Finance Minister Nirmala Sitharaman on Tuesday (March 25, 2025) announced that no import obligations used to produce batteries with electric vehicles (EV) and 28 items used to produce mobile phones to increase domestic production will not be used on 35 investment goods.
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The Minister of Finance, in response to the debate on the financial bill, which was approved by Lok Sabha, said the customs tariff in the 2025 budget was aimed at increasing domestic production and increasing export competitiveness by reducing the duties for raw materials and inputs because domestic products are cost-effective.
“This financial law 2025 concerning customs objectives is to rationalize the structure of tariffs and inversion on addressing.
The government moved 35 official changes to the financial bill, including one, that canceled six percent of the digital online advertisement tax during its passage to the lower house.
The minister called the rationalization of customs schools “a very large step forward.” He said that importers would benefit, while the export of industries, that import parts and components would become competitive.
Tariff rationalization
The announcement came just before the US delegation arrived in India to review President Donald Trump’s proposal to store mutual tariffs. However, Mrs. Sitharaman claimed that the process of customs rationalization had been going on in the last two years.
The Minister of Finance also informed the Chamber of Deputies that the New Income Tax Act, which will try to replace the 1961 Income Act, will be started for discussion during the next monsoon meeting because it has currently been examined by the Parliament Selection Committee.
Referring to concerns expressed by opposition members regarding tax officials from income who were entitled to examine digital records for evaluation purposes in the new Income Tax Act, he said it was necessary to make this provision because the 1961 Tax Act only authorized the examination of physical books or expenses for income.
Nudge campaign
She also informed the Chamber of Deputies that the income tax department had made a “nudge” campaign in which taxpayers were encouraged to voluntarily publish their foreign income and assets. SMS and e-mails were sent to approximately 19,501 selected taxpayers, and they were asked to check their tax returns for 2024-25 income tax on the basis of information available on foreign contributions and assets, she said.
Cumulatively resulted in the declaration of foreign assets worth 29,208 crore and foreign income of 1,089 GBP in the plan of FA (foreign assets) 30 161 taxpayers, added Mrs. Sithaman.
He notes that the financial bill provides “unprecedented tax relief”; the Minister of Finance stated that the collection of income tax for 2025-26 was screened at 13.6 lakh crore.
“Revised estimates at 2024-25 are £12.2 lakh crore. So, 12.2 lakh crore will be £ £ £ £ 13.6, which is done with a certain realistic calculation,” she said.
The response of the opposition members’ questions to tax relief to those people whose annual income exceeded 12 lakh for zero tax liability, said the Minister of Finance, would be provided to these taxpayers “marginal relief.”
“Even though I read the budget, I made it clear that marginal relief was awarded … For example, with an income of 12.10 Lakh, £10,000 will only be paid as income tax,” explained Mrs. Sithaman, adding, “The tax without marginal relief would be 61,500 ₹.”
She explained that there would be no tax liability for paid people up to an annual income of 12.75 GBP Lakh, which would be a standard deduction of 75,000 GBP.
Regarding the change in the abolition of a six percent equalization fee in the field of online advertising, the Minister of Finance stated that it was carried out for “uncertainty in international economic conditions.”
The minister also claimed that the Narendra Modi government ensured full parity among the pensioners before and for the seventh central paycheck. As regards the change, she said that the government had restored the position in March 2008, the way of determining pensions, which was recommended by the sixth central paying committee.
“With this amendment, the government actually renews what was accepted in March 2008 … Recommendations of the sixth payout,” the minister said.
