Income tax changes from 1st April, 2025
0 – Rs. 4 lakh = NIL
Rs. 4 – Rs. 8 lakh = 5%
Rs. 8 – Rs. 12 lakh = 10%
Rs. 12 – Rs. 16 lakh = 15%
Rs. 16 – Rs. 20 lakh = 20%
Rs. 20 – Rs. 24 lakh = 25%
Above Rs. 24 lakh = 30%
(Old tax regime remains unchanged.)
Increased Tax Rebate (Section 87A)
Rebate increased from Rs. 25,000 to Rs. 60,000.
Tax-free income limit raised to Rs. 12 lakh under the new tax regime.
TDS & TCS Enhancements
TDS: Threshold for senior citizens' interest income raised to Rs. 1 lakh (from Rs. 50,000).
TCS: Higher limits on foreign remittances and investments (Rs. 10 lakh instead of Rs. 7 lakh).
Extended Time for Filing Updated ITR (ITR-U)
Time limit extended from 12 months to 48 months to file updated returns with additional tax rates.
Tax Treatment of ULIPs & Deduction for Startups
ULIP proceeds exceeding Rs. 2.5 lakh premium will be taxed as capital gains.
Startups incorporated before April 1, 2030, can claim 100% profit deduction for 3 years.
Other Notable Changes
Omission of Sections 206AB & 206CCA to reduce compliance burden.
Higher deduction for remuneration paid to LLP partners.
Relaxation of deemed let-out property rule, allowing up to two properties to be declared as self-occupied.
IFSC tax exemptions extended until March 31, 2030.
These changes aim to simplify taxation, enhance compliance, and provide relief to taxpayers.
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