The much-awaited Union Budget 2025 by Finance Minister Nirmala Sitharaman, was presented on February 1, 2025, which focused on a new landmark for India’s economic trajectory to make growth all-inclusive, which is aimed at empowering the poor, the youth, the farmer, and women. In a bid to strengthen long-term sustainable growth through taxation, infrastructure, agriculture, and digitalisation, this budget comes with a strong reform measure in these key sectors. Read on to find out the major highlights and key takeaways from Budget 2025.

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1. Direct Tax Proposals

Introduction of a New Tax Bill

A new Income Tax Bill will be introduced in this week, which aims to replace the existing Income Tax Act of 1961. This bill is designed to simplify tax compliance and reduce the complexity of current tax laws by up to 60%.

Changes in Tax Structure Under the New Regime

Under the New tax regime, the tax structure is revised as follows:

Income Tax Slabs Tax Rate Upto Rs. 4,00,000 NIL Rs. 4,00,001 – Rs. 8,00,000 5% Rs. 8,00,001 – Rs. 12,00,000 10% Rs. 12,00,001 – Rs. 16,00,000 15% Rs. 16,00,001 – Rs. 20,00,000 20% Rs. 20,00,001 – Rs. 24,00,000 25% Above Rs. 24,00,000 30%

Increase in Rebate u/s 87A

Under the new tax regime, the rebate has been significantly increased from Rs. 25,000 to Rs. 60,000. This means that individuals with an income of up to Rs. 12,00,000 will now be eligible for a complete tax rebate, resulting in zero tax liability.

Rationalisation of TDS/TCS

The Union Budget 2025 proposed the rationalisation of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) to ease compliance challenges for taxpayers especially for middle-income earners. The government has raised the threshold limits across various TDS sections, aiming to simplify the tax process. The proposed changes are as follows:

Section Present Proposed 193 – Interest on securities NIL 10,000 194A – Interest other than Interest on securities (i) 50,000/- for senior citizen; (i) 1,00,000/- for senior citizen (ii) 40,000/- in case of others when payer is bank, cooperative society and post office (ii) 50,000/- in case of others when payer is bank, cooperative society and post office (iii) 5,000/- in other cases (iii) 10,000/- in other cases 194 – Dividend, for an individual shareholder 5,000 10,000 194K – Income in respect of units of a mutual fund 5,000 10,000 194B – Winnings from lottery, crossword puzzle Etc. & 194BB – Winnings from horse race Aggregate of amounts exceeding 10,000/- during the financial year 10,000/- in respect of a single transaction 194D – Insurance commission 15,000 20,000 194G – Income by way of commission, prize etc., on lottery tickets 15,000 20,000 194H – Commission or brokerage 15,000 20,000 194-I – Rent 2,40,000 (in a financial year) 6,00,000 (in a financial year) 194J – Fee for professional or technical services 30,000 50,000 194LA – Income by way of enhanced compensation 2,50,000 5,00,000 206C(1G) – Remittance under LRS and overseas tour program package 7,00,000 10,00,000

Note:

The Tax Collected at Source (TCS) will be removed on remittances made for educational purposes when these remittances are financed through loans from specified financial institutions ( Section 80E ).

The Tax Collected at Source (TCS) on the purchase of goods will be removed, effective from April 1, 2025.

The higher TDS rate will apply in cases where taxpayers do not provide PAN.

Extension of Time-Limit for ITR-U

The deadline for taxpayers to file updated income tax returns has been extended from 2 years to 4 years from the end of the relevant assessment year. This will make compliance with tax provisions voluntary by giving more time for tax filing and rectifying tax returns with ease, consequently ensuring a clean and efficient taxing process. The additional tax has to be paid while filing the ITR-U. The amount of additional tax that has to be paid is as follows:

ITR-U filed within Additional Tax 12 months from the end of the relevant AY 25% of additional tax (tax + interest ) 24 months from the end of the relevant AY 50% of additional tax (tax + interest ) 36 months from the end of the relevant AY 60% of additional tax (tax + interest ) 48 months from the end of the relevant AY 70% of additional tax (tax + interest )

Withdrawal of Amount from NSS – Exempt

Withdrawals from National Savings Scheme (NSS) accounts will be exempt from tax starting August 29, 2024. This tax relief is especially significant for senior citizens.

Extension of Tax Benefits Under 80CCD(1B) to Contributions Made to NPS Vatsalya Accounts

The same tax benefits available for NPS contributions under Section 80CCD(1B) will now apply to contributions made to NPS Vatsalya accounts, allowing Rs. 50,000 deduction under the old regime if you have invested in the NPS vatsalya scheme.

Omission of Sections 206AB and 206CCA

In Budget 2025, Sections 206AB and 206CCA, were removed. These sections imposed higher TDS and TCS rates—either twice the prescribed rate or 5%—on non-filers with aggregate TDS/TCS of Rs. 50,000 or more. While intended to motivate taxpayers, these provisions led to significant compliance challenges, particularly for businesses and small taxpayers, as verifying return filings became cumbersome. The removal of these sections aims to reduce the compliance burden and simplify the tax process, with the amendments set to take effect from April 1, 2025.

Extension of Deadline for Eligible Start-ups

In Budget 2025, the deadline for the incorporation of eligible start-ups, which was originally set for 2025, has been extended to 2030 to avail of the tax holiday benefits.

Insertion of Section 44BBD

A new provision, Section 44BBD, is proposed to be inserted in the Income Tax Act for the Financial Year 2025-2026. This section introduces a presumptive taxation scheme specifically for non-residents who provide services or technology to Indian companies engaged in electronics manufacturing. Under this provision, 25% of the amounts paid or payable to non-residents, or received or receivable by them for providing such services or technology, will be considered as their gross receipts for tax purposes. The main objective of this provision is to incentivise the growth of the Indian electronics sector by facilitating the infusion of advanced technology and services from international providers. This move aligns with India’s focus on strengthening its electronics manufacturing ecosystem and attracting global expertise to drive innovation and growth.

Inclusions of ULIPs and in Capital Asset

Unit-Linked Insurance Plans (ULIPs) are insurance products that also serve as investment vehicles, with a portion of the premium invested in the stock market. Previously, only ULIPs with an annual premium above Rs. 2.5 lakh were considered capital assets. However, it is proposed to consider ULIPs as capital assets where the premium exceeds 10% of the policy’s sum assured. Additionally, It is proposed to amend Section 2(14) to clarify that securities held by investment funds under Section 115UB, will be treated as capital assets.

Introduction of the Arm’s Length Price Scheme for International Transactions

The government announced a scheme to determine the arm’s length price of international transactions over a block period of three years. This approach is designed to simplify transfer pricing regulations and offer an alternative to the annual examination process typically required for such transactions. Furthermore, the government has announced an expansion of safe harbour rules, which are intended to minimize litigation and enhance clarity in international taxation matters.

2. Indirect Tax Proposals

Rationalisation of Customs Tariff and Duty Inversion:

Removal of 7 more tariff rates over and above the 7 tariff rates that were removed in 2023-24 budget, leaving only 8 rates, including ‘zero’ rate.

Only one cess or surcharge per item to be levied; exempting Social Welfare Surcharge on 82 tariff lines with cess.

Healthcare Relief – Duty Exemptions on Medicines:

36 lifesaving drugs/medicines to be granted a full Basic Customs Duty (BCD) exemption, in a bid to provide relief to patients, particularly those suffering from cancer, rare diseases and other severe chronic diseases; 6 lifesaving medicines to be granted a concessional 5% customs duty. Full exemption and concessional duty on the bulk drugs for manufacturing the former.

BCD exemption for patient-assistance programmes run by pharmaceutical companies, provided the medicines are supplied free of cost to patients; 37 new medicines and 13 additional programmes to be added.

Boosting Domestic Manufacturing – Key Customs Proposals for Certain Industries:

Critical minerals: Full BCD exemption on 25 critical minerals that are not available domestically. Cobalt powder, lithium-ion battery scrap, lead, zinc, and 12 more critical minerals are fully exempt to support domestic manufacturing and job creation.

Textiles: Full exemption on two additional types of shuttle-less looms for technical textiles; Revised BCD on knitted fabrics: Now 20% or ₹115/kg, whichever is higher.

Electronics: To rectify inverted duty structure, BCD on Interactive Flat Panel Display (IFPD) increased from 10% to 20% and reduced to 5% on open cell and other components; Open cell components on LCD/LED TVs will now stand fully exempted from BCD to boost domestic manufacturing.

Lithium-Ion Battery: BCD on 35 capital goods for EV battery manufacturing to be exempted along with 28 additional capital goods for mobile phone battery manufacturing.

Shipping: BCD exemption on raw materials, components, consumables for shipbuilding for another 10 years; Same benefit to be extended to shipbreaking to boost competitiveness.

Telecommunication: BCD to be reduced from 20% to 10% on carrier grade ethernet switches to make it at par with non-carrier grade ethernet switches.

Export Promotion Initiatives – Handicrafts, Leather, Marine, and MRO

Handicrafts: Export time extended from 6 months to 1 year, with an additional 3-month extension, if needed; 9 more duty-free inputs added to the list.

Leather: Full BCD exemption on Wet Blue leather to boost domestic production and jobs; Export duty exemption of 20% on crust leather to support small tanners.

Marine products: BCD on Frozen Fish Paste (Surimi) cut from 30% to 5% to enhance exports; BCD on fish hydrolysate reduced from 15% to 5% for shrimp and fish feed production.

Railway MROs: Extended time limit for the repair of foreign-origin railway goods from 6 months to 1 year, with a 1-year further extension option (same as aircraft and ships).

Key Customs Reforms for Trade Facilitation

New time limit for provisional assessment: A new time limit of two years (extendable by one year) to be introduced to finalise provisional assessments.

Voluntary compliance initiative: Importers/exporters can soon voluntarily declare material facts post-clearance and pay duty with interest but without penalty. However, this will not apply in cases where audit or investigation proceedings have already been initiated.

Extended time for end-use compliance: Time limit for utilising imported inputs extended from six months to one year. Further, quarterly reporting will replace monthly statements, reducing administrative burden.

Amendments in Section 107 and 112 of the CGST Act, 2017

Section 107(6) is being amended to provide for 10% mandatory pre-deposit of penalty amount for appeals before Appellate Authority in cases involving only demand of penalty without any demand for tax.

Section 112(8) is amended to provide for 10% mandatory pre-deposit of penalty amount for appeals before Appellate Tribunal in cases involving only demand of penalty without any demand for tax.

Insertion of a new section 122B of the CGST Act, 2017

A new Section 122B is being inserted to provide penalties for contraventions of provisions related to the Track and Trace Mechanism provided under section 148A.

Amendments in Section 34 of the CGST Act, 2017

The Finance Minister amended the Proviso to sub-section (2) to explicitly provide for the requirement of reversal of corresponding input tax credit in respect of a credit-note. It means if the supplier issues a credit note for reducing their tax liability, the recipient must reverse the corresponding ITC, if already availed. Now businesses should enhance systems/processes to monitor credit note-related ITC reversals efficiently.

Amendments in Section 38 of the CGST Act, 2017

Section 38(1) is being amended to omit the expression “autogenerated” indicating that the ITC statement i.e. GSTR-2B may no longer be entirely system-generated. Businesses now might need to validate and reconcile invoices and ITC through Invoice Management System (IMS) rather than relying solely on system-generated data. Also, a new clause (c) to sec 38(2) is added, allowing the government to specify additional details in the ITC statement through rules.

3. Highlights of Various Sectors

Agriculture

National Mission on High Yielding Seeds: The National Mission on High-Yielding Seeds will be launched to drive research and commercial availability of over 100 climate-resilient and pest-resistant seed varieties released since July 2024.

Building Rural Prosperity and Resilience: The government will launch a comprehensive multi-sectoral programme to address under-employment in agriculture through investment, skilling, technology, and invigorating the rural economy will be launched in partnership with states. The Phase I of this programme will cover 100 developing agri-districts.

Prime Minister Dhan-Dhaanya Krishi Yojana: The government will launch the Prime Minister Dhan-Dhaanya Krishi Yojana in 100 low-productivity districts to boost agriculture, irrigation and storage. The initiative will benefit 1.7 crore farmers.

Comprehensive Programme for Vegetables & Fruits: A comprehensive programme for vegetables and fruits will be launched in partnership with states to promote efficient supplies, processing, production, and remunerative prices for farmers.

Makhana Board: A Makhana Board will be established in Bihar to enhance production, processing, value addition and marketing of Makhana. Farmer Producer Organisations will class farmers and ensure access to government benefits.

Fisheries: A new framework will enable sustainable fisheries development in India’s Exclusive Economic Zone and High Seas, focusing on the Andaman & Nicobar and Lakshadweep Islands.

Urea Plant: To boost urea supply, the government will set up a new plant with a 12.7 lakh metric ton annual capacity in Namrup, Assam. It has also reopened 3 dormant urea plants to support Atmanirbharta in urea production.

Credit Enhancement Under KCC: The loan limit under the Modified Interest Subvention Scheme for Kisan Credit Cards (KCC) will increase from Rs. 3 lakh to Rs. 5 lakh, supporting 7.7 crore farmers, fishermen, and dairy farmers.

Mission for Cotton Productivity: A new 5-year ‘Mission for Cotton Productivity’ will be introduced to facilitate productivity and sustainability of cotton farming. It will also promote extra-long staple cotton varieties.

Aatmanirbharta in Pulses: The government is set to launch a 6-year initiative, Mission for Aatmanirbharta in Pulses, specifically targeting Tur, Urad, and Masoor pulses. Central agencies (NAFED and NCCF) will procure these pulses from registered farmers during the next 4 years.

MSMEs

Revision in Classification for MSMEs: The classification limit of MSMEs is revised and increased. The new classification is as follows: Micro enterprises are those in which the investment does not exceed Rs. 2.5 crore, and the turnover does not exceed Rs. 10 crore. Small enterprises are those in which the investment does not exceed Rs. 25 crore, and the turnover does not exceed Rs. 100 crore. Medium enterprises are those in which the investment does not exceed Rs. 125 crore, and the turnover does not exceed Rs. 500 crore.

Enhancement of Credit Availability: There has been a significant enhancement in credit availability, which is as follows: Micro and Small enterprises credit guarantee cover will be enhanced to Rs. 10 crore from the present Rs. 5 crore. The benefit will accrue over the next 5 years, translating to an additional Rs. 1.5 lakh crore in credit. The credit guarantee cover for startups will be enhanced to Rs. 20 crore from the present Rs. 10 crore, with the guarantee fee being moderated to 1% for loans in 27 focus sectors providing for Atmanirbhar Bharat. Credit guarantee is increased for term loans up to Rs. 20 crore for well-run exporter MSMEs.

Credit Cards for Micro Enterprises: Credit cards with a Rs. 5 lakh limit will be introduced for micro-enterprises registered on the Udyam portal. In the first year, 10 lakh cards will be issued.

New Fund of Funds: A new Fund of Funds will be set up with expanded scope and a fresh contribution of Rs. 10,000.

New Scheme for First-Time Entrepreneurs: A new scheme will be introduced for 5 lakh women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs. This scheme will provide term loans up to Rs. 2 crore for the next 5 years. Online capacity building for managerial skills entrepreneurship will also be organised.

Scheme for Footwear and Leather Sectors: A focus product scheme will be implemented to support the production of non-leather quality footwear. It will facilitate 22 lakh jobs, with a turnover of Rs. 4 lakh crore of revenues and Rs. 1.1 lakh crore in exports.

Scheme for Toy Sector: A new scheme will be implemented to make India a global hub for toys. The scheme will focus on developing skills and clusters and create a manufacturing ecosystem with sustainable toys representing the ‘Made in India’ brand.

Support for Food Processing: A National Institute of Food Technology, Entrepreneurship, and Management will be established in Bihar to boost food processing activities in the entire Eastern region.

Manufacturing Mission: A National Manufacturing Mission will be established to cover small, medium, and large industries. This mission will support ‘Make in India’ by executing roadmaps, providing policy support, and providing a governance and monitoring framework for central ministries and states.

Clean Tech Manufacturing Mission: A Mission to support Clean Tech manufacturing will be set up to improve domestic value addition and build our ecosystem for EV batteries, solar PV cells, electrolyzers, motors and controllers, wind turbines, very high voltage transmission equipment and grid scale batteries.

Investments

Investment in People

Saksham Anganwadi and Poshan: Saksham Anganwadi & Poshan 2.0 to deliver improved nutrition to 8 crore children, 1 crore pregnant women, and 20 lakh adolescent girls.

Atal Tinkering Labs: 50,000 Atal Tinkering Labs to be set up in government schools in the next 5 years for curiosity and innovation.

Broadband Connectivity: Broadband connectivity to be provided in all government secondary schools and rural primary health centres under the BharatNet project.

Bharatiya Bhasha Pustak Scheme: Bharatiya Bhasha Pustak Scheme to offer digital books for school and higher education in Indian languages.

National Centres of Excellence: 5 National Centres of Excellence for Skilling to be launched with global partnerships for ‘Make for India, Make for the World’ manufacturing. A Rs. 500 crore AI Centre of Excellence will be set up to focus on education.

Expansion of Capacity in IITs: IIT infrastructure expansion to add 6,500 seats in 5 IITs set up after 2014, along with additional facilities at IIT Patna.

Expansion of Capacity in Medical Education: 10,000 medical seats to be added next year, with a goal of 75,000 seats in 5 years.

Daycare Cancer Centres: Daycare Cancer Centres to be established in all district hospitals, with 200 centres to be initiated in 2025-26.

Scheme for Urban Workers: A new scheme for the socio-economic upliftment of urban workers will be launched to improve their incomes, sustainable livelihoods, and quality of life.

Scheme Online Platform Workers: Online platform gig workers to be issued identity cards, e-Shram registration, and PM Jan Arogya Yojana health cover.

PM SVANidhi Scheme: PM SVANidhi scheme to be overhauled with increased loans, Rs. 30,000 UPI-linked credit cards, and capacity-building support.

Investment in Economy

Public Private Partnership in Infrastructure: Infrastructure-related ministries to develop a 3-year pipeline of projects in PPP mode.

Infrastructure-related ministries to develop a 3-year pipeline of projects in PPP mode. Support to States: States are proposed to receive 50-year interest-free loans with an outlay of Rs. 1.5 lakh crore for capital expenditure and incentives for reforms.

Second Asset Monetization Plan: Second Asset Monetization Plan (2025-30) to unlock Rs. 10 lakh crore for new projects.

Jal Jeevan Mission: Jal Jeevan Mission to be extended till 2028 with an increased total outlay.

Urban Challenge Fund: Rs. 1 lakh crore Urban Challenge Fund to implement the proposals for ‘Creative Redevelopment of Cities’, ‘Cities as Growth Hubs’ and ‘Water and Sanitation’ announced in the previous Budget.

Nuclear Energy Mission: Amendments to be taken up in the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. Nuclear Energy Mission for research and development of Small Modular Reactors (SMR) to be set up with Rs. 20,000 crore with 5 indigenously developed SMRs to be operational by 2033.

Maritime Development Fund: Maritime Development Fund to provide long-term finance for the sector with a size of Rs. 25,000 crore, with up to 49% contribution by the government and the balance from private sector and ports.

Shipbuilding Financial Assistance Policy: The Shipbuilding Financial Assistance Policy will be revamped to include Credit Notes for shipbreaking in Indian yards and changes in the Shipbuilding Clusters. Large ships above a specified size will be included in the infrastructure Harmonized Master List (HML).

UDAN Scheme: A modified UDAN Scheme will be launched to connect 120 new destinations, carrying 4 crore additional passengers in 10 years. This will also support helipads and smaller airports in aspirational, hilly, and North East region districts.

Greenfield Airports: Greenfield airports will be developed in Bihar. Along with that, there will be an expansion of Patna and a brownfield airport at Bihta.

Western Koshi Canal Project: Western Koshi Canal ERM project that will benefit 50,000 hectares of land under cultivation in Bihar.

Mining Sector Reforms: Introduction of a policy for recovery of critical minerals from tailings.

SWAMIH Fund 2: SWAMIH (Special Window for Affordable and Mid-Income Housing) Fund 2, which has a size of Rs. 15,000 crore, will fasten the completion of 1 lakh pending dwelling units, with contribution from the banks, government, and private investors.

Tourism for Employment-Led Growth: Top 50 tourist destinations to be developed in partnership with states through a challenge mode. The following measures to be taken for employment-led growth: Organising intensive skill-development programmes for youth, including in Institutes of Hospitality Management Providing MUDRA loans for homestays Improving ease of connectivity and travel to tourist destinations Providing performance-linked incentives to states for effective destination management Introducing streamlined e-visa facilities and visa-fee waivers for certain tourist groups

FDI in Insurance Sector: The FDI limit in the insurance sector is raised from 74% to 100% for companies that invest the entire premium within India.

The FDI limit in the insurance sector is raised from 74% to 100% for companies that invest the entire premium within India. Credit Enhancement Facility by NaBFID: NaBFID to launch ‘Partial Credit Enhancement Facility’ for supporting corporate bonds for infrastructure projects.

KYC Simplification: Revamped Central KYC Registry will be launched in 2025 for seamless processing of the KYC.

Grameen Credit Score: Public Sector Banks to develop a ‘Grameen Credit Score’ framework for credit needs of SHG members and people in rural areas.

Pension Sector: A forum for development and regulatory coordination of pension products to be set up.

Bilateral Investment Treaties: The existing Bilateral Investment Treaties (BIT) model of 2024, signed between two countries is now being updated to the effect of long-term foreign investment through ‘First Develop India’ approach.

Regulatory Reforms: A High-Level Committee for Regulatory Reforms would be formed for the review of regulations of non-financial sectors, certifications, licenses, and permissions.

Jan Vishwas Bill 2.0: Jan Vishwas Bill 2.0 will be introduced for the decriminalization of more than 100 legal provisions.

Investment Friendliness Index of States: Introduction of an Investment Friendliness Index of States in 2025 to further competitive cooperative federalism.

Investment in Innovation

R & D and Innovation: Rs. 20,000 crore allocated for private sector-led Research, Development and Innovation announced in the previous Budget.

Deep Tech Fund of Funds: Deep Tech Fund of Funds to be explored for catalysing the next generation startup.

PM Research Fellowship scheme: 10,000 fellowships to be provided in the next 5-years under the PM Research Fellowship scheme for technological research in IITs and IISc.

National Geospatial Mission: A National Geospatial Mission to be launched to develop foundational geospatial data and infrastructure.

Gyan Bharatam Mission: Gyan Bharatam Mission to be undertaken for survey, documentation, and conservation of over 1 crore manuscripts.

Gene Bank: Second Gene Bank with 10 lakh germplasm lines to be set up for future food and nutritional security.

Exports

Export Promotion Mission: The Export Promotion Mission will be set up to facilitate easy access to cross-border factoring support, export credit, and support for MSMEs to tackle non-tariff measures in overseas markets with sectoral and ministerial targets, driven jointly by the Ministries of MSME, commerce, and finance.

BharatTradeNet: A platform for digital public infrastructure, ‘BharatTradeNet’ (BTN), will be launched to ease documentation and financing in trade, complementing the Unified Logistics Interface Platform. This will align with international norms.

Integration with Global Supply Chains: The government will identify key sectors to integrate with global supply chains and develop domestic manufacturing capacities. Facilitation groups comprising senior officials and industry representatives will support select products and supply chains.

National Framework for GCC: A national guidance framework will be implemented to attract GCCs (Global Capability Centres) to tier-2 cities through enhancing talent and infrastructure.

Warehousing Facility: Infrastructure and warehousing for air cargo, especially high-value perishable horticulture products, will be modernised. Cargo screening and customs procedures will be streamlined to improve efficiency and user-friendliness.

How Budget 2025 Affects Different People in Society?

Salaried Middle Class

The relaxation of slab rates provides much less tax incidence on salaried middle class income earners. Apparently, salary income of Rs.12,75,000 has nil tax liability without any tax saving deductions. The tax incidence can be brought to nil using rebate. Check out the article for knowing ways to save taxes.

An additional slab is introduced of Rs.20,00,000 to Rs.24,00,000. The tax rate for that slab rate is 25%. Since an additional slab rate is introduced, income that was to be taxed at 30% will now be taxed at 25%. This has reduced the tax incidence of income around Rs.20 Lakhs to Rs.25 Lakhs.

Broadly speaking, if you have interest income from bank, no TDS needs to be deducted if the interest income does not exceed Rs.50,000. Previously, this limit was Rs.40,000.

If you have missed filing return on income for any of previous 4 assessment years, an updated return can be filed, which will avoid income tax notices and penalties. Previously, this limit was for previous 2 assessment years.

The benefits available u/s 80CCD(1B) for contribution to NPS schemes is now extended to NPS Vatsalya accounts. Now you can contribute to this scheme on behalf of minor children and claim deduction on the contribution made.

Business Income Earners

If you are running a business, this budget has introduced many relaxations that may ease the compliance burden and promote growth

If you are a running a business and you are transacting with a vendor for whom TDS needs to be deducted, you first need to check if the person has filed his income tax return properly for the preceding financial year. If the person has not filed returns, a higher rate of TDS needs to be deducted by you. This is the gist of section 206AB. Similar provision for TCS is section 206CCA. Section 206AB and 206CCA are abolished in Budget 2025. Now the businesses don’t have to check the return filing status of their vendors before deducting TDS for them.

The deadline for incorporation of start-up to claim deduction under the section 80IAC has now been extended till 2030. If you are a start-up eligible under section 80IAC, you can claim deduction under this section even if you start your business until 2030.

In Budget 2025, the classification limits for MSMEs have been relaxed. As a result, entities that previously exceeded the investment and turnover limits and were not eligible for MSME status can now benefit from the advantages available to MSMEs under the new, relaxed criteria.

Credit Guarantee cover of prescribed MSME’s has been increased, making the business more accessible to credit. If the loan is availed through credit guarantee cover, there is no need for third party guarantee or collateral.

Basic Customs Duty of various goods has now been exempted and reduced to promote domestic manufacturing and encouraging investments in priority sectors.

Senior Citizens

Broadly speaking, bank interest up-to Rs.1,00,000 per annum is not subject to TDS deduction. This limit was previously Rs.50,000.

Withdrawals from National Savings Scheme (NSS) accounts will be exempt from tax starting August 29, 2024. Senior citizens are predominantly benefitted from this amendment

Budget 2025 PDF Download

Topic Download Budget at a Glance (Full) PDF Budget Speech PDF Deficit Statistics PDF Transfer of Resources to States and Union Territories with Legislature PDF Budget Profile PDF Receipts PDF Expenditure PDF Outlay on Major Schemes PDF

Statement I – Consolidated Fund of India Download Revenue Account – Receipts PDF Revenue Account – Disbursements PDF Capital Account – Receipts PDF Capital Account – Disbursements PDF Statement IA – Disbursements ‘Charged’ on the Consolidated Fund of India PDF Statement II – Contingency Fund of India – Net PDF

Statement III – Public Account of India Download Receipts PDF Disbursements PDF Receipts & Expenditure of Union Territories without Legislature PDF Finance Bill PDF Budget Highlights (Key Features) PDF Memorandum to the Finance Bill 2025 PDF Expenditure Budget PDF Receipt Budget PDF

Don’t miss the highlights from previous years’ Budgets!

Budget 2024 Highlights

Budget 2023 Highlights

Budget 2022 Highlights

Budget 2021 Highlights

Budget 2020 Highlights

Also Read:

Income Tax in Sikkim

Section 40A – Disallowances Under Business Income

Section 40A(3) of Income Tax Act

A business plan outlines your business’s financial goals and explains how you’ll achieve them over the next three to five years. Here’s a step-by-step guide to writing a business plan that will offer a strong, detailed road map for your business.

What is a business plan? A business plan is a document that explains what your business does, how it makes money and who its customers are. Internally, writing a business plan should help you clarify your vision and organize your operations. Externally, you can share it with potential lenders and investors to show them you’re on the right track. Business plans are living documents; it’s OK for them to change over time. Startups may update their business plans often as they figure out who their customers are and what products and services fit them best. Mature companies might only revisit their business plan every few years. Regardless of your business’s age, brush up this document before you apply for a business loan. » Need help writing? Learn about the best business plan software.

1. Write an executive summary

This is your elevator pitch. It should include a mission statement, a brief description of the products or services your business offers and a broad summary of your financial growth plans.

Though the executive summary is the first thing your investors will read, it can be easier to write it last. That way, you can highlight information you’ve identified while writing other sections that go into more detail.

2. Describe your company

Next up is your company description. This should contain basic information like:

Your business’s registered name.

Address of your business location.

Names of key people in the business. Make sure to highlight unique skills or technical expertise among members of your team.

Your company description should also define your business structure — such as a sole proprietorship, partnership or corporation — and include the percent ownership that each owner has and the extent of each owner’s involvement in the company.

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3. State your business goals

The third part of a business plan is an objective statement. This section spells out what you’d like to accomplish, both in the near term and over the coming years.

If you’re looking for a business loan or outside investment, you can use this section to explain how the financing will help your business grow and how you plan to achieve those growth targets. The key is to provide a clear explanation of the opportunity your business presents to the lender.

For example, if your business is launching a second product line, you might explain how the loan will help your company launch that new product and how much you think sales will increase over the next three years as a result.

4. Describe your products and services

In this section, go into detail about the products or services you offer or plan to offer.

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

You can also discuss current or pending trademarks and patents associated with your product or service.

5. Do your market research

Lenders and investors will want to know what sets your product apart from your competition. In your market analysis section, explain who your competitors are. Discuss what they do well, and point out what you can do better. If you’re serving a different or underserved market, explain that.

6. Outline your marketing and sales plan

Here, you can address how you plan to persuade customers to buy your products or services, or how you will develop customer loyalty that will lead to repeat business.

Include details about your sales and distribution strategies, including the costs involved in selling each product.

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7. Perform a business financial analysis

If you’re a startup, you may not have much information on your business financials yet. However, if you’re an existing business, you’ll want to include income or profit-and-loss statements, a balance sheet that lists your assets and debts, and a cash flow statement that shows how cash comes into and goes out of the company.

Accounting software may be able to generate these reports for you. It may also help you calculate metrics such as:

Net profit margin: the percentage of revenue you keep as net income.

Current ratio: the measurement of your liquidity and ability to repay debts.

Accounts receivable turnover ratio: a measurement of how frequently you collect on receivables per year.

This is a great place to include charts and graphs that make it easy for those reading your plan to understand the financial health of your business.

8. Make financial projections

This is a critical part of your business plan if you’re seeking financing or investors. It outlines how your business will generate enough profit to repay the loan or how you will earn a decent return for investors.

Here, you’ll provide your business’s monthly or quarterly sales, expenses and profit estimates over at least a three-year period — with the future numbers assuming you’ve obtained a new loan.

Accuracy is key, so carefully analyze your past financial statements before giving projections. Your goals may be aggressive, but they should also be realistic.

9. Summarize how your company operates

Before the end of your business plan, summarize how your business is structured and outline each team’s responsibilities. This will help your readers understand who performs each of the functions you’ve described above — making and selling your products or services — and how much each of those functions cost.

If any of your employees have exceptional skills, you may want to include their resumes to help explain the competitive advantage they give you.

10. Add any additional information to an appendix

Finally, attach any supporting information or additional materials that you couldn’t fit in elsewhere. That might include:

Licenses and permits.

Patents.

Equipment leases.

Contracts.

Bank statements.

Details of your personal and business credit history, if you’re seeking financing.

If the appendix is long, you may want to consider adding a table of contents at the beginning of this section.

Business plan tips and resources

Here are some tips to write a detailed, convincing business plan:

Avoid over-optimism: If you’re applying for a business bank loan or professional investment, someone will be reading your business plan closely. Providing unreasonable sales estimates can hurt your chances of approval.

Proofread: Spelling, punctuation and grammatical errors can jump off the page and turn off lenders and prospective investors. If writing and editing aren’t your strong suit, you may want to hire a professional business plan writer, copy editor or proofreader.

Starting a business or growing your online store? Writing a business plan is still one of the best ways to set yourself up for success. But what does a good business plan actually look like in 2025?

This guide breaks down business plan examples and templates tailored for modern entrepreneurs. Whether you’re launching your first ecommerce store or scaling up an existing business, you’ll find a format that fits.

Want to get started right away? Our business plan template provides a step-by-step framework. However, first, let’s explore the different types of business plans so you can choose the right approach for your goals.

Understanding the core components: A business plan template overview

A business plan is typically organized into key sections that outline your goals, strategies, operations, and financials. These components help define your business when you’re starting up and show how it plans to succeed. The business plan examples in this article follow this template:

Executive summary: An introductory overview of your business.

An introductory overview of your business. Company description: A detailed description of your business and why it exists.

A detailed description of your business and why it exists. Market analysis: Insights into your industry, target market, and competitors.

Insights into your industry, target market, and competitors. Products and services: What you sell and how it meets customer needs.

What you sell and how it meets customer needs. Marketing and sales plan: How you’ll attract and convert customers.

How you’ll attract and convert customers. Logistics and operations plan: The systems, tools, and processes behind your business.

The systems, tools, and processes behind your business. Management team: The people driving your business forward.

The people driving your business forward. Financial plan: Revenue, funding needs, and financial projections to prove your business is viable.

The US Small Business Administration offers a similar framework you can cross-reference when building your own plan.

Executive summary: Your business at a glance

Your executive summary is a page that gives a high-level overview of the rest of your business plan. While this section appears first, it’s often easiest to write it last after you’ve worked through other sections.

This is an example of an executive summary from a fictional greeting card business, Paw Print Post:

In this example business plan, the executive summary comes out to four paragraphs (or about half a page).

Company description: Telling your business story

You might repurpose your company description elsewhere, like on your About page, social media profile pages, or other properties that require a boilerplate description of your small business.

Soap brand ORRIS’s About page blurb could easily be repurposed for the company description section of its business plan.

You can also go more in-depth with your company overview and include the following sections:

Business structure. This section outlines how you registered your business—as an LLC, sole proprietorship, corporation, or other business type.

This section outlines how you registered your business—as an LLC, sole proprietorship, corporation, or other business type. Nature of the business. What your business actually does and who it serves.

What your business actually does and who it serves. Industry . The primary (and sometimes secondary) industry your business operates in.

. The primary (and sometimes secondary) industry your business operates in. Background information. How your business came to be and why that’s significant.

How your business came to be and why that’s significant. Business objectives. What you plan to do with your business and any revenue goals you have.

What you plan to do with your business and any revenue goals you have. Team. Who is working with you and how they will help you reach your goals.

Like this example from Passionfruit’s website, your mission statement may also work well in your business plan’s company description.

Market analysis: Knowing your industry and customer

The market analysis consists of research about supply and demand, your target demographics, emerging industry trends, and the competitive landscape. You might run a SWOT analysis and include that in your business plan.

An example SWOT analysis table for an online tailored-shirt business.

You’ll also want to do a competitive analysis as part of the market research component of your business plan. This will tell you who you’re up against and give you ideas on how to differentiate your brand. Other types of competitive analysis include product comparisons, positioning maps, or market gap analysis to better understand your business landscape.

A broad competitive analysis might include analyzing your:

💡Tip: Consider how emerging technologies—like AI or automation—are changing customer expectations and competitor strategies.

Products and services: Defining your offerings

This section of your business plan describes your offerings. Which products and services do you sell to your customers? Describe what you offer and why it matters to your customers.

Here’s what fictional brand Paw Print Post might write in this section:

An example of the products and services section of Paw Print Post’s business plan.

Marketing and sales plan: Reaching your customers

It’s always a good idea to develop a marketing plan before you launch your business. Your marketing plan shows how you’ll get the word out about your business, and it’s an essential component of your business plan as well.

You might pull from your existing marketing strategy, or break it down by marketing channels. Whatever approach you take, describe how you’ll attract and convert potential customers

Logistics and operations plan: How your business runs

Outline the key processes and operations that keep your business running behind the scenes. Consider mentioning suppliers, production processes, the facilities you have, equipment you have or need, shipping and fulfillment systems, and inventory.

Include how automation, dropshipping, or AI-driven inventory tools could streamline operations and reduce overhead. In 2025, your operations section should show how your business can adapt to challenges like supply chain issues, shifting tariffs, or geopolitical changes. Include any continuity plans you’ll rely on to keep things running smoothly.

Management team: The people behind the plan

Your management team section showcases the people driving your business forward. It’s your chance to highlight their credibility and relevance to your venture’s success.

Start by highlighting your founders and key executives, focusing on the specific experience and skills that directly relate to your business. If you’re launching a tech startup, emphasize technical backgrounds, previous startup experience, or relevant industry expertise. For a restaurant venture, highlight culinary training, hospitality management, or successful food service operations.

Don’t forget to include key advisers or board members who bring credibility and guidance to your venture. A well-respected industry veteran on your advisory board can boost investor confidence, even if they’re not involved in day-to-day operations.

If you’re missing a crucial skill set (like marketing expertise for a consumer product), acknowledge it and explain your plan to fill that gap, whether through hiring or advisory support.

Financial plan: Projecting profitability and funding needs

The financial plan breaks down your sales, revenue, profit, and expenses. Basically, it outlines how you’ll fund and grow your business.

This example financial plan from Nature’s Candy breaks down predicted revenue, expenses, and net profit in bar graphs.

It then dives deeper into the financials to include:

You can use this free financial planning spreadsheet template to build your own financial statements.

Business plan examples for different needs

Not all business proposals are the same. Depending on your goals, industry, and stage of business, you’ll want to tailor your approach. Here are eight different types of business plans, each designed for specific situations and audiences.

Example 1: The lean startup business plan

What it’s for: Rapid development, market validation, and iterative feedback. Ideal for tech startups and innovative direct-to-consumer brands that want to launch quickly.

Instead of spending months crafting a detailed plan that might be wrong, a lean business plan focuses on getting your core concept down quickly so you can start learning from actual customers.

Key sections:

Value proposition canvas

Customer segments and personas

Key assumptions to test

Minimum viable product (MVP) definition

Key metrics and success indicators

Basic financial projections

Pivot strategies

Example:

A fictional meal-prep brand:

Problem: Busy professionals struggle to find healthy meal options.

Busy professionals struggle to find healthy meal options. Solution: 15-minute meal kits with pre-prepped ingredients.

15-minute meal kits with pre-prepped ingredients. Key assumption: People will pay $12 per meal for convenience.

People will pay $12 per meal for convenience. MVP: Five meal varieties delivered weekly to 50 customers.

Five meal varieties delivered weekly to 50 customers. Success metric: 80% customer retention after month one.

80% customer retention after month one. Test timeline: Eight weeks to validate or pivot.

Example 2: The ecommerce business plan

What it’s for: Online retailers who need to address the unique challenges of digital commerce, from customer acquisition to fulfillment logistics.

Ecommerce businesses face distinct challenges that traditional brick-and-mortar plans don’t address. This plan focuses on the tech, digital marketing, and operational complexities that matter most when you start an online store.

Key sections:

Online market analysis and competitive landscape

Digital customer acquisition strategy

Technology stack and platform selection

Inventory management and forecasting

Fulfillment and shipping strategy

Customer service and returns process

Digital marketing budget and channels

Conversion optimization plans

Example:

A fictional healthy snack brand:

Target market: Health-conscious millennials, ages 25 to 40.

Health-conscious millennials, ages 25 to 40. Platform: Shopify Plus for scalability.

Shopify Plus for scalability. Customer acquisition : 40% social media, 30% Google Ads, 20% email, 10% influencers.

: 40% social media, 30% Google Ads, 20% email, 10% influencers. Average order value: $75 target.

$75 target. Fulfillment: Third-party logistics provider for orders of more than 100 per month.

Third-party logistics provider for orders of more than 100 per month. Key metrics: 2.5% conversion rate, $25 customer acquisition cost.

Example 3: The one-page business plan

What it’s for: Quick internal alignment, initial partner discussions, or situations where you need to communicate your vision clearly and concisely.

Sometimes brevity is your best friend. A one-page business plan distills your entire strategy into a single, scannable document that anyone can understand at a glance.

Key sections (all summarized):

Executive summary: Two to three sentences, max.

Market analysis: Key stats and target audience.

Products and services: What you sell and why it matters.

Marketing plan: Top three customer acquisition channels.

Operations: Essential processes and resources.

Financials: Revenue targets and major costs.

Example:

A fictional pet brand:

Mission: Premium pet products for health-conscious pet owners.

Premium pet products for health-conscious pet owners. Market: $95 billion pet industry, targeting millennials with pets.

$95 billion pet industry, targeting millennials with pets. Products: Organic dog treats, eco-friendly toys, natural supplements.

Organic dog treats, eco-friendly toys, natural supplements. Marketing: Instagram ads, pet influencer partnerships, vet referrals.

Instagram ads, pet influencer partnerships, vet referrals. Operations: Dropship model, customer service team of two.

Dropship model, customer service team of two. Financials: $500,000 year one revenue, 35% gross margin, break-even month eight.

Example 4: The traditional/comprehensive startup plan

What it’s for: Securing outside funding from investors, banks, or grant programs that require detailed documentation of your business concept and financial projections.

The startup business plan deep dives into financials, market research, and operations to prove the viability of your business idea.

Key sections:

Executive summary

Company description

Market analysis (in-depth)

Products and services

Marketing plan

Operations

Financials (in-depth)

Example:

A fictional software-as-a-service (SaaS) platform:

Executive Summary: SaaS platform for small restaurant inventory management.

SaaS platform for small restaurant inventory management. Market analysis : $2.4 billion market, 660,000 restaurants, 40% struggle with waste.

: $2.4 billion market, 660,000 restaurants, 40% struggle with waste. Product: Cloud-based inventory tracking with AI predictions.

Cloud-based inventory tracking with AI predictions. Competition : Three major players, gap in SMB market under $5 million revenue.

: Three major players, gap in SMB market under $5 million revenue. Marketing: Inside sales, trade shows, partner referrals.

Inside sales, trade shows, partner referrals. Operations: Remote team of 12, AWS infrastructure.

Remote team of 12, AWS infrastructure. Financials: Seeking $2 million series A, five-year projection to $10 million ARR.

Example 5: The internal business plan

What it’s for: Keeping your team aligned, focused, and working toward the same objectives.

Your internal business plan serves as your team’s north star. Unlike external plans, this can be more casual in tone and evolves with your business.

Key sections:

Executive summary: Team objectives and success metrics.

Company description: Culture, values, and internal mission.

Market analysis: Customer insights and positioning.

Products and services: Development roadmaps and priorities.

Marketing plan: Campaign schedules and team responsibilities.

Operations: Workflows, processes, and team structure.

Financials: Budget allocations and performance tracking.

Example:

A fictional agency:

Team goal: Grow from 15 to 25 clients, maintain 90% retention.

Grow from 15 to 25 clients, maintain 90% retention. Culture focus: Remote-first, results-driven, continuous learning.

Remote-first, results-driven, continuous learning. Client insights: 60% struggle with content creation, want monthly reports.

60% struggle with content creation, want monthly reports. Service priorities: Launch video services, improve reporting dashboard.

Launch video services, improve reporting dashboard. Marketing: Referral program launch, LinkedIn thought leadership.

Referral program launch, LinkedIn thought leadership. Operations: Hire two strategists, implement new project management system.

Hire two strategists, implement new project management system. Budget: $50,000 hiring, $15,000 tools, $10,000 professional development.

Example 6: The strategic/growth business plan

What it’s for: Planning significant expansion, entering new markets, or preparing for major scaling opportunities over the next three to five years.

This plan builds on a traditional format with a long-term lens and higher revenue goals.

Key sections:

Executive summary: Long-term vision and growth objectives.

Company description: Organizational evolution and culture scaling.

Market analysis: Comprehensive outlook and expansion opportunities.

Products and services: Launch timelines for new offerings.

Marketing plan: Multichannel strategies and brand development.

Operations: Scalable systems and infrastructure needs.

Financials: Long-term projections with multiple scenarios.

Example:

A fictional fitness platform:

Vision: Become the leading fitness platform for busy professionals.

Become the leading fitness platform for busy professionals. Growth target: Scale from 10,000 to one million users, expand to five countries.

Scale from 10,000 to one million users, expand to five countries. Market expansion: Corporate wellness, senior fitness, teen programs.

Corporate wellness, senior fitness, teen programs. Product roadmap: AI coaching (year two), wearable integration (year three).

AI coaching (year two), wearable integration (year three). Marketing evolution: Performance marketing to brand building.

Performance marketing to brand building. Operations: Scale team from 25 to 200, open European office.

Scale team from 25 to 200, open European office. Financials: $50 million revenue by year 5, series B funding in year three.

Example 7: The feasibility study/plan

What it’s for: Validating whether your business idea has real potential before investing time and money in a full business plan.

Your feasibility business plan is a pre-business plan—many refer to it as simply a feasibility study. This plan emphasizes research and early testing to see if your concept is worth pursuing.

Key sections:

Company description: Core concept and value proposition.

Market analysis: Demand validation and target market assessment.

Products and services: Technical feasibility and development needs.

Operations: Resource requirements and potential challenges.

Financials: Basic cost analysis and revenue potential.

Example:

A fictional meal delivery service:

Concept: Healthy meals from local restaurants delivered within 30 minutes.

Healthy meals from local restaurants delivered within 30 minutes. Market test: Survey of 200 locals shows 65% interested, 40% would pay $15 per meal.

Survey of 200 locals shows 65% interested, 40% would pay $15 per meal. Product feasibility: 12 restaurants willing to partner, delivery radius viable.

12 restaurants willing to partner, delivery radius viable. Operations challenge: Need three drivers minimum, food safety regulations complex.

Need three drivers minimum, food safety regulations complex. Financial reality check: $80,000 startup costs, break-even at 200 orders per week.

$80,000 startup costs, break-even at 200 orders per week. Recommendation: Proceed with pilot program in one neighborhood.

Example 8: Non-profit business plan example

What it’s for: Mission-driven organizations seeking funding from grants and donations, sustainable growth, and measurable impact.

Nonprofits need business plans too, but this version focuses on social impact rather than profit maximization. It often includes multiple revenue sources.

Key sections:

Mission statement: Clear articulation of your cause and impact goals.

Program description: Services and communities you’ll serve.

Market analysis: The problem and existing solutions.

Fundraising strategy: Grants, donations, earned revenue streams.

Operations: Program delivery and volunteer management.

Impact measurement: How you’ll track and report success.

Financial sustainability: Long-term funding and budget management.

Example:

A fictional coding school:

Mission: Provide free coding education to underserved teens.

Provide free coding education to underserved teens. Problem: 78% of local high schools lack computer science courses.

78% of local high schools lack computer science courses. Program: After-school coding bootcamp, mentorship, job placement.

After-school coding bootcamp, mentorship, job placement. Target: 100 students annually, ages 14 to 18, 60% completion rate.

100 students annually, ages 14 to 18, 60% completion rate. Funding: $200,000 grants, $50,000 individual donations, $30,000 corporate sponsors.

$200,000 grants, $50,000 individual donations, $30,000 corporate sponsors. Impact metrics: 80% job placement rate, $15 per hour average starting wage.

80% job placement rate, $15 per hour average starting wage. Sustainability: Corporate partnerships for ongoing program funding.

How to use these examples to write your own business plan

Now that you’ve seen different types of plans in action, let’s talk about how to write a business plan using these examples to create something that works for your specific situation.

If you’re starting out, you can also explore SCORE’s free startup business plan template, which offers a beginner-friendly format recognized by lenders and small business mentors.

Identify your business plan’s purpose

Before you write a single word, get clear on why you’re creating this business plan. Your purpose will shape the format, tone, and level of detail.

Are you seeking investment? Your plan should be comprehensive, data-driven, with a clear focus on demonstrating strong returns. Investors want to see detailed market research, competitive analysis, and realistic—but ambitious—financial projections. For an ecommerce business, this means diving deep into customer acquisition costs, lifetime value calculations, and your path to profitability in a competitive online landscape.

Your plan should be comprehensive, data-driven, with a clear focus on demonstrating strong returns. Investors want to see detailed market research, competitive analysis, and realistic—but ambitious—financial projections. For an ecommerce business, this means diving deep into customer acquisition costs, lifetime value calculations, and your path to profitability in a competitive online landscape. Are you applying for a business loan? Emphasize your ability to repay. Lenders care most about cash flow projections, collateral, and your personal financial history. If you’re launching an online store, show how you’ll manage inventory financing and seasonal fluctuations that could impact your ability to make payments.

Emphasize your ability to repay. Lenders care most about cash flow projections, collateral, and your personal financial history. If you’re launching an online store, show how you’ll manage inventory financing and seasonal fluctuations that could impact your ability to make payments. Are you planning for internal use? You can be more casual and focus on actionable goals, timelines, and team alignment. Your ecommerce team might need a plan that emphasizes quarterly marketing campaigns, inventory planning, and operational milestones rather than detailed competitor analysis.

You can be more casual and focus on actionable goals, timelines, and team alignment. Your ecommerce team might need a plan that emphasizes quarterly marketing campaigns, inventory planning, and operational milestones rather than detailed competitor analysis. Are you exploring a new venture? Use a feasibility study to validate your concept before fully committing. For an ecommerce concept, you might focus on demand testing, competitor pricing, and customer research to refine your business idea’s value.

Choose the right type of business plan for your needs

With your purpose clear, selecting the right format becomes much easier. Here’s how to match your situation with the most effective approach:

Just starting out with a new idea? Go lean. Test your assumptions quickly rather than spending months on a comprehensive plan that might be completely wrong. For an ecommerce venture, this might mean launching with a small product line on Shopify, validating demand, then expanding based on what you learn.

Go lean. Test your assumptions quickly rather than spending months on a comprehensive plan that might be completely wrong. For an ecommerce venture, this might mean launching with a small product line on Shopify, validating demand, then expanding based on what you learn. Ready to scale an existing online business? A strategic growth plan helps you think bigger. Maybe you’re currently selling on one platform and want to expand to multiple channels, or you’re ready to launch international shipping.

A strategic growth plan helps you think bigger. Maybe you’re currently selling on one platform and want to expand to multiple channels, or you’re ready to launch international shipping. Need funding fast? The traditional comprehensive plan is still your best bet for serious investors. Yes, it takes longer to write, but it demonstrates thorough thinking and reduces investor risk concerns. For ecommerce businesses, this means detailed analysis of your market size, competitive advantages, and clear path to scale.

The traditional comprehensive plan is still your best bet for serious investors. Yes, it takes longer to write, but it demonstrates thorough thinking and reduces investor risk concerns. For ecommerce businesses, this means detailed analysis of your market size, competitive advantages, and clear path to scale. Working with a team? An internal business plan keeps everyone aligned without the formal language required for external audiences.

An internal business plan keeps everyone aligned without the formal language required for external audiences. Testing a concept? Start with a feasibility study. For ecommerce, this might involve researching your target market, analyzing competitor pricing, and understanding the true costs of customer acquisition before committing to inventory and platform investments.

Start with a feasibility study. For ecommerce, this might involve researching your target market, analyzing competitor pricing, and understanding the true costs of customer acquisition before committing to inventory and platform investments. Need a fast, high-level summary for stakeholders? The one-page format forces you to distill your business strategy to the essentials. This works well for board meetings, partner discussions, or when you need buy-in but don’t have time to give long presentations.

Adapt examples to your unique business

Don’t try to force your business into someone else’s framework. The examples in this guide are starting points, ready for you to fill out with your own unique business information.

Tailor your tone to your audience and industry. A B2B software company needs a different voice than a trendy fashion brand.

A B2B software company needs a different voice than a trendy fashion brand. Customize your metrics and projections. A subscription box has different key performance indicators than a marketplace or a digital product business. Subscription businesses might focus on monthly recurring revenue and churn rates, while marketplace businesses care more about gross merchandise volume and take rates.

A subscription box has different key performance indicators than a marketplace or a digital product business. Subscription businesses might focus on monthly recurring revenue and churn rates, while marketplace businesses care more about gross merchandise volume and take rates. Reflect your unique market position. Maybe you’re entering a crowded space with a new angle, or perhaps you’ve identified an underserved niche. Your plan should clearly articulate what makes you different and why customers will choose you over existing alternatives.

Maybe you’re entering a crowded space with a new angle, or perhaps you’ve identified an underserved niche. Your plan should clearly articulate what makes you different and why customers will choose you over existing alternatives. Address your specific challenges. A luxury goods ecommerce business faces different obstacles than a budget-focused marketplace. Make sure your plan acknowledges and addresses the real challenges you’ll face.

A luxury goods ecommerce business faces different obstacles than a budget-focused marketplace. Make sure your plan acknowledges and addresses the real challenges you’ll face. Include your actual resources and constraints. An honest assessment of your starting resources helps you create realistic timelines and makes your plan more credible to potential partners or investors.

Focus on clarity, research, and realistic projections

A business plan is only as good as the thinking behind it. Here’s how to make yours credible and useful:

Write clearly and concisely. Use simple language, short paragraphs, and clear headings.

Use simple language, short paragraphs, and clear headings. Ground your plan in research. Look at industry benchmarks like average conversion rates (typically 2% to 3%), customer acquisition costs in your vertical, and realistic growth projections. Use sources like industry reports, competitor analysis, and customer surveys rather than assumptions.

Look at industry benchmarks like average conversion rates (typically 2% to 3%), customer acquisition costs in your vertical, and realistic growth projections. Use sources like industry reports, competitor analysis, and customer surveys rather than assumptions. Be realistic with financial projections. Factor in realistic customer acquisition costs, seasonal fluctuations, return rates, and the time it takes to optimize conversion rates.

Factor in realistic customer acquisition costs, seasonal fluctuations, return rates, and the time it takes to optimize conversion rates. Include ecommerce-specific considerations. Your plan should address unique online retail challenges like shipping costs, payment processing fees, digital marketing spend, inventory management, and customer service for remote buyers.

Your plan should address unique online retail challenges like shipping costs, payment processing fees, digital marketing spend, inventory management, and customer service for remote buyers. Plan for multiple scenarios. What happens if customer acquisition costs are higher than expected? What if a key supplier falls through? Smart plans include contingencies and show you’ve thought through potential challenges.

What happens if customer acquisition costs are higher than expected? What if a key supplier falls through? Smart plans include contingencies and show you’ve thought through potential challenges. Update regularly. Review your business plan on a set schedule— especially your financial projections and market assumptions.

Set yourself up for success as a business owner

A strong business plan serves as a roadmap for your ecommerce business at launch and as you reach each business goal. Business plans create accountability for entrepreneurs and synergy among teams, regardless of your business model.

Kickstart your ecommerce business and set yourself up for success with an intentional business planning process—and with the sample business plans above to guide your own path.

Time-critical planning opportunity for farm and business owners

Posted: 27/02/2025

The government has today released its much-anticipated consultation on the inheritance tax (IHT) reforms announced in the Autumn Budget 2024, specifically addressing agricultural property relief (APR) and business property relief (BPR) in relation to trusts (the new rules).

The consultation presents significant opportunities for individuals to optimise their estate plans to maximise APR and BPR before 6 April 2026.

IHT is levied on the value of a person’s estate at death and on lifetime transfers into trusts, with a standard rate of 40% on amounts exceeding any available nil rate bands. APR and BPR are essential reliefs that allow farmers and business owners to shield their business assets from this IHT charge by up to 100% of their value.

The new rules will limit the value of APR and BPR that can be claimed from 6 April 2026. From that date, each individual will have a £1 million combined allowance for assets qualifying for APR and BPR at 100%. Any value exceeding the £1 million allowance will only benefit from a 50% relief.

As an anti-forestalling measure, lifetime gifts made on or after 30 October 2024, where the donor dies on or after 6 April 2026, will be subject to the new rules. Similar caps on the reliefs that can be claimed for trusts will also apply.

A critical question raised by the Budget announcement was whether the new rules would limit the availability of APR and BPR for assets placed into trusts after 30 October 2024 but before 6 April 2026 (the transitional period). Most lifetime transfers into trust incur an immediate IHT ‘entry charge’ of 20% on the value transferred over the nil rate band amount (increased to 40% if the donor dies within seven years of the transfer) if no reliefs apply.

The Budget announced that the new rules would apply to lifetime trusts from 6 April 2026, but did not state whether the restrictions would apply to the entry charge on trusts established in the transitional period. We have eagerly awaited clarification on this point in the consultation, as if APR and BPR can no longer be claimed at 100% beyond £1 million, then high-value business owners have already lost the ability to transfer their assets into trust without incurring an immediate IHT charge.

Today’s consultation brings good news. It confirms there is indeed time to ‘bank’ the reliefs at 100% before 6 April 2026, stating that the £1 million allowance will not apply to entry charges on qualifying agricultural and business property during the transitional period, provided the donor lives for seven years after the transfer.

We are preparing a more detailed update on the impact of the new rules and the planning opportunities available during the transitional period.

Return to news headlines

It has always been important to regularly review your estate planning and current Will for tax efficiency and to ensure they align with any current wishes. With the proposed tax changes, safeguarding your estate from future tax liabilities has become even more critical.

The 2024 Autumn Budget announced changes to the Inheritance Tax (IHT) relief available for assets qualifying for Business Relief (BR) and Agricultural Relief (AR). The draft legislation published by the Government on 21 July 2025 confirms this will come into effect from 6 April 2026. Anti-forestalling provisions will apply to lifetime transfers between 30 October 2024 and 5 April 2026. Find out more in our latest webinar.

The qualifying conditions themselves have not changed but the amount of relief will be capped. The first £1m of qualifying assets will be exempt from IHT and the excess will attract 50% relief (in effect producing a 20% tax rate). The £1m will be shared across assets qualifying for BR and AR on pro-rata basis.

In addition, listed shares treated as unquoted shares, e.g. AIM listed, will only qualify for 50% rather than 100% IHT relief from 6 April 2026.

These are seismic changes, and business owners should start to consider their longer-term objectives and wishes now, so they are prepared to act ahead of the new rules coming into force.

The option to pay IHT by equal annual instalments over 10 years, interest-free, will continue to be available to qualifying agricultural and business property.

The way the proposals are to apply to business and agricultural property held in trusts follow established IHT principles, and there may still be good reasons to hold and/or transfer business assets into trust – especially before April 2026. See IHT planning options for business owners.

However, the way the proposals are to apply to business and agricultural property held in trusts follow established IHT principles and there may still be good reasons to hold and/or transfer business assets into trust – especially before April 2026. If you already hold business assets in trust or are considering the sale of a business, you should seek specific advice on the ways these new rules will work.

What is Business Relief from Inheritance Tax?

BR is currently a valuable relief from IHT for business owners. Its purpose is to reduce IHT charges arising on the transfer of qualifying business interests during a person’s lifetime or on their death to allow the business to continue. In many circumstances, it can mean that a business can be passed on free of IHT.

It is vital to consider the availability of BR proactively in the context of a business owners’ succession or wider estate planning, for example, when the owner wishes to pass the business to the next generation or a family trust.