Union Budget 2025: ₹12 Lakh Tax-Free, Healthcare for Gig Workers & More
The Union Budget 2025 has introduced several groundbreaking measures aimed at boosting economic growth and improving citizens’ quality of life. From a significant tax relief for middle-income groups to better healthcare provisions for gig workers, the budget presents a comprehensive framework for inclusive development.
New Income Tax Slabs for 2025
| Income Range (₹) | Tax Rate |
|---|---|
| 0 – 4 lakh | Nil |
| 4 – 8 lakh | 5% |
| 8 – 12 lakh | 10% |
| 12 – 16 lakh | 15% |
| 16 – 20 lakh | 20% |
| 20 – 24 lakh | 25% |
| Above 24 lakh | 30% |
Income Tax Exemption Limits Over the Years
| Year | Exemption Limit (₹) |
| 2005 | 1 lakh |
| 2012 | 2 lakh |
| 2014 | 2.5 lakh |
| 2019 | 5 lakh |
| 2023 | 7 lakh |
| 2025 | 12 lakh |
Key Highlights of Union Budget 2025
1. No Tax for Income up to ₹12 Lakh
One of the most remarkable announcements in the budget is the increase in the income tax exemption limit. Individuals earning up to ₹12 lakh annually are now exempt from paying income tax. This move is expected to benefit millions of taxpayers, fostering higher disposable incomes and boosting consumer spending.
2. Healthcare Coverage for Gig and Platform Workers
Recognizing the growing gig economy, the government has announced a dedicated healthcare scheme for gig and platform workers. This initiative aims to provide comprehensive health insurance and wellness benefits, ensuring financial security and better living standards for freelancers, delivery personnel, and other independent contractors.
3. Focus on Green Energy and Sustainability
To combat climate change and reduce dependence on fossil fuels, the government has allocated substantial funds to promote renewable energy projects. Incentives for electric vehicle (EV) manufacturing and solar energy adoption have been expanded.
4. Boost for Startups and MSMEs
Startups and Micro, Small, and Medium Enterprises (MSMEs) are set to benefit from relaxed compliance norms and increased credit support. A ₹50,000 crore fund has been established to provide affordable loans to budding entrepreneurs and existing small businesses.
5. Enhanced Infrastructure Development
The government plans to accelerate infrastructure development with a special emphasis on rural areas. Investments in road networks, public transport, and digital connectivity aim to enhance economic integration and improve citizens’ access to essential services.
6. Strengthening of the Digital Economy
To further the digitalization agenda, the budget proposes several measures, including the rollout of 5G networks in rural and underserved areas. Additional funds have been allocated for digital literacy programs to equip citizens with the skills needed for the evolving job market.
7. Education and Skill Development
A renewed focus on education has been highlighted with increased funding for vocational training and digital learning platforms. Initiatives to bridge the skill gap and make young professionals job-ready have also been outlined.
8. Women and Social Welfare Programs
To promote women’s empowerment, the government has launched new financial support schemes for female entrepreneurs. Social welfare programs for marginalized communities have received increased budgetary allocations.
9. Agriculture and Rural Development
The agricultural sector gets a significant push with subsidies for modern farming equipment, incentives for organic farming, and better irrigation facilities. The rural employment guarantee scheme has been further strengthened.
Why This Budget Matters
The Union Budget 2025 reflects the government’s commitment to fostering a robust, inclusive, and sustainable economy. By focusing on tax relief, healthcare, digital infrastructure, and sustainability, the budget addresses key challenges while creating opportunities for growth and development.
Conclusion
The changes introduced in the Union Budget 2025 have the potential to positively impact individuals, businesses, and the broader economy. Whether it’s the significant tax exemption or improved healthcare access for gig workers, these measures are poised to drive progress and enhance living standards across the nation.