The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, introduced significant amendments to India\’s income tax structure, particularly under the new tax regime. Here are the key changes:
Revised Income Tax Slabs:
Income up to ₹12 lakh: No income tax will be levied.
Standard Deduction – ₹75,000, effectively making income up to ₹12.75 lakh tax-exempt.
For incomes exceeding ₹12.75 lakh, the revised tax slabs are as follows:
Additional Tax Reforms:
TDS and TCS Rationalization: The limit for Tax Deducted at Source (TDS) on interest for senior citizens has been doubled from ₹50,000 to ₹1 lakh. The annual limit for TDS on rent has increased from ₹2.4 lakh to ₹6 lakh.
Extended Deadline for Filing Updated Returns: The timeframe to file updated income tax returns has been extended from two to four years.
These amendments aim to simplify the tax structure, provide relief to taxpayers, and encourage compliance.
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