Finance Minister Nirmala Sitharaman, in the Union Budget 2025 speech, unveiled a major push for India’s tourism sector, emphasizing the development of 50 key tourist destinations. These sites will be developed in collaboration with state governments through a challenge mode, with states required to provide land for infrastructure. To further support the sector, hotels in these locations will be included in the Harmonised Master List (HML) of infrastructure, and Mudra loans will be extended to homestays to boost local tourism and economies. Additionally, the government will focus on spiritual and religious tourism, particularly destinations associated with Lord Buddha’s life. Medical tourism and wellness initiatives will also be promoted in partnership with the private sector, alongside efforts to simplify visa norms.
On the taxation front, Sitharaman announced a major relief for taxpayers, raising the tax exemption limit to ?12 lakh under the new tax regime. Salaried individuals can benefit from a higher exemption limit of ?12.75 lakh, factoring in a ?75,000 standard deduction. She emphasized that these changes aim to simplify the tax system while reducing the financial burden on the middle class. However, taxpayers must utilize specific exemptions under the Income Tax Act to maximize their benefits, including deductions such as ?1.5 lakh under Section 80CCC and ?1.5 lakh for home loan interest payments.
The revised tax regime ensures that individuals earning up to ?12 lakh in regular income (excluding capital gains) will have no tax liability, thanks to slab rate reductions and applicable rebates. This initiative aligns with the government’s broader efforts to provide economic relief and stimulate growth. By promoting tourism and easing tax burdens, the Budget 2025 aims to enhance both infrastructure development and financial well-being for Indian citizens.
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