Key announcements from the Union Budget impacting individual taxpayers, MSMEs, and corporates. Our analysis of the major changes and actionable tax-saving opportunities.
The Union Budget 2025–26 presented by the Finance Minister brought several significant changes for taxpayers across categories. Here is our analysis of the key announcements and what they mean for you.
For Individual Taxpayers
- Revised Tax Slabs (New Regime): Income up to ₹12 lakh is now effectively tax-free under the new regime after the enhanced rebate under Section 87A. This is a major relief for salaried middle-class taxpayers.
- Standard Deduction increased to ₹75,000 for salaried individuals under the new regime.
- TDS threshold changes: TDS threshold on interest income for senior citizens raised to ₹1 lakh.
For MSMEs and Small Businesses
- MSME credit guarantee scheme expanded with additional corpus allocation.
- Turnover limit for presumptive taxation under Section 44AD increased to ₹3 crore (where digital receipts exceed 95%).
- Simplified GST compliance measures announced for small businesses.
For Corporates
- Corporate tax rates unchanged at 22% for domestic companies and 15% for new manufacturing companies.
- Safe harbour rules for transfer pricing to be simplified.
- Vivad Se Vishwas Scheme 2.0 extended for pending direct tax disputes.
Capital Gains Tax Changes
Long-Term Capital Gains (LTCG) on equity and equity mutual funds remains at 12.5% for gains above ₹1.25 lakh per year. Short-Term Capital Gains (STCG) on equity remains at 20%.
Want to understand how Budget 2025–26 specifically impacts your tax liability? Contact Vadulekar & Associates at +91 98906 60719 or vaacansk@gmail.com for a personalised review.