Knowledge Center
Salient Features of the Finance Bill 2025
The Finance Bill is a crucial legislative document presented annually alongside the Union Budget. It outlines the government’s fiscal policies and proposed amendments to taxation laws, impacting individuals and businesses alike. The Finance Bill 2025 introduces key reforms aimed at boosting economic growth, enhancing compliance, and promoting transparency. This blog provides a comprehensive overview of its salient features.
What is the Finance Bill?
The Finance Bill is a legislative proposal that encompasses amendments to tax laws, duties, and other fiscal policies. It is presented in Parliament by the Finance Minister and must be passed to give effect to the financial proposals in the Union Budget. The Bill’s provisions directly influence taxation, government revenue, and economic policies.
Salient Features of the Finance Bill 2025
1. Introduction of Simplified Tax Regime
The Bill proposes further simplification of the tax regime by reducing compliance burdens for small businesses and individual taxpayers. Revised income tax slabs and increased exemption limits aim to provide relief to middle-income groups.
2. Focus on Green Economy
In line with India’s sustainability goals, new tax incentives have been introduced for businesses investing in renewable energy, green technologies, and carbon-neutral practices.
Digital Economy Reforms The Finance Bill addresses taxation on digital transactions, including cryptocurrencies and e-commerce platforms, with clear guidelines to prevent evasion and ensure transparency.
4. Streamlined GST Framework Provisions to enhance the GST compliance mechanism include real-time invoice verification and stricter measures to curb input tax credit fraud.