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If you are in your 30s, it is working in an urban city, the Union Budget 2025 has brought some significant changes for you. Many things were said on the announcement of the budget, it can be a little confused for anyone.
However, with the cost of growing, inflation concerns and rapidly developed job market, it is important to understand how the budget affects your financial decisions. Whether you are doing 9 -to -5 work, freelancing, or startups, these policy changes will affect your savings, investment, taxes and overall financial planning.
Here is how this budget will affect your finance.
More tax-free income and standard deduction
Let’s start with the biggest win for salary people: Tax-free income threshold is now before ₹ 12 lakh (before ₹ 7 lakh). If you earn under it, congratulations-you are officially tax-free! For more earning people, slab modification means outgoing outgo. The standard deduction for salaried persons has jumped ₹ 75,000 (first ₹ 50,000). This is directly ₹ 25,000 in your pocket. Use it to pay that credit card bill.
More money at your disposal, more money for savings!
TDS and TCS reform
Several tax deductions and collections have been introduced on sources (TDS/TCS) reforms, including an increased TDS exemption limit at Senior Citizen Bank deposit (now ₹ 1 lakh per year), not up to ₹ 6 lakh on rental income , And A. High TDS exemption limit on dividend income at ₹ 10,000. Additionally, TCS exemption has been increased to ₹ 10 lakh under the liberal remittance scheme.
This means that if you invest rental properties, dividends or international levels, you will experience low cuts at the source, which will give you better liquidity.
Tax relief on savings and property
Withdrawal from the National Savings Scheme after August 29, 2024 will be tax-free for zodiac signs that were eligible for the first deduction. The contribution to the NPS Vatsalya Yojana now qualifies for deduction under Section 80CCD, which makes the retirement scheme more beneficial. In addition, home owners can now claim NIL annual value for two self-conscious assets without additional circumstances. This property makes investment more attractive.
Healthcare and cost reduction
In a major win for gig workers, the healthcare benefits will now be extended under the PM Jan Arogya Yojana, which ensures access to necessary medical services. Additionally, 36 life -saving drugs are completely freed from duties and taxes, making important drugs more inexpensive.
This means that if you are a freelancer or rely on the necessary medicines, these improvements will significantly reduce your health care expenses.
Support for entrepreneurs and MSMEs
The government has increased the MSME Credit Guarantee, allowing small businesses to reach a large credit range. To support the startup, a fund of 10,000 crore funds has been introduced, making it easier for entrepreneurs to secure financing.
If you are the master of a small business or thinking of launching a startup, it became easy for you to get the fund.
Most important
The deadline for filing update tax returns has increased from 24 months to 48 months. If necessary, more time to fix the previous tax filing, reducing stress on missed reporting.
