The Union Budget for 2025-26 is set to be announced on February 1 by Union Finance minister Nirmala Sitharaman, with three major changes expected, including income tax revisions, a reduction in excise duty, and an increase in government facilities.

Let’s take a look at the anticipated changes for the Budget 2025-26 

New income tax bracket may be introduced

The central government may introduce a new tax bracket for taxpayers, potentially offering several relaxations.

It is anticipated that a 25% tax may be introduced for incomes between ₹15 to ₹20 lakhs. 

Currently, income tax rates are:

₹3 to ₹7 lakh - 5%

₹7 to ₹10 lakh - 10%

₹10 to ₹12 lakh -15%

₹12 to ₹15 lakh - 20%

Above ₹15 lakh - 30%

Petrol and diesel prices may decrease

The government may consider reducing excise duty on fossil fuels. Currently, 21% duty is levied on petrol and 18% on diesel.

In the previous budget, the import duty on gold was reduced from 15% to 6%, resulting in a 104% increase in gold imports in 2024, amounting to $10.06 billion. The government may increase the import duty on gold this year.

Announcements for farmers and social schemes

The FM may increase allocations for government assistance schemes in this budget.

The Parliamentary Standing Committee recommended increasing the PM Kisan Samman Nidhi from ₹6,000 to ₹12,000.

More facilities may be added under the Ayushman Bharat Scheme with increased budget allocations.

The Atal Pension Yojana, which was launched in 2015, may also see revisions or enhancements, as no significant changes have been made for a long time.

Also read :

Budget 2025-26 by FM Nirmala Sitharaman: The A to Z of terminology