Budget and You: How will Budget 2025 impact your money?

Finance Minister Nirmala Sitharaman presented the Union Budget 2025 on February 1, introducing key reforms that will enthuse taxpayers, simplify taxation, boost foreign investment and enhance financial inclusion. Highlights included nil tax for income up to Rs 12 lakh, a New Income Tax Bill, rationalised TDS/TCS limits and expanded benefits for homeowners. Here, we break down the biggest Budget 2025 announcements and what they mean for you at a personal level. Zero tax for income up to Rs 12 lakh You don't have to pay any income tax if your annual income is Rs 12.75 lakh (up to Rs 12 lakh and an additional Rs 75,000 standard deduction). The table below shows the modified tax slabs under the new tax regime. Previously, this limit was Rs 7 lakh (Rs 7.75 lakh with standard deduction) under the new regime. TDS and TCS revisions While income tax changes have brought major relief to taxpayers, TDS (tax deducted at source) and TCS (tax collected at source) have also been revised. The TDS threshold on interest incom