The Union Budget 2025 has introduced a significant initiative aimed at empowering women entrepreneurs, particularly those from marginalized communities. (AICPA)
What is a Budget, and Why Should You Care?
But what does it really mean for you?
A budget is essentially a fancy financial to-do list for the government. It decides how much money goes where—who gets the boost, who gets taxed more, and who gets the golden ticket to incentives.
For entrepreneurs, this isn’t just another speech full of numbers. It’s about real money,
real policies, and real impact.
Whether you’re running a small home-based business, a tech start-up, or an MSME, the budget 2025 has something for you—or at least, it should.
1. Key Benefits for Women Entrepreneurs in Budget 2025
Amendment | Details | Impact |
|---|---|---|
Higher Credit Guarantee
for Women Entrepreneurs | Term loans up to ₹2
crore for first-time
entrepreneurs,
especially women,
SCs, and STs | Easier access to
funding, removing
financial barriers. |
Customised Credit Cards
for Micro Enterprises | ₹5 lakh credit limit
under Udyam
portal, with special
focus on women
entrepreneurs. | Better working capital
management for small
businesses. |
Enhanced Credit Support
for MSMEs | Increased credit guarantee and easier loan accessibility for women-led MSMEs. | Encourages business growth and expansion. |
Expansion of Skill Development Initiatives | Establishment of 5 National Centers
of Excellence for women in manufacturing and tech sectors. | Greater participation of women in high-
growth industries. |
Tax Incentives for Start-ups | Start-ups get a 5-year extension on tax exemption until April 1, 2030 under Sec 80IAC | More women can enter and sustain in
the start-up ecosystem. |
Financial Incentives for Rural Women Entrepreneurs | Special funds under PM SVANidhi and
MUDRA for women-led small businesses. | Increased economic empowerment in rural areas |
If you’re a woman entrepreneur, Budget 2025 is throwing some solid support your way—access to easier loans, tax breaks, and government-backed credit programs.
Take,for instance, the MUDRA scheme, which has already disbursed thousands of crores to
women entrepreneurs, enabling them to scale operations and create employment.
Similar policies have historically boosted financial inclusion for women in business, and
this budget aims to build on that success without unnecessary bureaucratic delays.
2. Key Taxation Highlights from Budget 2025
2.1. Income Tax Slabs for Individuals: Old Regime Unchanged, New Regime Revised
Taxable Income Range | Tax Rate (New Regime) |
|---|---|
Up to ₹4,00,000 | Nil (Yes, free money) |
₹4,00,001 to ₹8,00,000 | 5% (A small price to pay for growth) |
₹8,00,001 to ₹12,00,000 | 10% (Still manageable) |
₹12,00,001 to ₹16,00,000 | 15% (Now it stings a little) |
₹16,00,001 to ₹20,00,000 | 20% (Ouch, but we’re still good) |
₹20,00,001 to ₹24,00,000 | 25% (Okay, that’s heavy) |
Above ₹24,00,000 | 30% (The government says thanks foryour contribution) |
Note : The maximum rate of Surcharge is capped at 25% in case of new tax regime.
Decoded: If you earn below ₹4 lakh, you don’t owe anything. The new regime is
slightly more friendly, but the old one is still there if you prefer nostalgia.
2.2 Rebate Under Section 87A
New Rebate Threshold | Tax Rate (New Regime) |
|---|---|
₹7,00,000 | ₹12,00,000 |
Previous Maximum Rebate | Tax RANew Maximum Rebateate (New Regime) |
|---|---|
₹25,000 | ₹60,000 |
Decoded:If your taxable income is up to ₹12 lakh, this is a significant jump from the previous ₹7
lakh limit.
Compared to last year, this means more middle-income individuals get tax relief, putting extra money back into their pockets for investment or business growth.
This additional financial flexibility can help entrepreneurs expand operations, hire staff, or upgrade
their businesses without extra tax burdens.
Use that money wisely—like upgrading your business or finally taking that much-needed break.
2.3. Does this mean you don’t have to file ITR if your total income is below Rs 12 lakhs?
- No, Even if your tax liability becomes zero due to the rebate under Section 87A,
you may still need to file an Income Tax Return (ITR) if your gross total income
(before deductions) exceeds the basic exemption limit. - You must file an ITR if:
- Your gross total income exceeds ₹4 lakh (new regime) or ₹2.5 lakh
(old regime). - You have foreign assets or income.
- You have high-value transactions (e.g., large bank deposits, foreign travel, high electricity bills).
- Your gross total income exceeds ₹4 lakh (new regime) or ₹2.5 lakh
2.4. Why Filing ITR is Still Beneficial?
- To claim TDS refunds deducted by employers or banks.
- To maintain a clean financial record for loans, visas, and credit approvals.
- To comply with mandatory filing requirements for high-value transactions., this
is a significant jump from the previous ₹7 lakh limit.
3. Corporate Tax Rates for Companies, LLPs, and Firms
Entity Type | Tax Rate |
|---|---|
Domestic Companies (Turnover up to
₹400 Cr) | 25% |
Domestic Companies (Turnover above
₹400 Cr) | 30% |
New Domestic Manufacturing Companies (Incorporated after Oct 1,
2019, and commencing production
before March 31, 2025) | 15% |
Firms & LLPs | 30% |
Surcharge (if applicable) | 7%-12% depending on income levels |
Decoded: If you run a company, firm, or LLP, these are the tax rates applicable.
4. Key Indirect Tax Highlights from Budget 2025
4.1 Changes in GST and Customs
Amendment | Impact |
|---|---|
GST – Input Tax Credit on Plant & Machinery | Clarifies that buildings do not qualify as plant & machinery for ITC, eliminating past confusion. |
GST – Track and Trace Mechanism | Reduces tax evasion and improves compliance. |
GST – Pre-deposit for Appeals Reduced | Eases financial burden on businesses facing penalties. |
Customs – Time Limit for Finalizing Provisional Assessment | Enhances efficiency and ensures timely
dispute resolution. |
Customs – Voluntary Revision
of Bills of Entry | Enables correction of duty payments and
refund claims |
Decoded: The GST amendments streamline compliance, particularly on input tax credit and appeals.
Meanwhile, customs changes reduce processing delays and allow for voluntary correction of duty assessments—a relief for importers and exporters.
For example, the track-and-trace mechanism will impact businesses dealing in pan masala, tobacco, and other high-risk commodities, ensuring better compliance but also increasing monitoring.
Meanwhile, the pre-deposit reduction for appeals will help small businesses challenge unfair penalties without heavy upfront costs.
5. Budget 2025: What Should You Do?
- If you are a woman entrepreneur, leverage the new credit schemes and incentives.
- If you’re earning under ₹12 lakh, you’re winning—enjoy the rebate, reinvest, and grow.
- If you’re in MSMEs/start-ups, more financial flexibility means it’s time to
scale up.
Related Post
6. Concluding Thoughts on Budget 2025
Budget 2025 gives you the tools, but execution is everything.
Women-led businesses are the backbone of India’s economic future—now is the time to seize these
opportunities, take calculated risks, and thrive.
If these policies materialize, women entrepreneurs could see a real shift in financial ease.
Budget 2025 presents promising incentives for women entrepreneurs, from increased credit support to tax exemptions and skill development. However, the key lies in execution—will these policies truly translate into opportunities on the ground?
Women entrepreneurs should actively seek out these schemes, engage with business networks, and advocate for smoother implementatio. Remember, while the budget lays the groundwork, real
change happens through action.
