ITR filing 2025: In Budget 2025, Finance Minister Nirmala Sitharaman announced that taxpayers with income up to ₹ 12 lakh would not have to pay any income tax. In addition, salaried taxpayers will get additional benefit of no tax on a standard deduction of ₹ 75,000.
In particular, these changes will be effective from 1 April 2025, which means that when you will file your tax returns in July 2025 (if you file late) or in June (if you file early) then these changes Will not apply.
In July 2025, taxpayers will file tax returns for the financial year 2024-25, in which the provisions of Finance Act 2024 will be applicable.
In the budget 2024, declared on July 23 last year, Ms. Sitharaman announced a new tax slab rates and even increased the limit of standards deduction under the new tax system.
When you file your tax return in July 2025, these changes will naturally be effective. These changes are as follows:
File ITR 2025: These changes will apply
1. In Budget 2024, the standard deduction for salaried employees was increased from ₹ 50,000 to ₹ 75,000.
2. There is no income tax on income up to Rs 3 lakh. There is 5 percent tax liability on income between Rs 3-7 lakh.
The tax mentioned in 3. (2) is adjustable against the tax given under Section 87A.
5. Salary taxpayers with income above ₹ 7 lakh can avail the standard deduction of up to ₹ 75,000. In other words, no person with gross income of ₹ 7.75 lakh will not have to pay any income tax this year.
6. These slabs (no tax up to ₹ 3 lakh), discount (up to ₹ 25k) and standard deduction (₹ 75K) will be applicable when you are adopting the new tax system, which is also the default system.
7. In the old tax system – which you have to choose – the tax slabs are as follows:
0-2.5 Lakh: Zero
2.5 to 5 lakh: 5% above 2.5 lakhs
5 lakh to 10 lakh: ₹ 12.5k + 20% above 5 lakhs
Above 10 lakhs: 1,12,500 + ₹ 10 lakh above 30 percent
CA Pratibha Goyal, a Delhi-based chartered accountant and partner of PD Gupta & Company, says, “The income of up to Rs 7,00,000 has been exempted under the new tax system for FY 2024-25. In other words, the income of up to Rs 7.75 lakh for salaried taxpayers will be tax -free as a result of a standard deduction of Rs 75,000. ”
