The Union Budget 2025 introduced several significant changes to direct and indirect taxation that will impact businesses across all sectors. Here is a comprehensive analysis.
The Union Budget 2025 presented by the Finance Minister has introduced several landmark changes to India's tax landscape. From revised income tax slabs for individuals to changes in corporate tax provisions and GST rationalization, businesses need to be well-prepared for the year ahead.
Personal Income Tax Changes
The new tax regime has been made more attractive with revised slabs. Individuals earning up to ₹7 lakh are now completely exempt under Section 87A. The basic exemption limit under the new regime has been raised to ₹3 lakh.
Corporate Tax Provisions
No changes have been made to the existing corporate tax rates. However, the surcharge on domestic companies has been rationalised. New manufacturing companies set up after October 2019 can continue to avail the 15% concessional tax rate.
GST Rationalization
The GST Council has been empowered to further rationalize rates. Several goods have been moved to lower tax brackets, benefiting consumers and MSMEs alike.
What Should Businesses Do?
Businesses should immediately review their tax planning strategies in light of these changes. It is advisable to consult with qualified tax advisors to ensure optimal tax efficiency while maintaining full compliance.