Union Budget 2025 Highlights & Announcements: No income tax payable up to income of ₹12 lakh in N...

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Union Budget 2025: A Comprehensive Overview and Expert Insights
Mergers & Acquisitions: Streamlining the Process
The 2025 budget proposes simplifying M&A procedures, making these transactions easier. This, combined with a regulatory reforms committee focused on trust-based economics and ease of doing business, signals the government's intent to stimulate economic activity. Further decriminalization of over 100 legal provisions adds another layer of encouragement for businesses.
“The Hon’ble Finance Minister announced that the merger process will be accelerated through a simplified Fast Track Merger framework, along with an expanded scope to facilitate smoother and more efficient mergers.” - Dhruv Chopra, Managing Partner, Dewan P N Chopra & Co
Relaxation in fast-track merger provisions will help entities to opt for fast-track route which will reduce the timelines and compliance required as compared to NCLT route of merger. - Anish Shah, Partner, M&A Tax and Regulatory Services, BDO India
Scope of fast-track mergers to be expanded to reduce timeline for consolidations - Prashant Bhojwani, Partner, Corporate Tax, Tax & Regulatory Services, BDO India
MSME Sector: Empowering Small Businesses
India's vast postal network, with a significant rural presence, is set for a transformation. The budget proposes converting post offices into logistics hubs, offering entrepreneurs, women, and MSMEs access to an extensive network. This leverages a national asset to empower small businesses.
"Significant increase in limits of turnover and investment for classification as MSME would facilitate a lot of companies to get classified as MSMEs and thereby become eligible for MSME benefits, including access to credit. This measure, coupled with setting up of a new Fund of Funds, with additional funding to start-ups is likely to fuel further growth for start-ups/early stage companies” - Nitesh Mehta, Partner, M&A Tax and Regulatory Services, BDO India
Startup Ecosystem: Fueling Innovation and Growth
A dedicated fund of funds, boosted by an additional INR 10,000 crore, will support startups in 27 key sectors, bringing the total allocation to INR 20,000 crore. This injection of capital aims to accelerate entrepreneurship and startup growth. Further promoting innovation, INR 20,000 crore will be invested in research and development, including a deep tech fund of funds. 10,000 fellowships at institutions like IITs will further nurture innovation hubs.
“Government to increase its commitment by Rs.10,000 crore to setup New Fund of Funds (FoF) to encourage startups in AIF. The FoF for startups with commitments for over Rs 9 lakh crore will encourage the new startups to pool capital via the booming AIF sector.” - Manoj Purohit, Partner & Leader, FS Tax, Tax & Regulatory Services, BDO India
“Increase in Credit guarantee for MSME startups from Rs.10 crore to Rs.20 crore will promulgate the much need ask from the startup sector in larger chunk of capital infusion. Also, the banking sector will aid to expand their lending capacity to such startup companies.” - Manoj Purohit, Partner & Leader, FS Tax, Tax & Regulatory Services, BDO India
Tax Reforms: Simplifying Compliance and Building Trust
A new Income Tax Bill, designed for clarity and ease of understanding, is on the horizon. This revamp of the existing 64-year-old Act aims to simplify tax compliance. Reinforcing a trust-based approach, the government emphasized "trust first, scrutinize later," signifying a shift towards easier compliance.
“Hon’ble Finance Minister Just announced that New Income Tax Bill will be introduced next week. The New Income Tax Bill is expected to revamp the 64 years old Act. The new Inncome tax bill is proposed to make tax compliance easier for taxpayers and make the Income Tax Act easier to read and understand.” - Parveen Kumar, Partner - Direct Tax at Dewan P N Chopra & Co
“The new income tax bill is designed to be clear and direct in its language, ensuring simplicity and ease of understanding for both taxpayers and tax administrators. Its straightforward text aims to eliminate confusion, making it more accessible and user-friendly for all stakeholders involved.” - Abhishek Sharma, Transaction Tax & Regulatory Services, Dewan P N Chopra & Co