Finance Bill 2025: New income tax bill to scrapping of equalisation levy - Here's what Nirmala Sitharaman said in Lok Sabha

Nirmala Sitharaman

Finance Minister Nirmala Sitharaman spoke on the finance bill in Lok Sabha on Tuesday, touching upon talking about the key bills from New Income Tax bill to scrapping of equalisation levy.

The Upper House is also expected to take up The Disaster Management (Amendment) Bill, 2024, which has already been passed by the Lok Sabha.

Here are some key takeaways from the discussion of the finance bill: 

• New income tax bill likely to be taken up for discussion in the monsoon session
• For startups govt has proposed to extend period of incorporation by 5 years incorporated before 1.4.2030
• Finance Bill proposes to remove 7 customs tariff rates for industrial goods
• Proposes to fully exempt BCD on 12 critical minerals, including cobalt, lead, zinc,
• Double burden of cess and surcharge being removed. Social welfare surcharge will be exempted from 82 tariff lines
• 6% equalisation levy for advertising proposed to be removed
• FY26 direct tax collection is realistic, taking into account the dip due to tax relief
• Income Tax Law did not give legal backing to check digital assets, so have included it.  Added checking of digital elements in the income tax act, Law should give legal backing
• Encrypted messages on mobile phones led to unearthing Rs 250 cr unaccounted money
• Evidence from WhatsApp messages of crypto assets has been detected
• Whatsapp communication helped unearth Rs 200 crore unaccounted money
• Google map history on phones was used to determine frequenting locations of cash hideouts
• Instagram accounts used to establish benami property
• Allegation that GST is not progressive is unfounded, As on March 2023, average GST rate is 12.2%.
• We are collecting cess to repay the GST loan, which should be ending by early 2026
• 28% GST rate is on less than 3% of common man consumption items
• Import of drugs for rare diseases by patients or research have been exempted from IGST
• Prasadams from religious places like temples, mosques, Churches and Gurudwaras are also exempt from GST also GoM is looking into reducing GST on the food ingredients used to make these prasadams.
• GoM looking into proposal to reduce GST on farm inputs, like drip irrigation system, fertilisers, pesticides
• 70% beneficiaries under PM Svanidhi are SC, ST, OBCs. Rs 7000 crore disbursed as loans under Stand Up India scheme to SC, STs