Union budget reaction quotes:
Mr. AK Tyagi, Founder, Chairman & Managing Director of Nuberg Engineering Ltd.
“I congratulate the government on a forward-looking Union Budget 2025-26 that prioritizes energy security and sustainability. The ambitious Nuclear Energy Mission (100 GW by 2047) and the 500 GW renewable energy goal by 2030 reinforce India’s green future. Increased incentives for green energy, MSME solarization, and domestic manufacturing will boost industries and job creation.
The budget’s emphasis on hydrogen as a clean fuel aligns with India’s energy strategy. Support for green hydrogen production, industrial decarbonization, and ammonia-based solutions will drive innovation and sustainability. Investment in infrastructure and emerging technologies will further accelerate the energy transition. With strong policies and financial backing, this budget sets the stage for India’s leadership in sustainable energy.”
Ms. Preeti Sharma, Partner, Tax & Regulatory Services, BDO India
Increase in the amount of rebate available under New Tax Regime for Individuals having taxable income up to INR 12 lakhs. Such taxpayer group is not required to pay any taxes and hence this will lead to tax saving of INR 80,000. If you are salaried individual with total income of INR 12.75 lakhs, due to availability of standard deduction of INR 75,000, you are not required to pay any taxes.
Change in tax slab rates under New Tax Regime which will clearly bring tax saving to all class of taxpayers as limit for minimum income subject to tax has been increased from INR 3 lakhs to INR 4 lakhs. Further, 30% tax rate will now trigger at income of above INR 24 lakhs instead of INR 15 lakhs.
There is no change in Old Tax Regime which clearly indicates Government’s agenda to reduce the number of takers of Old Regime. The fine print of New Income-Tax Bill is not yet issued but it indicates the Government intention to follow a single regime of taxation for Individuals aligned with framework of New Regime of taxation.
Senior Citizen, TCS
Mr. MANOJ PUROHIT, Partner, FS Tax, Tax and Regulatory Services, BDO India
“The much-needed ask from senior citizens to increase the withholding tax limit on interest income is accepted and now it is proposed to increase the threshold limit from the existing INR 50,000 to INR 1 lakh. This will leave a larger portion of disposable income in the hands of senior citizens, rather than them having to wait for the refund of taxes paid.”
“Rationalisation of levy of TCS on LRS by increasing the limit from the existing INR 7 lakh to INR 10 lakh would increase the base for exemption and increase compliance. Also, exempting the TCS on payments made for education purposes via specified financial institutions will ease the burden on students planning to study abroad with minimal tax compliance processes.”
“The proposal to set up a high-level committee to revisit the existing current regulations will usher in the much-needed investor comfort and confidence in carrying business in India. The regulations are expected to be light-touch-based, technology-driven, trust-based, globally-competent and people-friendly.”
Mr. Lalit Attal, Partner, Tax & Regulatory Services, BDO India
The tax proposal to conduct transfer pricing audit for a block of three years is a welcome move that has been long overdue. A wider guidance around complex data gathering, inconsistent documentation across jurisdictions, managing fluctuating market conditions, potential for double taxation, disputes over intangible asset valuation, and navigating different tax authority interpretations of the arm’s length principle would pave the way for tax certainly and enhance ease of doing business in India.
Loans
Mr. Manoj Purohit, Partner & Leader, FS Tax, Tax & Regulatory Services, BDO India
“Proposal to extend the interest cap on interest subvention scheme will enhance the base for banking sector and bring in the smaller lot of consumers. The banks will also benefit by expanding the book size of their small loans.”
Income Tax Reforms
Mr. Abhishek Sharma, Transaction Tax & Regulatory Services, 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.
• Proposing to remove TCS on remittances for education purposes if the remittance is funded through a loan taken from a specified financial institution. Omitting TCS on transactions related to the sale of goods to reduce compliance difficulties.
Tax Code & Transfer Pricing
Mr. Munjal Almoula, Head of Tax, BDO India
The new tax code will be drafted with a view of removing uncertainties. It is expected to be simpler, crisper and articulated in simple language to avoid ambiguity and interpretation issues. The intent is to avoid needless litigation and provide greater certainty to taxpayers.
“Transfer pricing compliances to be reduced significantly by allowing taxpayers having international transactions to determine the ALP for the international transactions over a block period covering 3 years. This will reduce compliance burdens for taxpayers and ease documentation maintenance.”
“The Finance Minister has proposed extending the scope and coverage of the safe harbour rules to further international transactions with a view to reduce transfer pricing litigation. This will be a win-win for the taxpayer as well as the department and will go a long way to reduce uncertainties in transfer pricing matters.”
FDI in the insurance sector
Mr. MANOJ PUROHIT, Partner, FS Tax, Tax and Regulatory Services, BDO India
“The much-awaited reform in the insurance sector has been announced by the Hon’ble FM of extending 100% FDI in the insurance sector. It is a welcome step for opening the insurance sector for foreign players and addressing the stress over solvency of insurance companies. This move will ensure penetration of insurance, thereby paving the path for insurance for all by 2047.”
Custom Duty
Ms. Deepthi Alexander, Partner, Indirect Tax, BDO India
Reduction in customs duty slab rates would lead to reduction in classification related disputes and increase ease of doing business for importers.
Removal of Social Welfare Surcharge on imported goods is expected to reduce cost of import and encourage domestic manufacturing across sectors.
The faceless procedures were supposed to be introduced in a phased manner. While a mechanism for faceless assessment, re-assessment or recomputation and faceless CIT(A) is already in place, the Union Budget 2025 proposes to notify faceless schemes for determination of arm’s length price, i.e., Transfer Pricing assessments, faceless Dispute Resolution Panel, faceless appeal/proceedings before the Income Tax Appellate Tribunal as well, so as to impart greater efficiency, transparency and accountability.
Mr. Santhosh Sivaraj, Partner, Global Employer Services, Tax & Regulatory Services
Budget announcements sound exciting – Simplification of litigation for Aam tax payers – Trust First Scrutinise Later
Based on the proposals, if an individual is earning up to INR 1 lakh a month, no tax is payable in FY 2025-26. This will boost household consumption, savings and investments.
Mr. Prashant Bhojwani, Partner, Corporate Tax, Tax & Regulatory Services
• Framework of bilateral investment treaties to be modified to encourage higher foreign investments
• Scope of fast-track mergers to be expanded to reduce timeline for consolidations
Mr. Jeenendra Bhandari, Chairman of JITO Incubation and Innovation Foundation (JIIF).
With China aggressively expanding its AI capabilities and the U.S. maintaining its dominance, India cannot afford to lag behind. Deep tech is no longer an option; it is the need of the hour. The government’s commitment—allocating ₹20,000 crore for private-sector-driven R&D and proposing a Deep Tech Fund—signals a crucial shift toward fostering homegrown innovation. With alternative investment funds already receiving commitments of over ₹91,000 crore and an additional ₹10,000 crore Fund of Funds on the way, we have a unique opportunity to build world-class startups in AI, quantum computing, and advanced manufacturing.
Mr. Sumit Bhatia, co-founder, Aksum Trademark Pvt. Ltd.
“The Government’s decision to increase investment and turnover limits for MSMEs by 2.5x and 2x, respectively, is a welcome move that will enable businesses to scale, innovate, and attract investments. Additionally, the enhanced credit guarantee cover under CGTMSE will provide easier access to formal credit, helping MSMEs grow and modernize.
At Aksum , we believe these reforms will strengthen India’s MSME sector, boost job creation, and drive economic growth. We look forward to leveraging these benefits to expand and innovate.”
Mr. Divyesh Savaliya, Chairman & MD, Onix Renewable Limited
“The Union Budget 2025 has set the stage for the self-reliance-led growth in the country’s renewable energy sector in line with the goal to achieve 500 GW of non-fossil fuel energy by 2030. With a strong emphasis on domestic value addition, the government’s focus on solar PV cells, EV batteries, motors, and controllers will significantly reduce reliance on imports and foster self-sufficiency in critical clean technologies. The introduction of the National Manufacturing Mission to support domestic production of EV batteries and solar panels is a strategic move that will not only enhance India’s manufacturing capabilities but also drive cost efficiencies, supply chain resilience, and global competitiveness.
By encouraging backward integration and technology-driven advancements, these measures will catalyze innovation, attract investments, and create a robust ecosystem for clean tech manufacturing. As India moves towards its net-zero goals, such initiatives will play a crucial role in accelerating renewable energy adoption, ensuring energy security and diversifying the renewable energy portfolio.”
Mr. Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited:
The new changes introduced in the Income Tax Bill will profoundly affect the structure of taxation in India. The Government is seriously attempting to simplify tax compliance by eliminating provisions with clear intent and efficiency, lowering them to just under half. Taxpayers are getting more choices as the limit for submission of the updated return is no longer 2 years, but 4 years. By raising the new tax limit basic exemption limit to ₹12 lakh, the government is clearly focused on supporting the middle class. The TDS and TCS provision rationalization: new limits of ₹10 lakh for LRS remittances and rent TDS of ₹6 lakh are common sense changes in tax policy.
Mr. Abbhinav R Jain, Co-founder & Chief Financial Officer, AdCounty Media:
The Union Budget 2025 marks a paradigm shift in income tax policies, making the tax structure simpler and reducing compliance burdens. The government’s focus on easingcompliance—such as extending the registration period for charitable institutions and increasing tax relief for self-occupied properties—indicates a pro-growth and taxpayer-friendly approach.A revised tax structure with a ‘Nil tax’ slab up to ₹12 lakh, considerable deductions for senior citizens and rental income, will empower the middle class by increasing disposable income and thereby fostering economic growth. With an infrastructure that is set by encouraging ease of doing business and smoothening of financial regulations, this budget paves the way for continued growth, savings, and investments, of course, leading to strong prospects for businesses and individuals.
Mr. Gaurav Singh Parmar, Associate Director, Fincorpit Consulting:
The new Income Tax Bill places a weighted focus on simplification and refinement while embodying the necessary provisions of the previous Bill which shows mature consideration of the tax reforms. The new time limit set for filing updated returns has been evolved to three extended years and this gives an appropriate buffer for the taxpayers to amend their mistakes and compliance matters. The rationalization of TDS and TCS rates with new adjustments to the thresholds is bound to make the tax collection procedures more efficient. Increases in the threshold of LRS remittances and rent TDS claim shows sensitivity to the economic realities of today. The removal of TCS for education loans under 10 lakh is an act which further emphasizes the goals of the government to promote education.
Aman Gupta, Director of RPS Group:
From the above, it is clear that there is a delineated understanding of the taxpayer’s needs. The kudos goes to the reform where the tax provisions were altered, and the effectiveness of the reforms was retained. The modification will also tremendously benefit the middle class as the new batched exemption limits of ₹ 12 lakh is a substantial increase. The rationalization of the TDS and TCS requirements, together with the increase in the thresholds for the different transactions, is an indicator of the desire to move towards a better organized tax administration. As a result, the estimate for the modification of the return lodgment period to four years demonstrates some leniency in the tax compliance obligations. There is thereby a taxpayer friendly and yet an efficient arsenal for taxation.
Mr. Anish Srikrishna, CEO, TimesPro.
“The Education Budget 2025 represents a pivotal moment in our nation’s journey towards fostering a future-ready workforce through strategic investments in education, skill development and technological research. The establishment of AI Centres of Excellence and the expansion of IITs mark a significant step toward positioning India as a global leader in technology and innovation. These initiatives, coupled with 10,000 fellowships for technological research in IITs and IISc, will not only strengthen India’s academic and research ecosystem but also equip students with cutting-edge skills required for emerging industries. Additionally, the expansion of medical education with 75,000 new seats will play a crucial role in addressing the growing demand for healthcare professionals and strengthening the country’s healthcare infrastructure.
The launch of five National Centres for Excellence in Skilling, in collaboration with global partners, will ensure India’s youth are equipped with industry-relevant expertise. The rollout of 50,000 Atal Tinkering Labs and initiatives like the Bharatiya Bhasha Pushtak scheme further exemplify a forward-looking strategy that aligns seamlessly with the vision of a ‘Viksit Bharat.’ At TimesPro, we view these strategic interventions as more than policy measures; they are the foundation of a dynamic learning ecosystem that will redefine education and skill development in India. By nurturing innovation and ensuring adaptability in the face of rapid technological advancements, we are paving the way for a knowledge-driven future and strengthening the nation’s global competitiveness.”