New Delhi, Feb 1: Finance Minister Nirmala Sitharaman on Saturday announced an increase in the FDI limit for the insurance sector from 74 per cent to 100 per cent in the Budget for 2025-26 as part of far-reaching reforms in the financial sector.

This enhanced limit will be available for those companies which invest the entire premium in India. The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified, the Finance Minister said.

Budget 2025-26 aims to initiate transformative reforms across six domains which will augment our growth potential and global competitiveness during the next five years, she while presenting the Budget in Parliament.

One of these domains is the financial sector which encompasses sectors like insurance, pensions, bilateral investment treaties (BIT) and so forth, she said.

A forum for regulatory coordination and development of pension products will be set up, the Finance Minister stated.

Besides, to implement the earlier announcement on simplifying the KYC process, the revamped Central KYC Registry will be rolled out in 2025. A streamlined system for periodic updating will also be implemented, she added.

The Finance Minister also said that requirements and procedures for speedy approval of company mergers will be rationalised. The scope for fast-track mergers will also be widened and the process will be made simpler.

The FDI reforms assume significance as India has emerged as a hot investment destination with multinational giants such as Apple and Tesla looking for alternative supply chains after the US sanctions against China.

Prime Minister Narendra Modi recently said that the Indian automobile sector had attracted more than $36 billion in FDI over the last four years and this figure would go up several times in the coming years as he exhorted vehicle manufacturers to follow the mantra of ‘Make in India and Make for the World.’

Inaugurated the Bharat Mobility Global Expo 2025 at Bharat Mandapam in the national capital, the Prime Minister said that India presented a huge opportunity and is an ideal destination for investors. The government was paving the way for global investors to bring more FDI into the automobile sector which was technology and innovation-driven, he pointed out.

Sectors such as electronics have attracted major investments with the semiconductor units also coming up in the country for the first time.

New Delhi, Feb 1: Finance Minister Nirmala Sitharaman on Saturday enhanced the total outlay for Jal Jeevan Mission to Rs 67,000 crore in her proposals for Budget 2025-26 and said that the Mission stands extended until 2028.

FM Sitharaman stated that 15 crore households representing 80 per cent of India’s rural population have benefitted from the Jal Jeevan Mission since 2019.

She added that access to potable tap water connections is provided under this Mission, and in the next three years, the target is to achieve 100 per cent coverage.

Jal Jeevan Mission’s focus will be on the quality of infrastructure and operation and maintenance of rural piped water supply schemes through “Jan Bhagidhari”.

Separate MoUs will be signed with states and UTs to ensure sustainability and citizen-centric water service delivery, she explained.

The Union Government has launched several flagship schemes aimed at fostering inclusive rural development, poverty alleviation, and improving the living conditions in rural areas.

These initiatives, implemented under the Ministry of Rural Development and other key departments, address critical areas such as employment generation, housing, infrastructure, skill development, and social welfare.

For instance, the vision of the Mahatma Gandhi National Rural Employment Guarantee Act is to enhance the livelihood security of rural households across the country by providing at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.

MGNREGA recognises the importance of strengthening the livelihood resource base of the poor by reaching the most vulnerable sections of rural areas, including Scheduled Castes, Scheduled Tribes, women-headed households, and other marginalised groups.

Adopted in the Union Budget 2017-18, Mission Antyodaya is a convergence and accountability framework aiming to bring optimum use and management of resources allocated by 26 Ministries / Department of the Government of India under various programmes for the development of rural areas.

It is envisaged as a state-led initiative with Gram Panchayats as focal points of convergence efforts.

New Delhi, Feb 1: The big-ticket announcement by Finance Minister Nirmala Sitharaman regarding the income tax slab for an income up to Rs 12 lakh has brought wide cheers to the faces of the middle-class and taxpayers.

By bringing down their tax liability to nil, FM Sitharaman unveiled the bonanza at a time when they least expected it. However, these changes are applicable only to the New Tax Regime.

Under the proposed budgetary changes in Union Budget 2025-26, those with an income of up to Rs 12 lakh will no longer have to pay any income tax, a significant shift from the previous practice where they had to pay anywhere between Rs 60,000 – Rs 80,000.

“The New tax regime is the default regime. To avail benefits of the rebate allowable under proposed provisions of the new tax regime, only a return is to be filed otherwise no other step is required to be taken,” said an official release.

Also, there exists a standard deduction of Rs 75,000 available to taxpayers in the new regime. Therefore, a salaried taxpayer will not be required to pay any tax where his income before the standard deduction is less than or equal to Rs 12,75,000.

Below are some Q&As regarding new income tax slabs:

What was the earlier income limit for nil tax?

Earlier, the limit of income for nil tax payment was Rs 7 lakh. By increasing this limit to Rs 12 lakh, around one crore assesses who were earlier required to pay tax varying from Rs 20,000 to Rs 80,000 will now pay nil tax.

Who will benefit from changes in tax slabs?

The new tax regime applies to a person, or Hindu undivided family or association of persons [other than a co-operative society], or body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2.

Accordingly, changes in tax slabs will benefit all these persons.

What benefits a taxpayer can avail?

Any individual, who earlier was required to pay a tax of Rs 80,000 (in the new regime) for an income of Rs 12 lakh, will be required to pay nil tax on such income.