There are only a few hours left for the new financial year to start. From 1 April 2025, many important rules related to income tax are going to change, which will directly affect the income and tax liability of the salaried class. All these changes were declared in the general budget 2025 presented by Finance Minister Nirmala Sitharaman.
Now there is no tax on income up to Rs 12 lakh
Under the new tax system, the annual income of up to Rs 12 lakh will now be considered tax free. Earlier this limit was 7 lakh rupees. Apart from this, if the standard deduction of 75 thousand rupees is added, then the tax exemption limit reaches Rs 12.75 lakh. However, this exemption will only apply to income tax, it will have no effect on capital gains (capital gains), it will have to be paid separately.
New tax slab system
Tax slabs under the new tax system will be as follows:
-
Income up to Rs 4 lakh – no tax
-
4 to 8 lakh rupees – 5 percent
-
8 to 12 lakh rupees – 10 percent
-
12 to 16 lakh rupees – 15 percent
-
16 to 20 lakh rupees – 20 percent
-
20 to 24 lakh rupees – 25 percent
-
More than 24 lakh rupees – 30 percent
There has been no change in the old tax system.
87A discount increased
The tax exemption limit received under section 87A has been increased from Rs 25 thousand to 60 thousand rupees. Those who adopt the new tax system will also benefit from this.
TDS limit increased on bank interest
The TDS limit on the interest received on bank deposits has been increased from Rs 40 thousand to Rs 50 thousand. This means that now TDS will not be deducted at interest up to Rs 50 thousand received from bank deposits.
The facilities provided by the employer will not be taxable
Some benefits and allowances given by the employer from 1 April will not be considered taxable. If the employer treats the employee or any member of his family abroad, that expenditure will not be counted in taxable profit.
The deadline for filing updated ITR increased
Now taxpayers will be able to take four years instead of two to update their income tax returns (ITR-U). With this, taxpayers will be able to fix the mistakes made in their tax filing for a long time.
Relief in tax on contribution to NPS Vatsalya account
A new tax savings option has also been introduced for parents. If they contribute to their child’s NPS Vatsalya account, they can claim an additional cut of up to Rs 50,000 under the old tax system.
Upasana Fukan, daughter of former Assam Home Minister Bhrigu Kumar Fukan, dies
The post will be implemented from April 1, new income tax rules, know what will be the first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
