No import duty on 35 capital goods used to make ev batteries

Finance minister nirmala sitharaman announced there would be no import duties on 35 capital goods used to make electric vehicle (EV) batteries and 28 items used in mobile phetteries. File | Photo Credit: Ani

Finance Minister Nirmala Sitharaman on Tuesday (March 25, 2025) Announced there would be no import duties on 35 capital goods used to make electric vehicle (Ev) Batteries and 28 Items Used in Items Used In Mobile PHONE Battery making to boost domestic manufacturing.

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Replying to the debate on the finance bill, which was passed by the Lok sabha, the finance minister said customes tarif rationalization in budget 2025 was aimed at boosting domestic drive Competitiveness by Reducing Duties on Raw Materials and Inputs and Making Domestic Products Cost-Effective.

This Finance Bill 2025 Relating to the customs aims to rationalise tariff structure and address duty inversion. These will also also support manufacturing units, domestic values ​​addition, Promotte Exports, Facte Exports Trade and also provide relieve to the common people, ”MS. Sitharaman said.

The Government Moved 35 Official Amendments to the Finance Bill, Including One to Abolish a Six Per Sent Digital Tax On Online Advertisements, DURING it passage in the lower house.

Calling the rationalization of customs a “very big step forward,” The minister said importers would be benefit when experts, industries, that import parts and components, would be able cost competitive.

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Tariff rationalization

The announsement came just ahead of a US delegation Arriving in India to Carry Forward Talks on President Donald Trump’s Proposal of Impossing Reciprocal Tariffs. However, ms. Sitharaman asserted that the process of customs tarif rationalization had been going for the past two years.

The finance minister also also informed the house that the new income tax bill, seeking to replace the income tax act of 1961, would be taken up for discussion during the next monsoon session, as it was also beeing Examined by a select committee of parliament.

Referring to the Concerns Expressed By Opposition Members Regarding Income Tax Officers Being Authorized To Examine Digital Records for Assessment Purpooses in the new income tax bill, ms. Sitharaman said it was negamentsary to make this provision as the 1961 tax law permitted only the exam of Physical Books of Accounts or Manual Records of Income-Exture.

Nudge campaign

She also informed the house that income tax department carried out a ‘nudge’ campaign in which taxpayers was encountered to voluntarily disclose their foreign income and assets. SMS and e-mails were sent to Around 19,501 Select Taxpayers, Asking Them to review their income tax returns filed for 2024-25 based on information available to income tax of forwards

Cumulatively, the nudge resulted in the decalyration of Foreign Assets Worth ₹ 29,208 Crore and Foreign Income of ₹ 1,089 Crore in Schedule FA (Foreign Assets) By 30,161 TACSPAYERS, M.S. Sitharaman Added.

Noting that the Finance Bill Provides “Unprecedented Tax Relief,” The Finance Minister Said Personal Income Tax Collection for 2025-26 was projected at ₹ 13.6 Lakh Crore.

“The revised Estimates for 2024-25 is ₹ 12.2 Lakh Crore. So, ₹ 12.2 Lakh Crore is Going to Be ₹ 13.6 Lakh Crore and this is done with a certain realistic calculation,” Sheid.

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Answering Queries by opposition members on tax relieve Provided to such taxpayers.

“Even when I read the budget speech, I made it very clear Sitharaman Explained, Adding, “Tax without Marginal Relief All Have Been ₹ 61,500”.

She Clarified that for Salaried People, There would be no tax Liability up to an annual income of ₹ 12.75 lakh, Factoring in ₹ 75,000 Standard deduction.

With Regard to an amendment Regarding the Abolition of the Six Per Sent Equalization Levy on Online Advertisements, The Finance Minister said it was done to address “Uncerty in the internal economic conditions”.

The minister also also assessed that the narendra modi government has ensured full parity between pensioners of pre and post-seventh central pay commission. With Regard to amendment, sheid the government has restored the March 2008 position of the manner of fixing pensions, which was recommended by the Sixth Central Pay Commission.

“By this amendment, the government is actually restoring that which was accepted in March 2008 … The Sixth Pay Commission Recommendation,” The Minister said.