Every year, as the Union Budget is presented in Parliament, thousands of investors, taxpayers and business owners wait to understand what it means for their own finances. At Ashutosh Financial Services, this moment has become an annual tradition of a different kind. For twenty years running, the firm has broken down the Budget for its audience, not as a political event, but as a set of decisions that directly touch savings, taxes and investments. This continuity reflects a simple belief the firm holds: that people make better financial decisions when they understand the “why” behind the numbers, not just the headlines.
In keeping with this tradition, Ashutosh Financial Services hosted a webinar titled “Analysis of Union Budget 2025-26 from the Income Tax and Investment Viewpoint” on 4th February 2025. The session was conducted online for a global audience, allowing participants from India and abroad to join from wherever they were. It was led by Daxesh Kothari and CA CFP Rajit Kothari, both of whom brought a practitioner’s lens to the Budget, translating dense fiscal announcements into practical takeaways for individuals and families managing their finances across borders.
The session opened with a look at where the Indian economy stands relative to the rest of the world. India’s projected growth rate for 2025, at 6.5%, remained the highest among the world’s twenty largest economies, comfortably ahead of China’s 4.5% and the United States’ 2.2%. At the same time, the speakers pointed out that India’s own growth had moderated somewhat, with the second quarter of FY 2024-25 slowing to 5.4%, a reminder that strong relative performance doesn’t mean the domestic economy is without headwinds. Inflation, interest rates, currency movements and stock market trends were all discussed as part of this backdrop. The rupee’s gradual depreciation against the US dollar, now averaging around 3.39% annually over the past decade, was framed less as a cause for alarm and more as a structural feature that long-term investors, especially those holding assets abroad or planning for children’s overseas education, need to factor into their planning.
From this macro picture, the session moved into what really matters to most listeners: the changes to personal income tax. The most significant announcement was the increase in the rebate available under the new tax regime, which effectively means individuals earning up to Rs. 12 lakh a year now pay no income tax, up from the earlier threshold of Rs. 7 lakh. The speakers were careful to explain the fine print behind this headline number. The rebate applies only to income taxed at slab rates; income taxed at special rates, such as certain capital gains, is not covered by it. It is also available exclusively to resident individuals, not to Hindu Undivided Families, non-resident Indians, firms or companies. The revised slabs themselves were also widened, with the highest rate of 30% now applying only beyond Rs. 24 lakh of income, a meaningful shift that effectively makes the older tax regime redundant for most taxpayers going forward.
Several other changes were unpacked in similar detail. The thresholds for Tax Deducted at Source were raised across multiple categories, including interest income, rent, dividends, and professional fees, easing compliance for senior citizens and small investors alike. Rules around house property were also simplified: individuals can now treat up to two properties as self-occupied without needing to meet the earlier conditions, removing a common source of confusion at tax filing time. For those holding Unit Linked Insurance Plans, the session clarified when such policies are taxed as insurance versus as capital gains, depending on premium levels and the life cover offered, a distinction that has real consequences for how returns are eventually taxed.
The webinar also touched on structural reforms with longer-term implications, such as the proposed new Income Tax Bill aimed at simplifying the tax framework, and 100% foreign direct investment now permitted in the insurance sector. Both signal a broader push toward easier compliance and deeper capital availability in India’s financial markets.
What came through consistently across the session was that this year’s Budget leaned toward putting more money directly into taxpayers’ hands, while narrowing the compliance burden around it. Understanding these shifts, rather than reacting to them after the fact, is what allows individuals to plan with confidence. Sessions like this one are part of Ashutosh Financial Services’ ongoing effort to make sure that financial literacy keeps pace with the pace of policy change, so that informed decisions remain within everyone’s reach.
