The Union Budget 2025 was as expected. Major theme has been “Capacity Building” in Education;
- Skill development is at the core with addition of 5 National Centers of Excellence;
- Expansion of capacity (more intake 6.5 k seats ) in 5 IITs (those started after 2014) to start with and shall expand in the next 5 years; increase in intake in Medical Colleges (10k more seats in 25-26; 75K more seats in next 5 years);
- Addition of CoE in AI along with Agri Tech, Health and Sustainable cities;
- Promotion of digital platforms for learning in local language ; digital books in local language
- Focus on strengthening entrepreneurship by setting up more Atal tinkering labs
BUDGET 2024 : Expectations for HEIs – Experts Speak
Modi 3.0 Government’s 1st Budget 2024 perceived by Industry as a “Budget of Hope”
Major expectation of this Budget was on revision in Personal tax structure. Which has been revised as – Up to 12.75 lacs income a salaried class will not have to pay taxes.
Both wife and husband working at 12-15 lacs range with a family income of 25-30 lacs ends up paying negligible income tax.
We will see more purchases of semi luxury goods; discretionary expenses and automobiles (Sedans and sub 25 lacs SUVs)
Anticipations and expectations from Higher Education runs high from Budget 2024
Enhancing Budget Allocation : A crucial step for Transformative Higher education
Overall the Union budget 2025 is on its track to pursue the vision for Viksit Bharat 2047.
Very very prudent budget. Provisions made for MSMEs are very very progressive and empowering.
More emphasis on women entrepreneurs and start-ups.
Countries that have made the transition to developed status have all invested in education.
To help understand the Mechanism for Zero Tax on Income up to ₹12 Lakh, Team Campusutra breaks it up :
The government has enhanced the rebate under Section 87A of the Income Tax Act. Previously, this rebate was available for individuals with incomes up to ₹7 lakh, effectively reducing their tax liability to zero. In the 2025 budget, the rebate limit has been increased to ₹12 lakh. This means that individuals with an annual income of up to ₹12 lakh are now eligible for a rebate that brings their tax liability to zero. For salaried individuals, the standard deduction has been increased to ₹75,000, making the effective tax-free income limit ₹12.75 lakh.
Budget 2025- 2026 have a potential to create an inclusive and sustainable economy.
Example Calculation:
- Annual Income: ₹12,00,000
- Standard Deduction: ₹75,000
- Taxable Income: ₹11,25,000
Tax Calculation:
- Income up to ₹4,00,000: 0% tax = ₹0
- Income from ₹4,00,001 to ₹8,00,000: 5% tax = ₹20,000
- Income from ₹8,00,001 to ₹11,25,000: 10% tax = ₹32,500
Total Tax Before Rebate: ₹52,500
Since the taxable income is below ₹12,00,000, the individual is eligible for a rebate of ₹52,500 under Section 87A, reducing the total tax payable to zero.
These reforms are designed to increase disposable income for the middle class, thereby boosting consumption and contributing to economic growth.