As we approach the financial year 2025-26, taxpayers across the country are keen to understand the latest changes in Income Tax laws, slabs, exemptions, and deductions. The government regularly updates tax policies to boost compliance, encourage investments, and provide relief to various income groups. This article outlines the key highlights and expected updates for Income Tax 2025.
Income Tax Slabs for Individuals in 2025
The government maintains two tax regimes: the Old Tax Regime with exemptions and deductions, and the New Tax Regime with lower slabs but fewer exemptions.
New Tax Regime Slabs (Expected for FY 2025-26)
| Income Range (โน) | Tax Rate |
|---|---|
| Up to 3,00,000 | Nil |
| 3,00,001 to 6,00,000 | 5% |
| 6,00,001 to 9,00,000 | 10% |
| 9,00,001 to 12,00,000 | 15% |
| 12,00,001 to 15,00,000 | 20% |
| Above 15,00,000 | 30% |
Old Tax Regime Slabs (Expected for FY 2025-26)
| Income Range (โน) | Tax Rate |
|---|---|
| Up to 2,50,000 | Nil |
| 2,50,001 to 5,00,000 | 5% |
| 5,00,001 to 10,00,000 | 20% |
| Above 10,00,000 | 30% |
Key Changes and Updates in Income Tax 2025
- Higher Basic Exemption Limit: The basic exemption threshold may be revised upwards to provide relief to lower-income earners.
- Standard Deduction: Expected to increase marginally, benefitting salaried individuals.
- New Deductions: Potential introduction of new tax-saving options to encourage investment in green energy and startups.
- Simplification of Compliance: Digital filing processes and pre-filled returns will make tax filing easier.
- Capital Gains Tax: Possible changes in long-term and short-term capital gains rules to align with international standards.
Tax Benefits to Watch For
- Increased deductions under Section 80C: Limit likely to remain at โน1.5 lakh, but new eligible investments may be added.
- Health Insurance Premiums: Benefits under Section 80D for health insurance could see enhanced limits.
- Home Loan Interest: Potential hike in deductions under Section 24 for self-occupied properties.
Important Dates to Remember
- Filing Deadline: Typically July 31st for individuals (subject to extension).
- Advance Tax Dates: Quarterly deadlines for advance tax payments remain the same.
- Tax Audit: Applicable for specified turnover or income levels, deadlines to be notified by the CBDT.
Ashish Rai is a professional automotive writer with four years of experience crafting reviews, features, and technical guides. Passionate about vehicles, he translates complex engineering concepts into engaging content. Covering market trends, EV developments, and driving experiences, Ashish delivers insightful, reader-friendly articles that ignite automotive enthusiasm worldwide consistently with integrity.
