#old-tax-regime-slabs

[imdnews1]

Income Tax Budget 2025 : 12 लाख करमुक्त उत्पन्न आणि त्यापेक्षा जास्त उत्पन्न असल्यास कर कसा मोजला जातो?

[dailyfinancial]

Budget 2025 Shocker: The Hidden Conditions Behind the ₹12 Lakh Tax-Free Limit

Explore how Budget 2025 impacts taxpayers with the conditional ₹12 lahks tax-free limit under the new regime. Learn about revised tax slabs, exemptions, and strategies to optimize your tax liability. Stay informed and make smarter financial decisions with our detailed analysis of the latest tax reforms. The Union Budget 2025 has introduced significant changes to India’s tax structure,��

[targetstudy]

Budget 2024 Highlights, New Tax Regime Slabs, Income Tax & More

This is the Interim budget 2024 which is presented by Finance Minister Nirmala Sitharaman. Nirmala Sitharaman presented her 7th budget in parliament.

In the budget 2024, which came just after the election results, the government has also paid the price for the ‘support’ of the allies. Special packages were given to the Bihar government and the Andhra Pradesh government.

At the same time, new employment opportunities have been opened to address the discontent among the youth who expressed their dissatisfaction in the Lok Sabha elections.

However, by increasing the capital gains tax on stock market investors, the burden on the middle class, already suffering from inflation, has been increased further.

In the new tax system, a slight relief has been provided by increasing the standard deduction from ₹50,000 to ₹75,000. Additionally, changes have been made to the income tax slab.

READ MORE: Budget 2024 Highlights, New Tax Regime Slabs, Income Tax & More

[taxguidenilesh]

Salary TDS: बदल गया है सैलरी पर टीडीएस कटौती का तरीका - How to calculate TDS on salary in hindi - Tax Guide

Salary TDS: Employee की सैलरी पर टीडीएस कटौती करने का उत्तरदायित्व employer पर है. Employee की salary करमुक्त सीमा से अधिक है तो वेतन से TDS की कटौती करनी होती है, इसलिए कर्मचारी की पूर्ण वित्त वर्ष के लिए सैलरी से अनुमाणित आय की गणना करनी होती है. FY 2023-2024 से सैलरी पर टीडीएस कटौती का तरीका बदल चूका है, जो सभी वेतनभोगी करदाताओ को पता होना जरुरी है. इस लेख में हम बात करेगे की How to calculate TDS on salary? और क्या है नया तरीका सैलरी से अनुमाणित आय की गणना करने का और उसपर टीडीएस deduction का?

[moneymovespress]

Budget 2025- Income tax: 60 thousand benefits on income up to 12 lakhs; In the benefits of new tax regime, old

Hindi news Business Budget 2025 Income Tax Slabs update; Old vs new tax regime | Salaried Employees New Delhi2 month ago Copy link The budget has given great relief regarding income tax. Under the New Tax Period, no tax will have to be paid on earnings up to Rs 12 lakh. This discount will be Rs 12.75 lakhs with standard deductions of 75 thousand for employed people. The slab of the New Tax…

[incometaxbill2025]

Income Tax Act 2025: Key Highlights, Applicability & PDF

Income Tax Act 2025: Key Highlights, Applicability & PDF

The much-anticipated Income Tax Act 2025 was presented in Parliament on February 13, 2025. A dedicated committee is reviewing the bill and is expected to submit its findings by the Monsoon Session. This article provides an in-depth analysis of the new tax law, its effective date, significant changes, and how it impacts taxpayers and professionals.

Introduction to the Income Tax Act 2025

The draft of the Income Tax Act 2025 is now publicly available, allowing professionals and taxpayers to understand its new provisions. While earlier speculations suggested renaming it as the Direct Tax Code, the government has officially retained the name as Income Tax Act 2025.

For complete details, you can download the Income Tax Act 2025 PDF, which includes all provisions and updates in the tax law.

Implementation Date and Applicability

A common question among taxpayers is: When does the Income Tax Act 2025 take effect? The new law will be applicable from April 1, 2026, meaning the first financial year under this act will be FY 2026-27.

Guidance for CA, CS & CMA Students

Students preparing for taxation exams should note the transition timeline:

Exams conducted before March 31, 2026, will follow the Income Tax Act, 1961.

Exams held after April 1, 2027, will be based on the Income Tax Act 2025.

Objectives of the Income Tax Act 2025

The government aims to modernize India's tax system with the Income Tax Act 2025 through:

Simplification of tax laws by reducing complexities and using clear language.

Modernizing tax regulations to align with global best practices.

Enhancing efficiency and transparency in tax calculations for individuals and businesses.

To meet these goals, several structural changes have been introduced. Let's explore the most significant changes in detail.

Key Highlights of the Income Tax Act 2025

1. Reduction in Sections for Simplification

The old tax law had 298 sections, but with various sub-sections, the count exceeded 800 provisions. The Income Tax Act 2025 has streamlined it to 536 sections, eliminating redundancies.

2. Chapter Restructuring

The previous law had 47 chapters, while the new act consolidates them into 23 concise chapters, improving clarity and ease of reference.

3. Reduction in Word & Page Count

Old law: 5.12 lakh words

Income Tax Act 2025: 2.6 lakh words (almost half!)

The new law spans 622 pages, making it 200 pages shorter than before.

4. Simpler Language & Structure

The government has introduced simplified wording, tables, and formulas to make tax calculations easier to understand and apply.

5. Measures to Reduce Litigation

By incorporating past judicial rulings, the Income Tax Act 2025 aims to minimize disputes and promote a more predictable tax environment.

6. New 'Tax Year' Concept

The terms 'Previous Year' and 'Assessment Year' have been replaced by a single term, 'Tax Year', running from April 1 to March 31. The first tax year under this system will be 2026-27.

7. Continuation of Old & New Tax Regimes

Contrary to speculation, the government has decided to retain both tax regimes, allowing taxpayers to choose the one that benefits them the most.

8. Inclusion of Virtual Digital Assets (VDA)

Cryptocurrencies and NFTs are now recognized as taxable assets. The new framework ensures undisclosed digital income is also taxed.

For full provisions and regulations, get the Income Tax Act 2025 PDF now.

9. Unchanged Tax Slabs

The tax slabs remain the same as announced in Union Budget 2025. The effective tax on an income of INR 12 lakh is nil, thanks to applicable rebates.

10. Retention of Five Income Heads

The fundamental classification of taxable income remains unchanged:

Salary

House Property

Business/Profession

Capital Gains

Other Sources

11. New Section Numbering for Clarity

To enhance organization, section numbers have been updated:

Salary Income: Old 15-17, now 15-19

House Property: Old 20-27, now 20-25

Business Income: Old 28-44, now 26-66

Capital Gains: Old 45-55, now 67-91

Other Sources: Old 56-59, now 92-95

Conclusion

The Income Tax Act 2025 marks a significant step towards a modern, efficient, and transparent tax system. It simplifies compliance, reduces litigation, and includes emerging digital assets within the tax framework. Taxpayers, professionals, and students should familiarize themselves with these changes to ensure a smooth transition.

[shashwatsm]

Income Tax New Bill 2025: Major Tax Reforms & Compliance Guide

Income Tax New Bill 2025: Major Tax Reforms & Compliance Guide

India’s tax system is undergoing a major transformation with the introduction of the Income tax new bill 2025. The government presented the bill in Parliament on February 13, 2025, with the aim of modernizing outdated tax laws. The income tax act 2025 is designed to streamline taxation, improve compliance, and align India’s tax structure with global standards. A review committee is currently assessing the provisions, with its final report expected before the Monsoon Session. Understanding these changes is crucial for taxpayers, businesses, and financial professionals. This article outlines key amendments, the implementation timeline, and important compliance guidelines.

Implementation Timeline of Income Tax New Bill 2025

The income tax act 2025 will take effect from April 1, 2026, marking the beginning of the 2026–27 financial year. Since this legislation brings significant modifications, taxpayers should start preparing early to ensure a smooth transition and avoid last-minute compliance issues.

Who Needs to Prepare for These Changes?

Taxpayers Individuals and businesses must adapt their tax strategies in accordance with the income tax new bill 2025 to optimize liabilities and remain compliant.

Financial Experts Chartered Accountants (CA), Company Secretaries (CS), and Cost and Management Accountants (CMA) should analyze the income tax act 2025 to provide accurate financial planning strategies.

Students and Exam Candidates

Exams before March 31, 2026, will be based on the current tax laws.

Exams from April 1, 2027, onward will include the income tax new bill 2025 provisions.

Why Was the Income Tax New Bill 2025 Introduced?

The government introduced the income tax act 2025 to achieve several objectives:

Global Standardization: Aligning Indian tax laws with international best practices.

Simplified Compliance: Reducing complexity for better taxpayer understanding.

Enhanced Transparency: Establishing a well-structured tax framework for better clarity.

Efficient Dispute Resolution: Reducing tax disputes through clear legal definitions.

Encouraging Digital Transactions: Strengthening taxation of digital financial activities.

Key Highlights of the Income Tax New Bill 2025

The income tax new bill 2025 introduces several structural and procedural modifications. Here’s a detailed breakdown of the major reforms:

1. Simplified Tax Structure

The previous tax law had 298 sections and over 800 provisions.

The new bill consolidates them into 536 sections, removing outdated provisions.

2. Improved Chapter Organization

Earlier, tax provisions were spread across 47 chapters, making navigation difficult.

The new bill restructures them into 23 chapters for better accessibility.

3. Concise and Clear Language

The word count has been reduced from 5.12 lakh words to 2.6 lakh words.

The page count has dropped from 822 pages to 622 pages, making it easier to comprehend.

4. Introduction of ‘Tax Year’ Concept

The outdated terms ‘Previous Year’ and ‘Assessment Year’ have been replaced with ‘Tax Year’ (April 1 – March 31), simplifying tax filings.

5. Retention of Dual Tax Regimes

Taxpayers can continue to choose between the old and new tax regimes, providing greater flexibility in tax planning.

6. Taxation of Virtual Digital Assets (VDA)

Cryptocurrencies, NFTs, and other Virtual Digital Assets (VDA) will now be explicitly taxable.

A standardized tax rate will be applied to ensure regulatory clarity.

7. Stability in Tax Slabs

The income tax new bill 2025 retains the existing tax slabs, ensuring stability for taxpayers.

For example, individuals earning INR 12 lakh will continue to have zero tax liability under rebate provisions.

8. Retention of Five Key Income Categories

The major heads of income remain unchanged:

Salary

House Property

Business/Profession

Capital Gains

Other Sources

9. Systematic Section Renumbering

To improve readability, section numbers have been reorganized:

Salary Income: Old 15–17 → New 15–19

House Property: Old 20–27 → New 20–25

Business/Profession: Old 28–44 → New 26–66

Capital Gains: Old 45–55 → New 67–91

Other Sources: Old 56–59 → New 92–95

10. Stricter Penalties for Non-Compliance

Heavier penalties for tax evasion and non-compliance.

Filing incorrect tax returns or failing to report income will attract severe fines and legal consequences.

11. Enhanced Digital Taxation and E-Filing

More taxpayers will be required to file returns electronically.

The government will implement automated tax calculations to reduce errors and enhance efficiency.

How Will the Income Tax New Bill 2025 Affect You?

The income tax new bill 2025 simplifies compliance while ensuring fairness. Whether you are a salaried individual, a business owner, or a financial expert, staying informed about the new tax provisions is crucial. Early preparation and understanding of the income tax act 2025 will ensure a smooth transition, helping taxpayers avoid penalties and optimize their financial strategies.

Conclusion

The income tax new bill 2025 marks a significant transformation in India’s taxation system. By modernizing tax laws, incorporating digital assets, and improving legal clarity, the income tax act 2025 aims to establish a transparent and efficient framework. Taxpayers and professionals should stay updated and review the new regulations regularly. Early adaptation to the income tax new bill 2025 will be key to ensuring seamless tax compliance in the coming years.

[jjtax]

Is ₹12 LPA Really Tax-Free? Unpacking the Truth

Confused about the claim that ₹12 lakh is tax-free? Let's break it down

The Buzz: Finance Minister Nirmala Sitharaman announced no income tax for incomes up to ₹12 lakh under the new tax regime. But what does this mean for Joe Taxpayer?

The Reality: ₹12 lakh isn't a flat-out tax-free amount. Instead, it acts as an exemption limit, meaning you won’t pay tax on income up to ₹12 lakh. However, once your income exceeds this limit, the tax slabs kick in.

👉 Salaried individuals also benefit from a standard deduction of ₹75,000, effectively pushing the tax-free limit to ₹12.75 lakh.

New Tax Slabs Explained:

Example: For an income of ₹14 lakh:

First ₹4 lakh: 0% tax (₹0)

Next ₹4 lakh: 5% tax (₹20,000)

Next ₹4 lakh: 10% tax (₹40,000)

Remaining ₹2 lakh: 15% tax (₹30,000)

Total Tax: ₹90,000

With the ₹75,000 standard deduction, the taxable income for salaried individuals would be ₹13.25 lakh before applying the slabs.

New vs. Old Tax Regime:

🆕 New Regime: Lower tax rates, fewer deductions. Ideal for those with fewer investments or who want a simple tax process.

🏛️ Old Regime: Higher rates but more deductions and exemptions. Great for those who maximize Section 80C benefits or have home loan interest payments.

The Bottom Line: ₹12 lakh as a "tax-free" claim is more of an exemption limit. If your income exceeds it, tax slabs apply. Deciding between the new and old regimes depends on your specific financial scenario.

💡 Need Help Calculating Your Taxes? Download the JJ TAX APP for tax calculators and get expert guidance through JIA, our chat-based assistant! www.jjfintax.com.

[nishantsah]

Income Tax Act 2025: Key Changes & Implementation Timeline

The Income Tax Act 2025 marks a significant transformation in India's tax system. Designed for simplicity, transparency, and efficiency, it replaces outdated provisions with modern tax laws. By aligning with global standards, the new tax framework ensures streamlined compliance and reduced legal complexities. Staying informed about these changes is crucial for individuals and businesses planning their finances.

Overview of the Income Tax Act 2025

The Income Tax Act 2025 replaces the existing tax laws to simplify compliance and minimize disputes. Previously referred to as the Direct Tax Code, this reform ensures clarity in taxation. Taxpayers can download the Income Tax Act 2025 PDF for a comprehensive understanding of all provisions and modifications.

Implementation Timeline of the Income Tax Act 2025

Understanding the timeline is essential for a smooth transition. The new tax structure becomes effective on April 1, 2026, making the financial year 2026-27 the first taxable period under the revised framework. Taxpayers must prepare in advance to ensure compliance.

Exam Guidelines for CA, CS & CMA Students

Exams before March 31, 2026, will follow the Income Tax Act 1961.

Exams after April 1, 2027, will be based on the Income Tax Act 2025.

Key Objectives of the Income Tax Act 2025

The Income Tax Act 2025 focuses on several core objectives, including:

Aligning Indian tax laws with global standards.

Simplifying compliance by reducing legal complexities.

Enhancing transparency in tax calculations.

With these objectives, the Income Tax Act 2025 ensures a more structured and dispute-free tax framework.

Major Changes in the Income Tax Act 2025

1. Reduction in Sections

The new act reduces the number of sections from 298 to 536, eliminating redundant provisions for easier compliance.

2. Restructured Chapters

Earlier, tax laws were divided into 47 chapters. The Income Tax Act 2025 consolidates them into 23 chapters, providing better clarity.

3. Simplified Language & Format

A structured format with clear tables and formulas reduces ambiguities, making tax laws easier to understand.

4. Reduced Word & Page Count

Old Act: 5.12 lakh words, 822 pages

New Act: 2.6 lakh words, 622 pages

5. Measures to Reduce Litigation

By incorporating past judicial rulings, the Income Tax Act 2025 aims to minimize legal disputes and ensure smoother compliance.

6. Introduction of a Single ‘Tax Year’

Terms like ‘Previous Year’ and ‘Assessment Year’ are replaced with a single Tax Year (April 1 – March 31), making tax planning simpler.

7. Retention of Old & New Tax Regimes

Taxpayers can still choose between the old and new tax regimes, offering flexibility in financial planning.

8. Virtual Digital Assets (VDA) Taxation

The new act formally recognizes cryptocurrencies, NFTs, and other digital assets as taxable, ensuring compliance in the digital economy.

9. No Changes in Tax Slabs

The existing tax slabs remain unchanged, and an effective NIL tax applies to incomes up to INR 12 lakh due to rebates.

10. Retention of Five Income Heads

The five traditional income heads remain unchanged:

Salary

House Property

Business/Profession

Capital Gains

Other Sources

11. New Section Numbering System

The Income Tax Act 2025 introduces a revised numbering system:

Salary Income: Sections 15-19 (previously 15-17)

House Property: Sections 20-25 (previously 20-27)

Business/Profession: Sections 26-66 (previously 28-44)

Capital Gains: Sections 67-91 (previously 45-55)

Other Sources: Sections 92-95 (previously 56-59)

Conclusion

The Income Tax Act 2025 is a landmark reform aimed at modernizing India's tax system. By simplifying compliance, reducing litigation, and ensuring transparency, it aligns taxation with global standards. Staying informed about these changes is essential for professionals, taxpayers, and businesses.

Download the Income Tax Act 2025 PDF to explore all provisions and stay ahead in tax planning. Preparing in advance will ensure a seamless transition and compliance under the new framework.

[nishantsth]

Income Tax Act 2025 PDF & New Income Tax Bill 2025 Highlights

The Income Tax Act 2025 PDF introduces significant reforms to India's taxation framework. Introduced in Parliament on February 13, 2025, this act aims to enhance transparency, simplify compliance, and minimize tax disputes. As the act comes into effect on April 1, 2026, taxpayers must understand its key provisions. This article highlights essential updates, the implementation timeline, and where to find the Income Tax Act 2025 PDF for reference.

Implementation Timeline of Income Tax Act 2025 PDF

The Income Tax Act 2025 PDF will be applicable from April 1, 2026, covering the financial year 2026–27. Taxpayers, businesses, and financial professionals should prepare early to comply with the new taxation system. Proper tax planning will help in smooth adaptation and ensure compliance with updated laws.

Transition Period for CA, CS & CMA Students

Until March 31, 2026: Exams will be based on the Income Tax Act 1961.

From April 1, 2027: Exams will follow the Income Tax Act 2025 PDF guidelines.

Objectives of the Income Tax Act 2025 PDF

The Income Tax Act 2025 PDF is designed to modernize taxation by focusing on:

Modernization: Aligning tax regulations with international standards.

Simplification: Making tax laws clearer and user-friendly.

Efficiency: Minimizing disputes and ensuring smooth compliance.

New Income Tax Bill 2025 Highlights

1. Simplified Tax Law Structure

The New Income Tax Bill 2025 Highlights include an increase in the number of sections from 298 to 536, ensuring better clarity while eliminating outdated provisions.

2. Improved Chapter Organization

Chapters have been streamlined from 47 to 23, making the Income Tax Act 2025 PDF more structured and accessible.

3. Reduced Complexity & Length

Previous Law: 5.12 lakh words

Income Tax Act 2025 PDF: 2.6 lakh words (50% reduction)

Total Pages: 622 (200 pages fewer than before)

4. Introduction of a Unified Tax Year

The New Income Tax Bill 2025 Highlights include the replacement of ‘Previous Year’ and ‘Assessment Year’ with a single Tax Year running from April 1 to March 31. The first tax year under this new system will be 2026–27.

5. Flexibility Between Old & New Tax Regimes

Taxpayers can choose between the old and new tax regimes, providing financial flexibility under the Income Tax Act 2025 PDF.

6. Digital Asset Taxation

The Income Tax Act 2025 PDF includes detailed taxation rules for cryptocurrencies, NFTs, and other virtual digital assets. The government will track undisclosed digital income for tax compliance.

7. Simplified Language for Easy Understanding

To reduce tax disputes and improve compliance, the Income Tax Act 2025 PDF incorporates easy-to-follow formulas, structured tables, and clear language.

8. No Changes in Tax Slabs

Existing tax slabs remain unchanged. Individuals earning up to INR 12 lakh will continue to have zero-tax liability after applying applicable rebates.

9. Retention of Five Income Categories

The Income Tax Act 2025 PDF maintains the classification of income into five categories:

Salary

House Property

Business/Profession

Capital Gains

Other Sources

10. Updated Section Numbers for Better Navigation

The New Income Tax Bill 2025 Highlights include revised section numbers for easy reference:

Salary Income: Sections 15–19 (earlier 15–17)

House Property: Sections 20–25 (earlier 20–27)

Business/Profession: Sections 26–66 (earlier 28–44)

Capital Gains: Sections 67–91 (earlier 45–55)

Other Sources: Sections 92–95 (earlier 56–59)

Where to Find the Income Tax Act 2025 PDF

For a detailed reference, you can download the Income Tax Act 2025 PDF from the official government portal or reputable taxation websites. This document contains all the latest provisions to help taxpayers stay compliant.

Conclusion

The Income Tax Act 2025 PDF introduces a structured, transparent, and efficient taxation system. Key changes in tax structure, compliance procedures, and digital asset taxation require early preparation. Stay updated, plan ahead, and access the Income Tax Act 2025 PDF to ensure smooth tax filing. Understanding the New Income Tax Bill 2025 Highlights will help taxpayers adapt effectively and avoid potential compliance issues.

[mytaxmentor]

Income Tax Slabs, India (Budget 2025)

📢 BREAKING: Budget 2025 - New Income Tax Slabs! 💰📊

✅ No tax up to ₹4 lakh (earlier ₹3 lakh) ✅ Zero tax for income up to ₹12 lakh (with rebate) ✅ Lower tax rates for middle-class earners ✅ Standard deduction increased to ₹75,000

📢 Budget 2025: New Income Tax Slabs & Rates Announced! 💰📊

The Union Budget 2025 has introduced significant tax reforms aimed at simplifying taxation and reducing the tax burden for individuals. 🚀

🔹 Higher tax exemption limit – Now ₹4 lakh (up from ₹3 lakh) 🔹 Zero tax for income up to ₹12 lakh (with rebates) 🔹 Lower tax rates for middle-class earners 🔹 Standard deduction increased from ₹50,000 to ₹75,000

🔍 Key Tax Slab Changes (Old vs. New Regime):

✅ No tax up to ₹4 lakh (previously ₹3 lakh) ✅ Income between ₹4 lakh - ₹8 lakh taxed at 5% ✅ Income between ₹8 lakh - ₹12 lakh taxed at 10% (was 20% before!) ✅ Income between ₹12 lakh - ₹16 lakh taxed at 15% (was 30% before!) ✅ Income between ₹16 lakh - ₹20 lakh taxed at 20% ✅ Income between ₹20 lakh - ₹24 lakh taxed at 25% ✅ Above ₹24 lakh – tax remains 30%

💡 What This Means for You?

More tax savings due to reduced rates ✅

Simpler tax filing with fewer exemptions ✅

Higher disposable income for investments & spending ✅

🔥 Do you think these changes will benefit taxpayers? Drop your thoughts in the comments! 👇💬

[newspatrolling]

How Much Tax For 15 Lakh Salary?

With the new tax slabs announced, salaried individuals with Rs 15 lakh per annum income can save up to Rs 32,500

The 2025 Union Budget has brought cheer for the middle class, as the tax slabs for salaried individuals have been revised. Let us compare the old tax slab vs. the new tax slab to understand how much tax will be applicable on a salary of Rs 15 lakh per annum.

Annual Salary Rs 15 lakh - Old Tax slabIncome-Tax SlabsPrevious Tax Rate Tax PayableUp to Rs 3 LakhNilNilRs 3 Lakh to Rs 7 Lakh5%Rs 20,000Rs 7 Lakh to Rs 10 Lakh10%Rs 30,000Rs 10 Lakh to Rs 12 Lakh15%Rs 30,000Rs 12 Lakh to Rs 15 Lakh20%Rs 45,000Above Rs 15 Lakh30%NA

Tax Payable DetailsDescriptionAmountTax Payable (Including Cess)Rs 1,25,000Cess at 4%Rs 5,000Total Tax LiabilityRs 1,30,000

Annual Salary Rs 15 lakh - New Tax slabIncome-Tax SlabsNew Tax Rate Tax PayableUp to Rs 4 LakhNilNilRs 4 Lakh to Rs 8 Lakh5%Rs 20,000Rs 8 Lakh to Rs 12 Lakh10%Rs 40,000

Rs 12 Lakh to Rs 16 Lakh

(Rs 12.75 Lakh to Rs 15 Lakh = Rs 2.25 Lakh)15%Rs 33,750Rs 16 Lakh to Rs 20 Lakh20%NARs 20 Lakh to Rs 24 Lakh25%NAAbove Rs 24 Lakh30%NA

Tax Payable DetailsDescriptionAmountTax PayableRs 93,750Cess at 4%Rs 3,750Total Tax LiabilityRs 97,500

As is evident from above, the total tax liability on Rs 15 LPA as per old tax slab is Rs 1,30,000. But in the New Tax slab, the tax liability for Rs 15 LPA is Rs 97,500. That means savings of Rs 32,500 per year.

Important things to note about New Tax regime 2025

Zero tax till income of Rs 12.75 lakh / Full tax rebate under Section 87A - Under the new tax regime, the tax rebate available under Section 87A has been increased from Rs 25,000 to Rs 60,000. This effectively makes the total tax NIL on income of up to Rs 12.75 lakh.

Capital gains to be taxed separately - The Zero tax scheme will apply only to income earned exclusively via salary. If there are capital gains, that component will be taxed separately.

Option to choose between old and new tax regime - With significant benefits available in the tax slabs, it is expected that most taxpayers will shift to the new tax regime. In the last financial year 2023-24, around 72% taxpayers had opted for the new tax regime. With the revised tax slabs, more  than 90% taxpayers are expected to shift to the new tax regime.

Nex tax regime applicable on FY 2025-26 - The new tax regime will come into force from the new financial year 2025-26. It is subject to approval from the parliament.

source: newspatrolling.com

[kknnews]

Income Tax Slabs for FY 2025-26: Comparing New vs. Old Tax Regimes – Which is Better for You?

Income Tax Slabs for FY 2025-26: Comparing New vs. Old Tax Regimes – Which is Better for You...

KKN Gurugram desk | In her Union Budget speech for 2025, Finance Minister Nirmala Sitharaman announced significant income tax relief aimed at providing substantial benefits for middle-class taxpayers in India. A major highlight was the elimination of income tax for individuals earning up to Rs. 12.75 lakh annually, marking a crucial shift in the income tax structure for the financial year…

[news365timesindia]

bySubhash Chandra Agrawal Much awaited new Income Tax Act is announced to be introduced shortly in the Union Budget for fiscal-year 2025-26 to replace six decades old Income Tax Act 1961. It should be expected that new Income Tax Act will simplify Direct Tax system. Rather it would have been better that new Income Tax Act would have been simultaneously introduced with the Union Budget. Drastic cut in tax-slabs is welcome, but there is no clarity if surcharges and cess exist or not. Tax-payer is confused if income is tax-free till rupees 12 lakhs per annum with tax-slabs existing for incomes between rupees 4 lakhs and 12 lakhs. Evidently normal tax-payer is not educated enough that it will be possible only due to relief available under section 87A of Income Tax Act 1961. Incomes exceeding rupees 12 lakh will deprive tax-payer of relief available under section 87A of Income Tax Act 1961. Direct tax-system could be most simplified by raising basic tax-exemption limit anywhere between rupees 4 lakhs and rupees 12 lakhs but abolishing confusing relief available under section 87A of Income Tax Act 1961. There should be only one tax-regime abolishing old tax-regime. Net tax-rate should not exceed 30-percent abolishing system of surcharges and cess to be in tune with most other countries of the world in accordance with recommendations of Raja Chelliah Committee for better tax compliance. With tax-slabs drastically cut, tax-exemptions including on charity, donation, contribution to political parties and even agricultural-income which are largely misused should be abolished. An ordinary farmer does not earn more than rupees four lakhs per annum, and the provision is grossly misused by ultra-rich persons including known celebrities to declare their unaccounted income as agricultural income through some village-land purchased only for whitening the black income without having any agricultural produce. India should step towards cashless economy like in Sweden by taking bold steps to bring cash in circulation in banking economy as was visualised at time of demonetisation of currency on 08.11.2016. A permanent Voluntary Disclosure Scheme can be introduced whereby provision may be there in tax-return to declare at highest suggested tax-rate of 30-percent, any income without disclosing source of income. This will make cash-transaction specially in property-deals accounted if registration-fees on property-deals is also reduced to say just five-percent inclusive of municipal taxes and capital-gain further cut to 10-percent like on shares. Names of all those disclosing incomes under suggested highest 30-percent slab should be on website according to income disclosed so that status-conscious persons may race to disclose more incomes. LK Jha committee recommendations to make calendar-year as fiscal-year should be implemented to be in line with most countries of the world, thus abolishing another British legacy of following April-March presently as Fiscal Year. It is ridiculous to have different Depreciation-Rules for Tax and Corporate audits. There should be a single and unified Tax and Corporate Audit. All sale-purchases above rupees 10000 must be compulsorily through bank-transactions. For this, transaction-charges on credit-cards should be slashed down to just half-percent (GST-exempted) that too to be borne by central government with all incentives on purchases made through credit-cards abolished. Present high two-percent transaction-charges on credit-cards make traders charge it separately from customers specially where trade-margins are low. System will fetch much higher tax-revenue for government, than through half-percent transaction-charges to be borne by government. Banks issuing credit-cards will get much-more earning even with half-percent transaction-charge because of manifold use of credit-cards. Two sets of credit-card swapping-machines should be compulsory for every GST-registered dealer so as to avoid declining payment through credit-cards with usual excuse that swapping-machine is out of order.

Strict-most action must be there against those refusing payment through credit/debit cards.  Input-Tax-Credit system in GST-regime in manufacturing-sector is biggest corrupt practice of tax-evasion where left-out GST-invoices by ordinary customers are sold by traders to consuming manufacturers or producers to avail false Input-Tax-Credit where cash is paid back by traders to those purchasing left-out GST-invoices of actual consumers bringing more currency in circulation, this being the reason of rapid and regular rise in currency-circulation. Annual forensic audit may be made compulsory on claims made for Input-Tax-Credit by manufacturers/producers to avoid false claims of excessive Input-Tax-Credit in these sectors. Rather study should be made if with abolition of 18-percent GST slab, Input-Tax-Credit can be altogether abolished from manufacturing/producing sectors, retaining it only on tradable commodities.  Input-Tax-Credit system under GST should not be available on expenses like has rightly be done in case of car-expenses for non-commercial use. With such large-scale reduction in Input-Tax-Credit and merging GST-slabs of 3 and 5 percent into a new slab of 6-percent apart from raising 28-percent GST slab to 30-percent, it may be possible to abolish 18-percent GST-slab thus reducing GST-slabs to just 6, 12 and 30-percent. India is the only country which has so many GST-rates. Gradually even slabs of 6 and 12 percent may also be replaced by a new 10-percent tax-structure. Zero-percent GST may only be retained on totally unbranded raw-materials which cannot be consumed without giving a finishing touch like agricultural-products, fish, meat, cotton-yarn etc. All items of long-term use like cars, air-conditioners, TV-sets, refrigerators etc may attract 30-percent GST while their parts may uniformly attract 12-percent GST. It is ridiculous that clutch-plate and clutch-bearing are under different GST-slabs of 18 and 28 percent. Likewise different food-items like sweets, biscuits, namkins etc attract different GST-slabs with luxury sweets causing diabetes attracting just 5-percent GST. Invoices for items like gold-jewellery can be drawn in two parts, one for metal and embodied items and the other for making-charges so that suggested 12-percent GST may be payable only on making-charges. Cess on extra-luxurious items should be replaced by additional GST-slabs in multiples of 60-percent, also bringing petroleum products under GST-regime to ensure uniform pricing of petrol and diesel in all states.  With GST-slab of 18-percent abolished and service sector then attracting just 12-percent GST, those with income of rupees ten lakhs or more (instead of present rupees 20 lakhs) can be brought under GST-regime like was the system before GST-regime with lawyers also coming under purview of GST-regime. Useless system of Tax-Deducted-At-Source for GST, which is hardly used in practice, should be altogether abolished. All government-payments can be considered to be exempted from GST to avoid unnecessary government-accounting by putting tax from one government-pocket to other. It is illogical that some premium postal-services like Speed-Post may attract GST while other postal-services do not attract GST. Even illogical and irrational postal-rates (both inland and foreign) need simplification for equal rise of postal-tariff for equal rise in slab-weight in multiples of 50 gms. of inland postal-article with all postal-tariffs being in multiples of rupees ten except for registered-newspapers and post-cards which may cost rupee one with abolition of outdated Inland-Letter-Cards. Presently a postal-article weighing 200 gms sent locally by reliable and fast Speed Post costs just rupees 30 but if sent by unreliable ordinary post, it will cost rupees 50. Likewise foreign-mail tariffs can be fixed for 20 gms or part slab-weight independently for air and sea-surface-mail. Writer is Guinness World Record Holder for writing most letters and RTI Consultant

[news365times]

bySubhash Chandra Agrawal Much awaited new Income Tax Act is announced to be introduced shortly in the Union Budget for fiscal-year 2025-26 to replace six decades old Income Tax Act 1961. It should be expected that new Income Tax Act will simplify Direct Tax system. Rather it would have been better that new Income Tax Act would have been simultaneously introduced with the Union Budget. Drastic cut in tax-slabs is welcome, but there is no clarity if surcharges and cess exist or not. Tax-payer is confused if income is tax-free till rupees 12 lakhs per annum with tax-slabs existing for incomes between rupees 4 lakhs and 12 lakhs. Evidently normal tax-payer is not educated enough that it will be possible only due to relief available under section 87A of Income Tax Act 1961. Incomes exceeding rupees 12 lakh will deprive tax-payer of relief available under section 87A of Income Tax Act 1961. Direct tax-system could be most simplified by raising basic tax-exemption limit anywhere between rupees 4 lakhs and rupees 12 lakhs but abolishing confusing relief available under section 87A of Income Tax Act 1961. There should be only one tax-regime abolishing old tax-regime. Net tax-rate should not exceed 30-percent abolishing system of surcharges and cess to be in tune with most other countries of the world in accordance with recommendations of Raja Chelliah Committee for better tax compliance. With tax-slabs drastically cut, tax-exemptions including on charity, donation, contribution to political parties and even agricultural-income which are largely misused should be abolished. An ordinary farmer does not earn more than rupees four lakhs per annum, and the provision is grossly misused by ultra-rich persons including known celebrities to declare their unaccounted income as agricultural income through some village-land purchased only for whitening the black income without having any agricultural produce. India should step towards cashless economy like in Sweden by taking bold steps to bring cash in circulation in banking economy as was visualised at time of demonetisation of currency on 08.11.2016. A permanent Voluntary Disclosure Scheme can be introduced whereby provision may be there in tax-return to declare at highest suggested tax-rate of 30-percent, any income without disclosing source of income. This will make cash-transaction specially in property-deals accounted if registration-fees on property-deals is also reduced to say just five-percent inclusive of municipal taxes and capital-gain further cut to 10-percent like on shares. Names of all those disclosing incomes under suggested highest 30-percent slab should be on website according to income disclosed so that status-conscious persons may race to disclose more incomes. LK Jha committee recommendations to make calendar-year as fiscal-year should be implemented to be in line with most countries of the world, thus abolishing another British legacy of following April-March presently as Fiscal Year. It is ridiculous to have different Depreciation-Rules for Tax and Corporate audits. There should be a single and unified Tax and Corporate Audit. All sale-purchases above rupees 10000 must be compulsorily through bank-transactions. For this, transaction-charges on credit-cards should be slashed down to just half-percent (GST-exempted) that too to be borne by central government with all incentives on purchases made through credit-cards abolished. Present high two-percent transaction-charges on credit-cards make traders charge it separately from customers specially where trade-margins are low. System will fetch much higher tax-revenue for government, than through half-percent transaction-charges to be borne by government. Banks issuing credit-cards will get much-more earning even with half-percent transaction-charge because of manifold use of credit-cards. Two sets of credit-card swapping-machines should be compulsory for every GST-registered dealer so as to avoid declining payment through credit-cards with usual excuse that swapping-machine is out of order.

Strict-most action must be there against those refusing payment through credit/debit cards.  Input-Tax-Credit system in GST-regime in manufacturing-sector is biggest corrupt practice of tax-evasion where left-out GST-invoices by ordinary customers are sold by traders to consuming manufacturers or producers to avail false Input-Tax-Credit where cash is paid back by traders to those purchasing left-out GST-invoices of actual consumers bringing more currency in circulation, this being the reason of rapid and regular rise in currency-circulation. Annual forensic audit may be made compulsory on claims made for Input-Tax-Credit by manufacturers/producers to avoid false claims of excessive Input-Tax-Credit in these sectors. Rather study should be made if with abolition of 18-percent GST slab, Input-Tax-Credit can be altogether abolished from manufacturing/producing sectors, retaining it only on tradable commodities.  Input-Tax-Credit system under GST should not be available on expenses like has rightly be done in case of car-expenses for non-commercial use. With such large-scale reduction in Input-Tax-Credit and merging GST-slabs of 3 and 5 percent into a new slab of 6-percent apart from raising 28-percent GST slab to 30-percent, it may be possible to abolish 18-percent GST-slab thus reducing GST-slabs to just 6, 12 and 30-percent. India is the only country which has so many GST-rates. Gradually even slabs of 6 and 12 percent may also be replaced by a new 10-percent tax-structure. Zero-percent GST may only be retained on totally unbranded raw-materials which cannot be consumed without giving a finishing touch like agricultural-products, fish, meat, cotton-yarn etc. All items of long-term use like cars, air-conditioners, TV-sets, refrigerators etc may attract 30-percent GST while their parts may uniformly attract 12-percent GST. It is ridiculous that clutch-plate and clutch-bearing are under different GST-slabs of 18 and 28 percent. Likewise different food-items like sweets, biscuits, namkins etc attract different GST-slabs with luxury sweets causing diabetes attracting just 5-percent GST. Invoices for items like gold-jewellery can be drawn in two parts, one for metal and embodied items and the other for making-charges so that suggested 12-percent GST may be payable only on making-charges. Cess on extra-luxurious items should be replaced by additional GST-slabs in multiples of 60-percent, also bringing petroleum products under GST-regime to ensure uniform pricing of petrol and diesel in all states.  With GST-slab of 18-percent abolished and service sector then attracting just 12-percent GST, those with income of rupees ten lakhs or more (instead of present rupees 20 lakhs) can be brought under GST-regime like was the system before GST-regime with lawyers also coming under purview of GST-regime. Useless system of Tax-Deducted-At-Source for GST, which is hardly used in practice, should be altogether abolished. All government-payments can be considered to be exempted from GST to avoid unnecessary government-accounting by putting tax from one government-pocket to other. It is illogical that some premium postal-services like Speed-Post may attract GST while other postal-services do not attract GST. Even illogical and irrational postal-rates (both inland and foreign) need simplification for equal rise of postal-tariff for equal rise in slab-weight in multiples of 50 gms. of inland postal-article with all postal-tariffs being in multiples of rupees ten except for registered-newspapers and post-cards which may cost rupee one with abolition of outdated Inland-Letter-Cards. Presently a postal-article weighing 200 gms sent locally by reliable and fast Speed Post costs just rupees 30 but if sent by unreliable ordinary post, it will cost rupees 50. Likewise foreign-mail tariffs can be fixed for 20 gms or part slab-weight independently for air and sea-surface-mail. Writer is Guinness World Record Holder for writing most letters and RTI Consultant