General Highlights of Finance Budget 2025

The Union Finance Budget 2025, presented by Finance Minister Nirmala Sitharaman, focuses on economic stability, investment-friendly policies, and tax relief measures. This year’s budget emphasizes growth in manufacturing, financial services, and infrastructure, alongside efforts to simplify tax compliance and promote employment.

1. New Presumptive Taxation Scheme for non-residents providing services to India’s electronics manufacturing sector—profits taxed at 25% of gross receipts.

   
   

2. Tax benefits extended for startups:

   • 100% tax exemption under Section 80-IAC for startups incorporated before March 31, 2030.

     
     

3. Trusts, Charities & Business Trusts

   • Registration validity extended from 5 to 10 years for smaller trusts (income < ₹5 Cr).

   • Less stringent compliance for minor errors in trust applications.

     
     

4. Taxation of Foreign Investors & Wealth Funds

   • Capital gains tax on unlisted debt securities for FIIs increased from 10% to 12.5%.

   • Investment deadline for tax exemptions extended to March 31, 2030 for Sovereign Wealth Funds & Pension Funds.

     
     

5. Tonnage Tax Extended to Inland Waterways:

   • Inland vessels now eligible for tonnage tax benefits, boosting domestic shipping.

     
     

6. Tax benefits extended for International Financial Services Centres (IFSCs):

   • Sunset date extended to March 31, 2030 for key tax exemptions.

   • Exemption on capital gains & dividends for ship leasing units, mirroring aircraft leasing benefits.

   • Life insurance proceeds from IFSC insurers exempted for non-residents.

   • Treasury centres in IFSC now exempt from ‘deemed dividend’ tax on intra-group loans.

     
     

7. Socio-Economic Welfare & Digital Compliance

   • Enhanced compliance ease for smaller trusts & businesses.

   • Encouragement of digital tax filing & automation.