Finance Bill 2025: Unprecedented Tax Relief and Strategic Economic Reforms

The Finance Bill 2025, announced by Finance Minister Nirmala Sitharaman, provides unprecedented tax relief and projects a 13.14% growth in personal income tax collection. The bill includes measures like customs duty rationalization, aimed at boosting domestic production, and an extensive review of income tax compliance for foreign assets.

Finance Minister Nirmala Sitharaman has presented the Finance Bill 2025, promising unprecedented tax relief and forecasting a 13.14 percent growth in personal income tax collections. She emphasized that the growth projections are realistic and backed by concrete data.

Notably, the Bill introduces customs duty rationalization to support local manufacturing and export competitiveness. Additionally, the government has increased the income tax rebate limit to benefit the middle class, resulting in an anticipated revenue loss of Rs 1 lakh crore for FY26.

The government's efforts also include a "nudge" campaign to correct income tax filings related to foreign assets, leading to substantial disclosures. Sitharaman highlighted that these reforms, including pension parity adjustments, reflect the Modi administration's commitment to taxpayers and economic stability.

(With inputs from agencies.)