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Financials
The Lok Sabha has passed the Finance Bill 2025, which includes 35 significant government amendments aimed at transforming India's fiscal policies. This move aligns with the government's vision of making India a developed country by 2047, as emphasized by Finance Minister Nirmala Sitharaman[1][2]. The bill is expected to have profound impacts on individual taxpayers, businesses, and the overall digital economy in India.
Budget Expenditure and Revenue
Resource Transfer and Schemes
The new income tax regime will become the default option from April 1, 2025. Taxpayers must explicitly choose to continue under the old regime each year if they prefer not to switch[1].
Revised Income Tax Slabs for the New Regime:
| Income Tax Slabs (Rs.) | Income Tax Rate | |-------------------------|------------------| | 0 to 4,00,000 | 0% | | 4,00,001 to 8,00,000 | 5% | | 8,00,001 to 12,00,000 | 10% | | 12,00,001 to 16,00,000 | 15% | | 16,00,001 to 20,00,000 | 20% | | 20,00,001 to 24,00,000 | 25% | | 24,00,001 and above | 30% |
The removal of the 6% digital advertising tax is expected to significantly benefit online businesses and startups. This move aims to foster a stronger digital economy in India by reducing compliance burdens and encouraging investments in the digital sector[2].
The government has strengthened legal provisions to track digital assets, enhancing the ability to investigate financial transactions through communication platforms and enterprise software. This move marks a crucial step in regulating digital assets within the Indian economy[1].
The Finance Bill 2025 is poised to reshape India's economic landscape, offering significant tax relief and investments in key sectors like infrastructure and digital services. As Indians await these changes, the bill's approval by the Rajya Sabha will be crucial for its full implementation. The government's measures aim to enhance economic growth while simplifying tax policies and supporting businesses, particularly in the rapidly expanding digital sector.