Tech Munshi
The Finance Ministry, through its Union Budget 2025, had made many changes which are effective from 1st April, 2025. Most of the changes have been made keeping in mind the hardship faced by Taxpayers. We will discuss major changes made in Income Tax, which are effective from 01/04/2025:
- Revised Income Tax slab for F.Y- 2025-26 (A.Y-2026-27)
| INCOME TAX | Tax Rate |
|---|---|
|
Up to 4 Lacs |
NIL |
|
4 Lacs to 8 Lacs |
5% |
|
8 Lacs to 12 Lacs |
10% |
|
12 Lacs to 16 Lacs |
15% |
|
16 Lacs to 20 Lacs |
20% |
|
20 Lacs to 24 Lacs |
25% |
|
Above 24 Lacs |
30% |
This Income Tax slab applies to Taxpayers who will opt for the New Tax Regime. However, from A.Y. 2024-25, the New Tax Regime is selected by default. Apart from the change in Income Tax slab, the Limit of Rebate u/s 87A has been increased from Rs. 25,000 to Rs. 60,000. There is no change in the Rebate u/s 87A if the Old Tax Regime is opted.
- Changes in TDS Threshold Limits:
Budget 2025 had also changed the threshold limit of transactions to be eligible for TDS under different sections as below:
| Section | New Treshold Limit (Rs) |
|---|---|
|
193 – Interest on Securities |
10000 |
|
194A – Interest Other Than Interest on Securities |
100000 For Senior citizens, 50000 for others |
|
194 – Dividend |
10000 |
|
194 L – Rent |
600000/year |
|
194H – Commission or brokerage |
20000 |
|
194j – Free for professional or technical services |
50000 |
|
194T – Remuneration, Interest and Commission paid to partners |
20000 |