Income Tax Slabs
The new income tax regime has been made the default tax regime. The slab rates are:
| Income Tax | Rates |
| Upto ₹ 4 lakh | NIL |
| ₹4 lakh – 8 lakh | 5% |
| ₹8 lakh – 2 lakh | 10% |
| ₹12 lakh – 16 lakh | 15% |
| ₹16 lakh – 20 lakh | 20% |
| ₹20 lakh – 24 lakh | 25% |
| Above ₹24 lakh | 30% |
However, the citizens will continue to have the option to avail the benefits of the old tax regime.
For Old Tax Regime – Form 10IEA need to be filed.
Standard Deduction
For salaried individuals, ₹50,000 under old tax regime and ₹75,000 for new tax regime.
Section 87A rebate
- Under Old Tax Regime – If you have income including special income rebate up to ₹12,500.
- Under New Tax Regime – ₹60,000 for income up to ₹12 lakh only for the income excluding special income (previous limit up to March 2025 is Rs. 25,000)
Tax on Investment
- Long Term Capital Gain Tax Rate = 12.5% (10% up to 23-07-24)
- Short Term Capital Gain Tax Rate = 20% (15% up to 23-07-24)
ITR Filing Time Limit
The time limit for filing an updated ITR from existing 24 months to 48 months from the end of the relevant assessment year.
Note – Time limit for filing updated ITR extended from 2 years to 4 years.
Changes in TDS Limits
| Section | Threshold Limits From 1st April 2025 |
| 193 | ₹10,000/- during a financial year |
| 194A | (i) ₹1,00,000/- for senior citizen (ii) ₹50,000/- for others |
| 194 & 194K | ₹10,000/- in a year |
| 194B & 194BB | ₹10,000/- in respect of a single transaction |
| 194D, 194G & 194H | ₹20,000/- in a financial year |
| 194-I | ₹50,000/- per month or part of a month |
| 194J | ₹50,000/- during the financial year |
| 194LA | ₹5,00,000/- for the financial year |
New Section
Section 194T – This section mandates that partnership firms and Limited Liability Partnerships (LLPs) deduct TDS at a rate of 10% on payments exceeding ₹20,000 made to their partners within a financial year.
Changes in TDS Rates
| Section | From 1st April 2025 | Up To 31st March 2025 |
| Section 194D – Payment of insurance commission | 2% | 5% |
Click Here For Full Breakdown – Updated TDS Chart As Per Budget 2025
Changes in TCS
- LRS remittance limit for TCS raised from ₹7 lakh to ₹10 lakh per year.
- No TCS on student loans for foreign education (up to 31st March 2025 is 7 Lakhs)
- TCS on the sale of goods under Section 206C(1H) removed (up to 31st March 2025 is 50 Lakhs)
UPI Updates
- Inactive mobile numbers will automatically deactivate linked UPI IDs.
- Banks will verify mobile numbers weekly.
- Numeric UPI IDs (linked to mobile numbers) require user consent.
ATM Withdrawal Charges Increased
The Reserve Bank of India has permitted banks to increase the fee for ATM cash withdrawals beyond the free monthly limit from ₹2 to ₹23 per transaction.
Note – Extra withdrawals beyond free limits now will be charged ₹23 per transaction.