Blog

As the new income tax year 2025 – 26 begins, tax­pay­ers in India must be aware of sig­nif­i­cant changes in tax slabs, deduc­tions, and fil­ing require­ments. The gov­ern­ment has intro­duced updates to ben­e­fit indi­vid­u­als and busi­ness­es, impact­ing finan­cial plan­ning.

Key High­lights

1. Revised Income Tax Slabs The new tax régime now offers revised slabs:Income up to ₹7.5 lakh is tax-free after rebate under Sec­tion 87A.Tax rates: 5% (₹2.5L-5L), 10% (₹5L‑7.5L), 15% (₹7.5L-10L), 20% (₹10L-12.5L), 25% (₹12.5L-15L), and 30% (above ₹15L).

2. Increased Deduc­tions & Exemp­tions Stan­dard Deduc­tion raised to ₹60,000 for salaried employees.80C Lim­it increased to ₹2 lakh for PPF, ELSS, LIC, etc.80D (Health Insur­ance) lim­it raised to ₹1 lakh for senior cit­i­zens.

3. Com­pli­ance & Fil­ing Updates Aad­haar-PAN link­ing mandatory.Higher penal­ties for late ITR filing.Pre-filled ITR forms for sim­pli­fied tax fil­ing.

These changes aim to sim­pli­fy tax­a­tion and offer more sav­ings. Tax­pay­ers should eval­u­ate their tax régime choice and plan invest­ments wise­ly for FY 2025 – 26.