Lok Sabha passes finance bill 2025, tax relief up to Rs 12 lakh announced
Mar 25, 2025The Lok Sabha has passed the Finance Bill, 2025. The Bill seeks to give effect to the financial proposals of the Central Government for the financial year 2025-2026. Replying to the discussion on the bill, Union Finance Minister Nirmala Sitharaman said the Finance Bill 2025 provides unprecedented tax relief to honour taxpayers and ease of doing business. She said, under the new tax regime, there will be zero income tax up to the income of 12 lakh rupees. Mrs Sitharaman announced that the new income tax bill is likely to be taken up for discussion in the next monsoon session.
The minister said, as per the expectation of the people of the country and the goal of Viksit Bharat by 2047, the Union government has taken lots of measures through this Finance Bill. Mrs Sitharaman said the bill relating to customs aims to rationalise the tariff structure to address duty inversion. She added that this will support manufacturing units, promote exports, facilitate trade and provide relief to common people. Mrs Sitharaman said the Union budget 2025-26 aims to boost domestic production and enhance export competitiveness by reducing duties on raw materials.
She informed that this finance bill also proposed to remove seven custom tariff rates for industrial goods. The minister said, in the Finance Bill, the government has also proposed to include 35 products in the exempted duty list to promote battery manufacturing for electric vehicles. Besides, 28 additional capital goods have also been added to the exempted duty list for the manufacturing of mobile phone batteries. She said the decision will boost domestic manufacturing. Mrs Sitharaman said the government has also proposed to extend the period of incorporation of start-ups by five years to allow the benefits available to them which are incorporated before 1st April 2030.
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