Sitharaman Unveils Tax Reforms for 2025 Budget

Finance Minister Nirmala Sitharaman announced new tax reforms and TDS rationalisation in the 2025-26 budget, aiming to ease the compliance burden for the middle class. A new Income Tax bill will be introduced, promising simplified tax governance. Exemptions on EV and mobile battery production goods were also highlighted.

On Saturday, Finance Minister Nirmala Sitharaman unveiled a series of ambitious tax reforms aimed at easing the compliance burden as part of the 2025-26 budget.

Addressing the needs of the middle class, the minister emphasized the rationalisation of the Tax Deduction at Source (TDS) regime and announced that an Income Tax bill with more direct wording will soon be introduced in Parliament.

In addition to tax reforms, Sitharaman revealed plans to increase the TCS limit on remittances and expand exemptions for goods related to EV and mobile battery production, indicating a push for technological advancements.