Budget 2025 Updates You Might Have Missed - Insights by Vikas Gawri

Did you catch all the crucial updates in the 2025 Budget announcement? If not, finance influencer Vikas Gawri is here to guide you through the most impactful changes. From healthcare benefits for gig workers to tax exemptions for senior citizens, Budget 2025 brings several important financial reforms. Additionally, changes in customs duties are set to make essential goods more affordable while increasing taxes on select luxury items.

Let's dive into the major budget highlights and see how they may affect your finances.

1. Free Healthcare for Gig Workers and Freelancers

In a significant move, the government has extended healthcare coverage under the Prime Minister Ayushman Bharat Scheme. Gig workers and freelancers can now avail up to ₹50 lakh in free treatment under the scheme. This initiative provides much-needed financial security and access to healthcare for independent workers who often lack formal employee benefits. It is expected to benefit millions of gig economy professionals across the country.

2. No TDS on Senior Citizen Interest Income up to ₹1 Lakh

Budget 2025 introduces a major tax relief for senior citizens by exempting interest income up to ₹1 lakh from Tax Deducted at Source (TDS). This change ensures that retirees with moderate savings have better liquidity and easier income management without immediate tax deductions. The update reflects the government's focus on supporting senior citizens' financial well-being.

3. Higher TDS Exemption on Rental Income

The budget has revised TDS thresholds for rental income. No TDS will apply on rental income up to ₹6 lakh per year, which is a significant increase from previous limits. This change is a relief for property owners and small-scale landlords, improving cash flow and reducing tax burdens. The measure also aims to stimulate growth in the real estate sector and encourage property investments.

Budget 2025: What's Getting Cheaper and Costlier

What's Getting Cheaper

Medicines & Medical Equipment: Thirty-six life-saving cancer drugs are now fully exempt from customs duty. Additionally, six other life-saving drugs face only a 5% duty. This change is expected to reduce healthcare costs for critical treatments, benefiting patients and hospitals.

Electronics & Renewables: Import duties on components for LCDs, LEDs, solar PV cells, and high-voltage transmitters have been reduced to 5%. This supports local manufacturing and clean tech initiatives, promoting renewable energy adoption.

Critical Minerals: Cobalt powder, lithium-ion battery scraps, and other key minerals are now exempt from Basic Customs Duty (BCD). This will lower production costs for electric vehicles (EVs) and tech products, boosting industrial growth.

Marine Industry: The duties on fish pasteur and frozen fish have dropped from 30% to 5%, while fish hydro licenses have been reduced to 5%. This change lowers costs in the seafood and fisheries industry, encouraging exports and domestic production.

Leather & Textiles: Duty exemptions on wet blue leather and crust leather aim to promote the leather industry. Additionally, initiatives to improve cotton productivity, including support for extra-long staple cotton, have been introduced.

Tourism: Visa fee waivers aim to boost medical tourism by making India more accessible to international patients seeking healthcare services.

Shipbuilding: Raw materials used in ship manufacturing are now duty-free for the next 10 years. This measure is expected to support growth in the maritime and shipbuilding sectors.

Telecom: The import duty on Carrier Grade Ethernet switches has been reduced from 20% to 10%, bringing it in line with non-carrier-grade switches.

EVs & Mobiles: An additional 35 goods for EV battery manufacturing and 28 goods for mobile battery production are now tax-exempt. This change will lower production costs, making electric vehicles and smartphones more affordable.

What's Getting Costlier

Electronics: The import duty on flat panel displays has increased from 10% to 20%. This may lead to higher prices for televisions, monitors, and other electronic devices.

Knitted Fabrics: Duties on knitted fabrics have been raised to 20% or ₹115/kg, whichever is higher. This could result in increased prices for certain textile products, especially in the apparel industry.

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Budget 2025 introduces a balanced approach by providing financial relief for healthcare, senior citizens, and rental income while incentivizing industries like renewables, EVs, and tourism. However, higher duties on luxury electronics and textiles indicate a push for local manufacturing and reduced dependence on imports.

Vikas Gawri advises staying informed about these changes to better plan your finances and investments in the coming year.