Many new and notable changes in income tax rules have been introduced into Indian tax regulation under the year 2025. Most of the tax slabs, exemptions, and deductions have been substantially revamped. These shall significantly impact all salaried individuals, self-employed persons, and business entities. A brief summary of new changes introduced is discussed here, as well as what further taxes one will need to pay.
1. New income tax Slabs
The government has revised the income tax slab structure in the new regime. While the basic exemption remains unchanged for low-income groups, for some high-income persons, tax liability is slightly increasing.
- For individual earning up to ₹2.5 lakh per annum- No charge
- Income between ₹2.5 lakh to ₹5 lakh-5 percent.
- Income Between ₹5 lakh to ₹7.5 lakh – the tax levied as 10%.
- Income Between ₹7.5 lakh to ₹10 lakh – 15% tax.
- Above ₹10 lakh – 20-30 percent taxes according to the bracket.
But then, under the old tax regime, these deductions have to be claimed by the taxpayer under different sections like 80C, 80D, and HRA.
2.Changes In Standard Deductions
The raise of such standard deductions from ₹50,000 to ₹60,000 gives the benefit for the middle class. It will also be added even for salaried persons and pensioners.
3. Capital Gains Tax Increased?
Of course, one major change in the new laws would have to be capital gains, where the tax will now be levied at 12% instead of 10%. The government has been concentrating especially on capital gains above ₹10 lakh, thus creating negative consequences for investors at large in both stocks and property.
4. Increased TDS On High Income
TDS has also been changed on high-value transactions like purchases of property, foreign remittances, and crypto earnings. Now, individuals will be charged by this new rule with a tax of 20% if making an international remittance above ₹7 lakh. Unless, of course, the individual is exempted under any provision of the Act.
5. Senior Citizen Relief
Filing income tax returns is now made simpler for citizens who are aged 75 years and older. This rule is likely to exempt them from ITR filing when their addresses provide only pension and interest income from bank deposits.
Conclusion
Thus, taxation rules in the new 2025 directives complement each other. While standing in line for receipts will not be what some middle-class taxpayers have to do, others may well be moaning in resentment as the high-income earners and investors have their capital gains tax raised and TDS rules revised. Therefore, financial planning is crucial together with consulting a tax advisor to maximize available exemptions and deductions.
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