below 4.5 percent.” The goal of these reforms is to bolster manufacturing, enhance the ease of doing business, and upgrade social infrastructure. “Our efforts will not cease here. The momentum of reforms will persist. We are also exploring new sectors, which is evident in the recent investments in the space and nuclear sectors,” asserted the Finance Minister. She further remarked, “I anticipate that state governments will also take the initiative to promote the Ease of Doing Business.” Sectoral allocations within the budget remain unchanged, with the projected effective capital expenditure for the upcoming financial year estimated at Rs 19.08 lakh crore, as reported by FM Sitharaman. She highlighted that the effective capital expenditure represents 4.3% of GDP in the 2025-26 budget, with a projected financial deficit of 4.4%.
FINANCE MINISTRY

Concerning the proposed income tax legislation for 2025, the central government has garnered over 60,000 suggestions from citizens, according to Union Finance Minister Nirmala Sitharaman.

During a recent post-budget event, the Finance Minister highlighted that the review of the Income Tax Act of 1961 is a significant aspect of Prime Minister Narendra Modi’s principle of ‘Jan Bhagidari.’

“Following the Covid-19 pandemic, the government’s focus has centered on channeling funds into public expenditure for infrastructure development. The belief that there has been a shift from expenditure to consumption is inaccurate. We have increased capital expenditure (Capex) while also offering relief in Personal Income Tax,” she stated.

Last week, she presented the new income tax bill for 2025 in the Lok Sabha as part of tax reforms aimed at simplifying provisions to make them easier to understand and reducing the potential for statutory disputes.

Additionally, the Finance Minister expressed gratitude to PM Modi for his consideration in providing relief to taxpayers earning up to Rs 12 lakh annually.

She noted, “We are steadfast in our commitment to the fiscal deficit trajectory outlined in the July Budget, targeting a deficit below 4.5 percent.”

The goal of these reforms is to bolster manufacturing, enhance the ease of doing business, and upgrade social infrastructure.

“Our efforts will not cease here. The momentum of reforms will persist. We are also exploring new sectors, which is evident in the recent investments in the space and nuclear sectors,” asserted the Finance Minister.

She further remarked, “I anticipate that state governments will also take the initiative to promote the Ease of Doing Business.”

Sectoral allocations within the budget remain unchanged, with the projected effective capital expenditure for the upcoming financial year estimated at Rs 19.08 lakh crore, as reported by FM Sitharaman.

She highlighted that the effective capital expenditure represents 4.3% of GDP in the 2025-26 budget, with a projected financial deficit of 4.4%.