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Income Tax Budget 2025 Live Highlights: Salaried taxpayers wont have to pay any taxes on annual income of up to Rs 12,75,000; check your income tax calculation as per old and new tax regime
03 Feb, 2025 | 10:43:54 AM IST
Synopsis
Income Tax Slabs 2025-26 Budget 2025 Updates: Under the newly announced tax slabs under the new regime, no income tax will be payable on annual income of up to Rs 12,00,000. For salaried individuals opting for the new tax regime, income of up to Rs 12,75,000 will be tax-free. Section 87A rebate has been increased to 60,000, from its previous threshold of Rs 25,000 under the new tax regime.
Budget 2025 Income Tax Updates: The middle class was hoping for a favorable change in the income tax slabs ahead of the Union Budget 2025-26, and they were not disappointed. Check which income tax regime will work best for you—the old one, the new (existing one), or the new (proposed one).
Budget 2025-26 highlights
NPS Vatsalya to be treated at par with other NPS accounts
Section 87A rebate under the new tax regime has been increased from Rs 25,000 to Rs 60,000
Basic income tax exemption limit raised from Rs 3,00,000 in existing new regime to Rs 4,00,000 in proposed new regime
Proposed increase in TCS threshold on remittances under RBI’s Liberalized Remittance Scheme (LRS) from Rs. 7 lakh to Rs. 10 lakh
TCS not applicable to educational remittances funded by loans from specified financial institutions
Time for filing updated returns for any AY extended by 2 years
No Income payable on income of up to Rs 12,00,000 in the new tax regime
Here is how the new (proposed) tax regime will now look like:
Zero to Rs 4,00,000- No Tax
Rs 4,00,000 to Rs 8,00,000---5%
Rs 8,00,0001 to Rs 12,00,000---10%
Rs 12,00,001 to Rs16 lakh--15%
Rs 16,00,001 to Rs 20 lakh--20%
Rs 20,00,001 to Rs 24 lakh-- 25%
Above 24 lakh---30%
Show moreBudget 2025-26 highlights
NPS Vatsalya to be treated at par with other NPS accounts
Section 87A rebate under the new tax regime has been increased from Rs 25,000 to Rs 60,000
Basic income tax exemption limit raised from Rs 3,00,000 in existing new regime to Rs 4,00,000 in proposed new regime
Proposed increase in TCS threshold on remittances under RBI’s Liberalized Remittance Scheme (LRS) from Rs. 7 lakh to Rs. 10 lakh
TCS not applicable to educational remittances funded by loans from specified financial institutions
Time for filing updated returns for any AY extended by 2 years
No Income payable on income of up to Rs 12,00,000 in the new tax regime
Here is how the new (proposed) tax regime will now look like:
Zero to Rs 4,00,000- No Tax
Rs 4,00,000 to Rs 8,00,000---5%
Rs 8,00,0001 to Rs 12,00,000---10%
Rs 12,00,001 to Rs16 lakh--15%
Rs 16,00,001 to Rs 20 lakh--20%
Rs 20,00,001 to Rs 24 lakh-- 25%
Above 24 lakh---30%
1 New Update
Income Tax Budget 2025 Live Updates: Rebate under Section 87A will not be available for these specific incomes under the new, proposed regime in Budget 2025-26
Income Tax Budget 2025 Live Updates: In her budget 2025-26 announcements yesterday, FM Nirmala Sitharaman hiked the 87A rebate available under the new tax regime from existing Rs 25,000 to Rs 60,000 under the new proposed tax regime. But there are certain special incomes that are outside the purview of this rebate.
Read more about it here: Which types of incomes are not covered in rebate offered under Section 87A?
Read more about it here: Which types of incomes are not covered in rebate offered under Section 87A?
Income Tax Budget 2025 Live Updates: Will proposed changes under the new tax regime lead to people saving less? Here's what Dhirendra Kumar has to say
Income Tax Budget 2025 Live Updates: Under Budget 2025-26, FM Nirmala Sitharaman made annual income of up to Rs 12,00,000 tax-free. However, experts are worried that in a bid to spur consumption by putting more disposable income in the hands of individuals, has this budget pushed them away from saving and investing?
Read more about it here: Has Budget 2025-26 de-incentivized savings and investment-led behaviour?
Read more about it here: Has Budget 2025-26 de-incentivized savings and investment-led behaviour?
Income Tax Budget 2025 Live Updates: Did Budget 2025-26 hike the investment limits presently available under Section 80C of the Income Tax Act?
India Budget 2025 Income Tax Live Updates: Under Section 80C of the Income Tax Act, taxpayers could claim a total deduction of up to Rs 1,50,000. This included deductions for life insurance premiums paid, contributions to PPF, housing loan principal repayment, and more. Note that only taxpayers opting for the old tax regime could opt for these deductions.
Read more about it here: Has FM Nirmala Sitharaman introduced Section 80C deductions in the new tax regime
Read more about it here: Has FM Nirmala Sitharaman introduced Section 80C deductions in the new tax regime
Income Tax Budget 2025 Live Updates: How has Union Budget 2025-26 brought about a cheer for senior citizens?
Income Tax Union Budget 2025: For senior citizens, the TDS threshold deduction on interest, other than interest on securities, has been hiked from Rs 50,000 to Rs. 1,00,000. The limit was also enhanced from Rs 40,000 to Rs 50,000 for others, i.e., those other than senior citizens.
Read more about it here: Has TDS on interest income for senior citizens changed in this Budget 2025-26?
Read more about it here: Has TDS on interest income for senior citizens changed in this Budget 2025-26?
Income Tax Budget 2025 Live Updates: Revamped central KYC registry to be out soon; know how it will impact you
Budget 2025 Income Tax Live Updates: FM Nirmala Sitharaman announced yesterday that to enhance data security, the central KYC (know-your-customer) registry will be undergoing various enhancements and is set to be out soon. Going ahead, the KYC identifier shall now only be available to registered reporting entities (REs).
Read more about it here: How will an improved CKYC registry impact you?
Read more about it here: How will an improved CKYC registry impact you?
Income Tax Budget 2025 Live Updates: What are the new tax slabs proposed under the new tax regime by FM Nirmala Sitharaman in Union Budget 2025-26? Here's a quick reckoner
Income Tax Union Budget 2025: Bringing much-needed income tax cheer to India's middle-class, FM Nirmala Sitharaman hiked the basic income exemption limit from Rs 7 lakh in the previous new tax regime to Rs 12 lakh in the new, proposed tax regime. Here's how the new tax slabs under the proposed new income tax regime look like:
Zero to Rs 4,00,000—No Tax
Rs 4,00,000 to Rs 8,00,000---5%
Rs 8,00,0001 to Rs 12,00,000---10%
Rs 12,00,001 to Rs16 lakh--15%
Rs 16,00,001 to Rs 20 lakh--20%
Rs 20,00,001 to Rs 24 lakh-- 25%
Above 24 lakh---30%
Read more about it here: Which income tax slab will now be taxed at 30% under the new, proposed tax regime?
Zero to Rs 4,00,000—No Tax
Rs 4,00,000 to Rs 8,00,000---5%
Rs 8,00,0001 to Rs 12,00,000---10%
Rs 12,00,001 to Rs16 lakh--15%
Rs 16,00,001 to Rs 20 lakh--20%
Rs 20,00,001 to Rs 24 lakh-- 25%
Above 24 lakh---30%
Read more about it here: Which income tax slab will now be taxed at 30% under the new, proposed tax regime?
Income Tax Budget 2025 Live Updates: Are you a regular trader or investor in virtual digital assets such as cryptocurrency? Here is how Budget 2025-26 has impacted cryptos
Budget 2025 Income Tax Live Updates: The existing provisions of Section 158B of the IT Act provide the definition of undisclosed income to include any money, bullion, jewelry, or other valuable article or thing. Effective 1 February 2025, virtual digital assets or cryptocurrencies within the ambit of undisclosed income will also be a part of this list.
Read more about it here: Here's how Budget 2025-26 impacted trading and investing in cryptocurrencies
Read more about it here: Here's how Budget 2025-26 impacted trading and investing in cryptocurrencies
Income Tax Budget 2025 Live Updates: This major change related to how ULIPs (unit-linked insurance plans) was introduced in Budget 2025-26. Know more about it here
Income Tax Budget 2025 Live Updates: As per announcements made in budget 2025-26 yesterday, ULIPs to which exemption under section 10(10D) is not available (i.e., ULIPs issued after 1 February 2021 with an annual premium more than Rs. 2,50,000 for any of the years over the term of the ULIP), profit and gains from the redemption of such ULIPs will be taxable as capital gains from the sale of equity-oriented funds.
Read more about it here: How has taxation of ULIPs changed in Budget 2025-26?
Read more about it here: How has taxation of ULIPs changed in Budget 2025-26?
Income Tax Budget 2025 Live Updates: Budget 2025-26 hikes time limit to file updated returns, but there is a catch!
Budget 2025 Income Tax Live Updates: The time-limit to file the updated return for an assessment year will be increased from the existing 24 months to 48 months from the end of the relevant assessment year. However, the rate of additional income-tax payable for updated returns filed after expiry of 24 months but before 36 months shall be 60% of the aggregate of tax and interest payable. After expiry of 36 months and up to 48 months, the additional payable tax would be 70% of the aggregate of tax and interest payable, respectively.
Read more about it here: What will be the additional tax payable for filing updated returns (ITR-U) after 36 months from the relevant assessment year have passed?
Read more about it here: What will be the additional tax payable for filing updated returns (ITR-U) after 36 months from the relevant assessment year have passed?
Income Tax Budget 2025 Live Updates: If your salary goes over Rs 14,00,000 this year, how much will you be able to save in income tax?
Income Tax Union Budget 2025: Bringing a much-needed cheer to India's middle class, FM Nirmala Sitharaman made annual income of up to Rs 12,00,000 tax-free. However, if you are earning up Rs 14,00,000 in this annum, your tax liability under the existing new tax regime would turn out to be Rs 1,20,000. But under the proposed regime, your taxable liability would come down to Rs 90,000, meaning a benefit of Rs 30,000 for you under the proposed new tax regime.
Read more about it here: Will you be able to save on income tax if you earn Rs 14 lakh per annum?
Read more about it here: Will you be able to save on income tax if you earn Rs 14 lakh per annum?
Income Tax Budget 2025 Live Updates: Has Budget 2025-26 brought about major changes in the long-term capital gains (LTCG) and the short-term capital gains taxation (STCG) framework?
Budget 2025 Income Tax Live Updates: Union Budget 2025-26 did not introduce any major changes in the way LTCG and STCG taxes are calculated and levied for major asset classes such as gold, real estate, equities, and more. In Budget 2024, FM Sitharaman had announced a change in capital gains tax structure. While STCG was hiked from 15% to 20%, LTCG was also raised from 10% to 12.5%, minus any indexation benefits.
In this budget, FM Sitharaman highlighted that the Section 87A rebate will not be applicable to special incomes such as capital gains.
Read more about it here: How will STCG and LTCG taxes be levied post-Union Budget 2025-26?
In this budget, FM Sitharaman highlighted that the Section 87A rebate will not be applicable to special incomes such as capital gains.
Read more about it here: How will STCG and LTCG taxes be levied post-Union Budget 2025-26?
Income Tax Budget 2025 Live Updates: Will crypto-related transactions be included in taxpayer's AIS (Annual Information Statement) post Union Budget 2025-26?
India Budget 2025 Income Tax live Updates: Budget 2025-26 has increased the scope of income reporting related to cryptocurrency and other virtual digital assets. Going ahead, an individual will be required to submit a statement containing details of transactions relating to crypto assets to the Income Tax Authority. Further, in case of any defect in the statement, the Income Tax authority may intimate about such defect to the person, giving him an opportunity to rectify the defect within a period of 30 days from the date of such intimation.
Read more about it here: Will crypto-traders and investors be subject to more scrutiny post Union Budget 2025-26?
Read more about it here: Will crypto-traders and investors be subject to more scrutiny post Union Budget 2025-26?
Income Tax Budget 2025 Live Updates: Partial withdrawal under this scheme is tax-exempt post Union Budget 2025-26
India Budget 2025 Income Tax live Updates: After Union Budget 2025-26, a partial withdrawal up to 25% (for specified purpose) of contributions made by parents or guardians from the NPS scheme for minors (NPS Vatsalya) is exempt from taxation. This budget also accorded NPS Vatsalya tax benefits, i.e., made it at par with other NPS schemes for tax purposes under Section 80CCD. This benefit will be applicable for the old tax regime.
Income Tax Budget 2025 Live Updates: TDS threshold on commission on insurance under Section 194D hiked, will life insurance premiums be impacted?
Budget 2025 Income Tax Live Updates: Previously, under Section 194D of the I-T Act, insurance commissions exceeding Rs 15,000 would be subject to a 5% TDS. However, post Union Budget 2025-26, this threshold has been raised from Rs 15,000 to Rs 20,000, albeit the applicable TDS rate has been brought down from 5% to 2%. It remains to be seen how this will impact your life insurance premiums
Income Tax Budget 2025 Live Updates: This is the new list of assets covered under I-T department's block assessment scheme post Union Budget 2025-26
India Budget 2025 Income Tax Live Updates: After Union Budget 2025-26, the following assets will be in the purview of block assessment scheme, provided there is any undisclosed income or property (either wholly or partly) against them. Previously, the time limit for block assessment schemes was fixed at 10 years, which was later brought down to 6 years. In this budget, FM Sitharaman included cryptocurrency and other such VDAs (virtual digital assets) in this list.
As of February 1, 2025, the list includes:
(a) Money,
(b) Bullion,
(c) Jewellery,
(d) Other valuable articles or things, and
(e) Income based on any entry in books of account, other documents, and transactions
(f) Virtual digital assets such as cryptocurrency
As of February 1, 2025, the list includes:
(a) Money,
(b) Bullion,
(c) Jewellery,
(d) Other valuable articles or things, and
(e) Income based on any entry in books of account, other documents, and transactions
(f) Virtual digital assets such as cryptocurrency
Income Tax Budget 2025 Live Updates: After Budget 2025-26, withdrawals from this retirement scheme will be tax-exempt, move to significantly benefit senior citizens
Budget 2025 Income Tax Live Updates: FM Nirmala Sitharaman announced that exemption would be allowed to individuals who withdraw amounts deposited in the National Savings Scheme (NSS) before April 1, 1992. However, note that this exemption will only be available if the amount is withdrawn on or before August 29, 2024.
Read more about it here: Tax-free withdrawals on NSS post-union budget 2025-26
Read more about it here: Tax-free withdrawals on NSS post-union budget 2025-26
Income Tax Budget 2025 Live Updates: Higher TDS chargeable to non-PAN holders to be omitted from this date in 2025
Income Tax Union Budget 2025: Previously, under Section 206CC of the IT Act, in a case where the payer is not able to furnish PAN to the payee, tax shall be collected at one of the following rates, whichever is higher:
(i) twice the rate specified in the relevant provision of the IT Act; or
(ii) the rate of 5%, as the case may be.
However, starting April 1, 2025, this provision will be omitted, i.e., will not be applicable.
(i) twice the rate specified in the relevant provision of the IT Act; or
(ii) the rate of 5%, as the case may be.
However, starting April 1, 2025, this provision will be omitted, i.e., will not be applicable.
Income Tax Budget 2025 Live Updates: How to calculate income tax on income of up to Rs 12,50,000? See how to make your income tax liability zero
India Budget 2025 Income Tax live Updates: Yesterday, FM Sitharaman announced that annual income of up to Rs 12,00,000 will be tax-free under the new, proposed tax regime. However, does this mean that in case you earn even a little over Rs 12,00,000, will you be subject to taxes? Not necessarily!
Read more about it here: Here's how you can pay 0 taxes on an income of up to Rs 12.5 lakh
Read more about it here: Here's how you can pay 0 taxes on an income of up to Rs 12.5 lakh
Income Tax Budget 2025 Live Updates: Planning to travel abroad in 2025? This measure announced in Union Budget 2025-26 may not work in your favor
Income Tax Budget 2025 Live Updates: As part of announcements made under Union Budget 2025-26, FM Nirmala Sitharaman hiked the threshold for TCS on
remittances under the Liberalized Remittance Scheme (LRS) from Rs 7 lakh to Rs 10 lakh. What does this mean for you?
If you are purchasing an overseas tour package, here is how your TCS payable would have been on sale of overseas tour package
However, the revised limits, with effect from April 1, 2025:
remittances under the Liberalized Remittance Scheme (LRS) from Rs 7 lakh to Rs 10 lakh. What does this mean for you?
If you are purchasing an overseas tour package, here is how your TCS payable would have been on sale of overseas tour package
- Up to Rs. 7,00,000 p.a.: 5%
- Above Rs 7,00,000 p.a.: 20%
However, the revised limits, with effect from April 1, 2025:
- Up to Rs. 10,000,000 p.a.: 5%
- Above Rs 10,00,000 p.a.: 20%
Income Tax Budget 2025 Live Updates: What did Union Budget 2025-26 bring about for gig workers?
India Budget 2025 Income Tax live Updates: Recognizing the contribution of gig-workers, the government will arrange for their identity cards and registration on the e-Shram portal. They will be provided healthcare under the PM Jan Arogya Yojana. This measure is likely to assist nearly 1 crore gig workers.
According to Balasubramanian A, Senior VP and Business Head, TeamLease, “Collecting personal information on 1 cr gig workers in India, proving them with an ID card on the eShram portal,, and thereby enabling coverage through the Jan Arogya Scheme is a long-awaited step in the right direction—it officially recognizes them as part of the employment ecosystem and provides them with much-needed social security cover. With employment becoming more and more like a taxicab relationship, we need a framework of reforms that would recognize, legalize, and formalize the gig ecosystem."
According to Balasubramanian A, Senior VP and Business Head, TeamLease, “Collecting personal information on 1 cr gig workers in India, proving them with an ID card on the eShram portal,, and thereby enabling coverage through the Jan Arogya Scheme is a long-awaited step in the right direction—it officially recognizes them as part of the employment ecosystem and provides them with much-needed social security cover. With employment becoming more and more like a taxicab relationship, we need a framework of reforms that would recognize, legalize, and formalize the gig ecosystem."
Income Tax Budget 2025 Live Updates: These lesser-known items might get cheaper from Feb 2, 2025 after Union Budget 2025-26
Income Tax Union Budget 2025: Union FM Nirmala Sitharaman proposed to hike the BCD (basic custom duty) on Interactive Flat Panel Displays, used for making large-screen televisions and screens, from the present 10% to 20% from May 2025. However, these products may get cheaper, given that FM Sitharaman has proposed a reduction in customs duty rates effective February 2, 2025. These include:
- Articles of Jewellery and parts thereof: Reduction in tariff rate from 25% to 20%
- Solar Cells: Reduction in tariff rate from 25% to 20%
- Solar Module, other semiconductor devices and photovoltaic cells: Reduction in tarriff rate from 40% to 20%
- Mattress supports, articles of bedding, and similar furnishing, etc. Reduction in tarriff rate from 25% to 20%
- Bicycles: Reduction in tarriff rate from 35% to 20%
- Luminaries and lighting fittings, including searchlights and spotlights and parts thereof, etc.: Reduction in tarriff rate from 25% to 20%
Income Tax Budget 2025 Live Updates: This tax benefit announced in Budget 2025-26 is ONLY applicable in the old tax regime.
India Budget 2025 Income Tax Live Updates: While most of us think that FM Nirmala Sitharaman has made all personal-tax-related changes in the new, proposed tax regime, the FM has introduced one change under the old tax regime as well. As per her announcements, NPS Vatsalya accounts will get the same tax treatment as normal NPS accounts under Section 80CCD (1B) of the old tax regime. Section 80CCD (1B) offers an additional deduction of up to Rs 50,000 for contributions to NPS. This is over and above the limit of Rs 1.5 lakh available under Section 80CCD (1).
Going ahead, deductions will be allowed to the parent or guardians of minors for the amount paid or deposited in their NPS account, subject to the maximum overall limit of Rs 50,000/- for NPS (i.e., including any amount paid by the parent or guardian for themselves).
Going ahead, deductions will be allowed to the parent or guardians of minors for the amount paid or deposited in their NPS account, subject to the maximum overall limit of Rs 50,000/- for NPS (i.e., including any amount paid by the parent or guardian for themselves).
Income Tax Budget 2025 Live Updates: How much penalty is payable in case you delay filing your updated Income Tax Return (ITR-U) after Union Budget 2025-26?
Income Tax Union Budget 2025: Union Budget 2025-26 hiked the time limit to file an updated tax return (ITR-U) to 5 years, as opposed to three years, which will be effective from April 1, 2025. However, there is a hefty penalty payable in case you are late in filing an updated income tax return from the end of the relevant assessment year:
Read more about it here: Know all about the penalties payable if you file ITR-U late
- An additional 60% tax is payable if filed after three years but within four years from the end of the financial year
- An additional 70% tax is payable if filed after four years but within five years from the end of the financial year
Read more about it here: Know all about the penalties payable if you file ITR-U late
Income Tax Budget 2025 Live Updates: Looking to buy a home sometime super soon? Here is what Budget 2025 announced for you
Budget 2025 Income Tax Live Updates: The Union Budget 2025 brings a significant relief for homeowners by allowing tax benefits on two self-occupied properties instead of just one. Earlier, individuals had to pay tax on the notional rental income of a second home, adding to their financial burden. This change simplifies tax compliance and recognizes the need for housing flexibility, especially for families with homes in different cities for work, investment, or personal reasons.
According to Kaushal Agarwal, Co-Founder & Director of The Guardians Real Estate Advisory, "By reducing tax liabilities, this move is expected to boost homeownership and drive real estate demand, particularly in Tier 2 and Tier 3 cities. The budget also simplifies TDS rules on rental income, reducing compliance hassles for landlords and improving cash flow in the rental housing market."
According to Kaushal Agarwal, Co-Founder & Director of The Guardians Real Estate Advisory, "By reducing tax liabilities, this move is expected to boost homeownership and drive real estate demand, particularly in Tier 2 and Tier 3 cities. The budget also simplifies TDS rules on rental income, reducing compliance hassles for landlords and improving cash flow in the rental housing market."
Income Tax Budget 2025 Live Updates: Planning to travel abroad in the future? This move in Budget 2025-26 may slightly dampen your plans
India Budget 2025 Income Tax Live Updates: Budget 2025-26 increased the threshold for TCS (tax collected at source) on remittances under Liberalised
Remittance Scheme (LRS) from Rs 7 lakh to Rs 10 lakh. Under the LRS, resident individuals can send up to $2,50,000 per financial year (April–March)
Says Vinay Bagri, Co-Founder & CEO, Niyo, "On the international travel front, while the increase in the Liberalized Remittance Scheme (LRS) limit to Rs 10 lakh is a step forward, we were hoping for exemptions on TCS for global travelers, which remains a concern. The removal of TCS on education remittances from loans is a positive move, easing the financial strain on students. As a travel banking fintech, we believe these policy changes will impact how Indians engage with the global economy."
Remittance Scheme (LRS) from Rs 7 lakh to Rs 10 lakh. Under the LRS, resident individuals can send up to $2,50,000 per financial year (April–March)
Says Vinay Bagri, Co-Founder & CEO, Niyo, "On the international travel front, while the increase in the Liberalized Remittance Scheme (LRS) limit to Rs 10 lakh is a step forward, we were hoping for exemptions on TCS for global travelers, which remains a concern. The removal of TCS on education remittances from loans is a positive move, easing the financial strain on students. As a travel banking fintech, we believe these policy changes will impact how Indians engage with the global economy."
Income Tax Budget 2025 Live Updates: What did Budget 2025-26 bring for you? Here's a snapshot for you
Income Tax Budget 2025 Live Updates: Here is a quick summary of all major announcements made by FM Sitharaman in Union Budget 2025-26:
- Increase in threshold for TCS on remittances under the liberalized remittance scheme (LRS) from Rs 7 lakh to Rs 10 lakh.
- The time limit to file an updated return is extended from two years to four years from the end of the relevant assessment year.
- No TCS on remittances for education purposes where such remittance is funded through a loan taken from a specified financial institution.
- Removal of higher TDS/TCS for non-filers of return of income to reduce compliance burden on taxpayers.
- NPS Vatsalya accounts get the same tax treatment as normal NPS accounts. This will be applicable under the old regime
- The annual value of self-occupied properties (up to two properties) shall be taken as nil if the owner occupies it for own residence or cannot occupy it for any reason.
Income Tax Budget 2025 Live Updates: After the taxpayer-friendly measures introduced under the new, proposed regime, is the government ready to phase out the old tax regime in some time?
Income Tax Budget 2025 Live Updates: The Finance Minister has announced two major changes for individual taxpayers:
Adds Preeti Sharma, Partner, Tax & Regulatory Services, BDO India, "There is no change in the old tax regime, which clearly indicates the government’s agenda to reduce the number of takers of the old tax regime. The fine print of the new income-tax bill is not yet issued, but it indicates the government's intention to follow a single regime of taxation for individuals, which is aligned with the new regime of taxation."
- Increase in the amount of rebate available under the New Tax Regime for individuals having taxable income up to Rs 12 lakhs. Such a taxpayer group is not required to pay any taxes, and hence this will lead to a tax saving of Rs 80,000. If you are a salaried individual with a total income of Rs 12.75 lakhs, due to the availability of a standard deduction of Rs 75,000, you are not required to pay any taxes.
- Change in tax slab rates under the New Tax Regime, which will clearly bring tax savings to all classes of taxpayers, as the limit for minimum income subject to tax has been increased from Rs 3 lakhs to Rs 4 lakhs. Further, a 30% tax rate will now trigger at income above Rs 24 lakhs instead of Rs 15 lakhs.
Adds Preeti Sharma, Partner, Tax & Regulatory Services, BDO India, "There is no change in the old tax regime, which clearly indicates the government’s agenda to reduce the number of takers of the old tax regime. The fine print of the new income-tax bill is not yet issued, but it indicates the government's intention to follow a single regime of taxation for individuals, which is aligned with the new regime of taxation."
Income Tax Budget 2025 Live Updates: Will electric vehicles become cheaper after Union FM exempts duty on capital goods used in lithium-ion battery production?
Budget 2025 Income Tax Live Updates: In her Budget 2025-26 speech, the Finance Minister's proposed to fully exempt Basic Customs Duty (BCD) on cobalt powder, lithium-ion battery waste, scrap, and 12 other critical minerals. This initiative aims to secure the availability of these materials for manufacturing in India and create job opportunities for the youth.
However, Ankit Sharma, CEO & Co-Founder, Vidyuta, noted that they were hoping for a revision in the GST rates for lithium-ion batteries and EV charging infrastructure to match the 5% GST on electric vehicles. "Currently, while EVs are taxed at 5%, batteries and charging services are subject to an 18% GST," he adds.
However, Ankit Sharma, CEO & Co-Founder, Vidyuta, noted that they were hoping for a revision in the GST rates for lithium-ion batteries and EV charging infrastructure to match the 5% GST on electric vehicles. "Currently, while EVs are taxed at 5%, batteries and charging services are subject to an 18% GST," he adds.
Income Tax Budget 2025 Live Updates: By making annual income of up to Rs 12,00,000 tax-free under the new, proposed tax regime, how much revenue is the government foregoing?
Income Tax Union Budget 2025: Income tax relief measures announced under the new, proposed tax regime make annual income of up to Rs 12 lakh income-tax free. Along with this, revised slabs with a higher tax rate of 30% are now applicable with income over Rs 24 lakhs compared to Rs 15 lakhs till now. Per budget documents, the government will directly forego around Rs 1 lakh crore as a result of this. However, it is hoped that this will be directly beneficial for revival in domestic consumption.
Income Tax Budget 2025 Live Updates: FM Sitharaman takes a big step towards simplifying income tax-related provisions in Union Budget 2025-26. Here's how
Income Tax Union Budget 2025: One of the most significant announcements is the long-awaited relief for middle-class taxpayers, with a substantial increase in the income tax exemption threshold. Individuals earning up to Rs 12 lakh annually (excluding capital gains) will now be completely exempt from income tax—an impressive rise from the previous threshold of Rs 7 lakhs. This landmark move is set to provide much-needed financial relief to millions of households, enhancing their disposable income. In addition to this pivotal exemption, the Finance Minister also announced revisions in tax slabs. As part of the new regime, individuals earning Rs 24 lakhs and above will save up to Rs 1.10 lakh.
Adds CA Deepesh Chheda, Partner, Dhruva Advisors LLP, "further, this year’s budget goes beyond tax cuts, embracing a transformative approach under the theme ‘Trust First and Scrutinize Later.’ It signals a significant move toward simplifying income tax regulations while easing compliance and litigation burdens for individuals.".
Adds CA Deepesh Chheda, Partner, Dhruva Advisors LLP, "further, this year’s budget goes beyond tax cuts, embracing a transformative approach under the theme ‘Trust First and Scrutinize Later.’ It signals a significant move toward simplifying income tax regulations while easing compliance and litigation burdens for individuals.".
Income Tax Budget 2025 Live Updates: How has the Union Budget 2025-26 made potential homeowners and first-time home buyers happy with the new, proposed tax regime?
Income Tax Budget 2025 Live Updates: The Union Budget 2025 allows taxpayers to claim the annual value of two self-occupied properties as nil, exempting them from notional rental income taxation. Previously, only one property could be claimed as self-occupied, with additional properties taxed based on deemed rental income.
Adds Upendra Narayan, Founder L&Y Homes India Pvt Ltd, "With an increase in the TDS exemption threshold for rent from Rs 2.40 lakh to Rs 6 lakh, small property owners will benefit by reducing the number of transactions falling under the TDS regime, making compliance simpler, and improving affordability for small landlords. Furthermore, tax relief on income upto to Rs 12 lakh is a substantial benefit for taxpayers and will undoubtedly provide much-needed financial relief across sectors
Adds Upendra Narayan, Founder L&Y Homes India Pvt Ltd, "With an increase in the TDS exemption threshold for rent from Rs 2.40 lakh to Rs 6 lakh, small property owners will benefit by reducing the number of transactions falling under the TDS regime, making compliance simpler, and improving affordability for small landlords. Furthermore, tax relief on income upto to Rs 12 lakh is a substantial benefit for taxpayers and will undoubtedly provide much-needed financial relief across sectors
Income Tax Budget 2025 Live Updates: Will the new, proposed tax regime discourage savings and investment-focused behavior?
Income Tax Budget 2025 Live Updates: The proposed amendments are likely to give a significant boost to taxpayers opting for the new tax regime (NTR). With the tax-free income limit now raised to ₹12 lakh (₹12.75 lakh for salaried individuals) and revised slabs reducing overall tax liability, the middle-class income group stands to gain the most. In FY 2023-24, 72% of taxpayers had already opted for NTR, up from 66% in the previous year.
However, Hitesh Sharma, Partner, Vialto Partners, noted that while this trend is likely to continue, taxpayers who benefit from deductions (such as HRA, home loans, and investments) may still prefer the old tax regime. "The proposed amendments would increase the spendable income and encourage tax filing compliance; however, it could also possibly contribute to discouraging investments in savings schemes," he adds.
However, Hitesh Sharma, Partner, Vialto Partners, noted that while this trend is likely to continue, taxpayers who benefit from deductions (such as HRA, home loans, and investments) may still prefer the old tax regime. "The proposed amendments would increase the spendable income and encourage tax filing compliance; however, it could also possibly contribute to discouraging investments in savings schemes," he adds.
Income Tax Budget 2025 Live Updates: How will the raised TCS/TDS threshold post-Budget 2025-26 leave more funds in the hands of taxpayers?
Income Tax Budget 2025 Live Updates: The Finance Minister proposed welcoming changes in TDS and TCS provisions with an aim to rationalize the threshold limits, provide relief to taxpayers, and reduce compliance burdens for both taxpayers and deductors. Explains Anand Dhelia, Partner at Vialto Partners, says, "Raising the threshold for TDS/TCS on various payments (e.g., interest, dividends) and foreign remittances will improve cash flows in taxpayers’ hands. For instance, eliminating TCS applicability on education remittance will reduce the funds locked up for students availing loans to fund their education abroad. Further, it will be critical for taxpayers to remain vigilant in accurately accounting for net income/TDS/TCS while computing their advance tax obligations."
Income Tax Budget 2025 Live Updates: After Budget 2025-26, here is what will become cheaper for the Aam Aadmi's pockets
Income Tax Budget 2025 Live Updates: Here is a list of all the items that will become cheaper post Union Budget 2025-26
- FM Sitharaman proposed to fully exempt 36 lifesaving drugs and medicines from basic custom duty. This comes as a major relief for patients of cancer, rare diseases and other chronic conditions
- The telecom sector might also see some price dips since FM proposed to cut the basic custom duty from 20% to 10% on high-quality, carrier-grade ethernet switches
- Mobile phones may also get cheaper since 28 additional goods used in mobile phone battery production have been added to exempted capital goods list
Income Tax Budget 2025 Live Updates: After Budget 2025-26, here is what will become more expensive for the Aam Aadmi's pockets.
Income Tax Budget 2025 Live Updates: Even though FM Nirmala Sitharaman had made annual income of up to Rs 12,00,000 income-tax-free for taxpayers, there are certain products that have become more expensive
- Electronics: The basic custom duty (BCG) on Interactive Flat Panel Displays, which is largely used in large-panel televisions, has been revised upwards from 10% to 20%
- Textiles: The BCG on textiles has also been revised, from "10% or 20% to “20% or Rs 115 per kg, whichever is higher.
Income Tax Budget 2025 Live Updates: Under new proposed income tax regime, you can save anywhere between Rs 80,000 and Rs 1,10,000
Income Tax Union Budget 2025: From a direct tax perspective, the relief and changes in tax slab rates are welcome measures. Notably, income up to Rs. 12.75 lakhs (including a standard deduction of Rs. 75,000) has been made tax-exempt under the new tax regime. This does not apply to the special rate income such as capital gain, either long-term or short-term. Additionally, Vaibhav Jajoo, Advocate (CA), Dhruva Advisors LLP notes that tax slabs have been restructured, resulting in tax savings ranging from Rs. 80,000 to Rs. 1,10,000. "This was unexpected but is a significant and welcome move to provide relief to the middle class and stimulate spending in the economy," he adds.
Income Tax Budget 2025 Live Updates: This lesser-known perquisite is now tax-free under the new proposed tax regime
Budget 2025 Income Tax Live Updates: Starting April 1, 2026, the expenditure incurred by an employee for traveling outside India for the purpose of getting medical treatment, either for themselves or for their family member, will not be treated as a perquisite.
Know more about this here: These perquisites will be tax-free starting next year
Know more about this here: These perquisites will be tax-free starting next year
Union Budget 2025 Income Tax Live: Will your annual income of up to Rs 12,00,000 be tax-free under the new tax regime if it includes income from capital gains?
Union Budget 2025 Income Tax Live: In her budget speech, the Finance Minister announced that individuals earning an income of up to Rs. 12 lakhs will be exempt from income tax, excluding special rate income such as capital gains. Furthermore, salaried employees are entitled to a standard deduction of Rs. 75,000 under the new tax regime, effectively making their taxable income nonexistent for those earning up to Rs. 12,75,000.
Explains CA (Dr.) Suresh Surana, "While the basic exemption limit is Rs. 4 lakhs, the government provides relief to middle-class taxpayers by offering a rebate under Section 87A. This rebate allows individuals with income below the prescribed threshold to reduce their tax liability. However, it is important to note that taxpayers whose income includes special rate income, such as long-term or short-term capital gains, cannot claim this rebate against such income taxable at special rates."
This means that any income earned through short-term or long-term capital gains, income from lottery or horse racing, and more will not be considered for the purpose of tax calculation under the new, proposed regime.
Explains CA (Dr.) Suresh Surana, "While the basic exemption limit is Rs. 4 lakhs, the government provides relief to middle-class taxpayers by offering a rebate under Section 87A. This rebate allows individuals with income below the prescribed threshold to reduce their tax liability. However, it is important to note that taxpayers whose income includes special rate income, such as long-term or short-term capital gains, cannot claim this rebate against such income taxable at special rates."
This means that any income earned through short-term or long-term capital gains, income from lottery or horse racing, and more will not be considered for the purpose of tax calculation under the new, proposed regime.
Income Tax Budget 2025 Live Updates: By when can you pay your pending TCS (tax collected at source) to avoid any litigation?
Income Tax Budget 2025 Live Updates: Union Budget 2025-26 increased the tax rebate from the previous threshold of Rs 7 lakhs to Rs 12 lakhs. According to Akhil Chandna, Partner, Global People Solutions Leader, Grant Thornton Bharat, "This benefits almost 85% of existing tax payers, comprising the self-employed, small businesses, and salaried class. Widening the tax slabs and expanding the limit of the maximum tax rate of 30% on income above Rs 24 lakhs, as against the current limit of 15 lakhs under the new tax regime and 10 lakhs under the old tax regime, is an added boost and ensures more net-in-hand income for this segment.
Apart from rationalization of TDS rates and enhancing limits for TDS and TCS applicability, the government has also eased prosecution and litigation in case of delayed TCS payment. Read more about it here: Pay due TCS by this date to avoid prosecution
Apart from rationalization of TDS rates and enhancing limits for TDS and TCS applicability, the government has also eased prosecution and litigation in case of delayed TCS payment. Read more about it here: Pay due TCS by this date to avoid prosecution
Income Tax Budget 2025 Live Updates: What is the new time limit mandated by Union Budget 2025-26 to file updated returns?
Budget 2025 Income Tax Live Updates: The Union Budget 2025-26 announced the extension of the time limit to file the updated return (ITR-U) from its current timeline of 24 months to 48 months. In her budget speech, Sitharaman noted that "nearly 90 lakh taxpayers voluntarily updated their incomes by paying additional tax. Taking this trust further, I now propose to extend the time limit to file updated returns for any assessment year.".
According to CA Bimal Jain, "The Finance Minister has placed significant emphasis on making income tax laws more transparent and predictable. The introduction of a new income tax bill, which is expected to be nearly half the size of the existing law, underscores a shift towards simplicity and clarity.".
Read more about it here: Know all about the new timelines proposed by Union Budget 2025-26 to file updated returns
According to CA Bimal Jain, "The Finance Minister has placed significant emphasis on making income tax laws more transparent and predictable. The introduction of a new income tax bill, which is expected to be nearly half the size of the existing law, underscores a shift towards simplicity and clarity.".
Read more about it here: Know all about the new timelines proposed by Union Budget 2025-26 to file updated returns
Union Budget 2025 Income Tax Live: Income Tax Calculator: If you are earning above Rs 16,00,000, being in THIS tax slab will get you maximum benefits
Budget 2025 Income Tax Live Updates: Under the new, proposed tax regime, if you are earning over Rs 16,00,000, you can save the maximum taxes under the Rs 24,00,000 and Rs 25,00,000 slabs. In both of these cases, you can save Rs 1,10,000 each by shifting to the newly proposed regime. Under the existing new regime, if you are earning Rs 24,00,000 per annum, you'd be liable to pay an income tax of Rs 4,10,000. But, under the new, proposed regime, your tax liability will come down to Rs 3,00,000.
Similarly, if you're earning Rs 25,00,000 per annum, your tax liability under the new, existing tax regime would come down to Rs 4,40,000. However, under the new, proposed regime, your tax liability will come down to Rs 3,30,000, saving you Rs 1,10,000 in taxes under this proposed tax regime.
Similarly, if you're earning Rs 25,00,000 per annum, your tax liability under the new, existing tax regime would come down to Rs 4,40,000. However, under the new, proposed regime, your tax liability will come down to Rs 3,30,000, saving you Rs 1,10,000 in taxes under this proposed tax regime.
Union Budget 2025 Income Tax Live: Income Tax Calculator: How much will your taxable liability be under the new proposed tax regime in case you earn over Rs 12,00,000?
Income Tax Budget 2025 Live Updates: The newly introduced tax changes are designed to leave more money in the pockets of citizens, enabling them to contribute to the economy in multiple ways. The minimum tax slab has been raised to Rs 12 lakhs from Rs 7 lakhs. The most striking change in the new regime is the removal of income tax for those earning up to Rs 12 lakhs and the revised tax slabs, which now see the 30% tax bracket apply only for those earning above Rs 24 lakhs. This means significant savings for middle-class earners.
According to Priyank Shah, Co-Founder & CEO of The Financialist, "these revisions aim to give people more financial flexibility, encouraging both increased consumption and enhanced savings and investments. As a result, more and more individuals will likely shift to this new tax regime, as the incentives are strong and appealing. With lower tax liabilities, people now have greater disposable income, which can be used to enhance their financial well-being."
Read more about it here: Know all about your taxable liability if your income exceeds Rs 12,00,000
According to Priyank Shah, Co-Founder & CEO of The Financialist, "these revisions aim to give people more financial flexibility, encouraging both increased consumption and enhanced savings and investments. As a result, more and more individuals will likely shift to this new tax regime, as the incentives are strong and appealing. With lower tax liabilities, people now have greater disposable income, which can be used to enhance their financial well-being."
Read more about it here: Know all about your taxable liability if your income exceeds Rs 12,00,000
Income Tax Budget 2025 Live Updates: Income Tax Calculator: If you are earning below Rs 15,00,000, you will get the maximum benefit of the new, proposed tax regime in THIS tax slab
Income Tax Budget 2025 Live Updates: If your annual income is below the Rs 15,00,000 threshold, you can save a maximum of Rs 80,000 under the new proposed tax regime. Under the existing tax slabs of the new regime, you'd be liable to pay a tax of up to Rs 80,000. However, with the new proposed tax slabs, income up to Rs 12,00,000 is tax-free. For salaried individuals, this limit stands at Rs 12,75,000 (including Rs 75,000 of standard deduction already present in the new regime).
This means that those earning up to Rs 12,00,000 will have 0 tax liability under the proposed regime. After this slab, those earning Rs 11,00,000 would be able to save Rs 65,000 under the proposed tax regime, since their tax liability under the new, proposed regime would be Rs 0.
This means that those earning up to Rs 12,00,000 will have 0 tax liability under the proposed regime. After this slab, those earning Rs 11,00,000 would be able to save Rs 65,000 under the proposed tax regime, since their tax liability under the new, proposed regime would be Rs 0.
Income Tax Budget 2025 Live Updates: Has Union Minister Nirmala Sitharaman announced any changes in standard deductions during Union Budget 2025-26?
Budget 2025 brings significant reforms to simplify taxes and provide relief to middle-class taxpayers. Noteworthy changes include tax exemption for taxpayers with income up to INR 12 lakh, tax-free withdrawals for senior citizens from the National Savings Scheme post-August 2024, and higher TDS exemption limits for rent and senior citizens’ interest income.
Shaily Gupta, Partner, Khaitan & Co., adds that "the Budget allows more time to file updated income tax returns, raises the TCS threshold for LRS to INR 10 lakh, and removes TCS for education-related remittances funded by loans from specified financial institutions."
However, the budget did not introduce any major changes in the standard deduction threshold presently available under the old and new tax regimes. Read more about it here: How much hike did FM Sitharaman make to the standard deduction threshold in Union Budget 2025-26?
Shaily Gupta, Partner, Khaitan & Co., adds that "the Budget allows more time to file updated income tax returns, raises the TCS threshold for LRS to INR 10 lakh, and removes TCS for education-related remittances funded by loans from specified financial institutions."
However, the budget did not introduce any major changes in the standard deduction threshold presently available under the old and new tax regimes. Read more about it here: How much hike did FM Sitharaman make to the standard deduction threshold in Union Budget 2025-26?
Budget 2025 Income Tax Live Updates: TDS reduced on interest income, rental income, move to benefit senior citizens, those having rental income
Income Tax Union Budget 2025: Post Union Budget 2025-26, the tax deduction limit on interest income is being doubled from Rs 50,000 to Rs 1 lakh. Additionally, the annual TDS limit on rent is being raised from Rs 2.40 lakh to Rs 6 lakh.
According to Adhil Shetty, CEO, BankBazaar.com, "The increase in TDS threshold amount for interest income for tax deduction brings much-needed relief to senior citizens. A major portion of the income of senior citizens comes from interest income. They also tend to hold a larger amount in their savings account. Also significantly reducing TDS on rental transactions will benefit those receiving modest rental income. These changes provide much-needed financial relief and simplicity, especially for retirees who rely on interest and rental earnings for their post-retirement financial stability."
Read more about it here: Know all about the TDS limits applicable on bank FDs and savings accounts
According to Adhil Shetty, CEO, BankBazaar.com, "The increase in TDS threshold amount for interest income for tax deduction brings much-needed relief to senior citizens. A major portion of the income of senior citizens comes from interest income. They also tend to hold a larger amount in their savings account. Also significantly reducing TDS on rental transactions will benefit those receiving modest rental income. These changes provide much-needed financial relief and simplicity, especially for retirees who rely on interest and rental earnings for their post-retirement financial stability."
Read more about it here: Know all about the TDS limits applicable on bank FDs and savings accounts
Budget 2025 Income Tax Live Updates: If you earn a salary of Rs 12,75,000 per annum, you can save up to Rs 95,000 under the new, proposed tax regime
Income Tax Budget 2025 Live Updates: Here is how you can save up to Rs 95,000 under the new, proposed tax regime in case you earn Rs 12,75,000 per annum
Tax payable under the new regime (existing)
Now, as per the existing tax slab in the new tax regime, a salaried person earning Rs 12.75 lakh was required to pay an income tax of Rs 95,000, but as of now he/she will not be required to pay any tax on this income as per the new proposal for financial year 2025-26. This will happen because a salaried person will get Rs 75,000 as a standard deduction, which brings his/her net taxable income to Rs 12 lakh. At his/her income, they will get Rs 60,000 as 87A rebate, which will make his/her net tax liability to Rs 0.
Tax payable under the new regime (existing)
- Rs. 3 to Rs 7 lakh--Rs 20,000
- Rs 7 lakh to Rs 10 lakh--Rs 30,000
- Rs 10 lakh to Rs 12 lakh---Rs 30,000
- Rs 12 lakh to Rs 12.75 lakh---Rs 15,000
- Rs 15 lakh to Rs 18 lakh-------Rs 0
Now, as per the existing tax slab in the new tax regime, a salaried person earning Rs 12.75 lakh was required to pay an income tax of Rs 95,000, but as of now he/she will not be required to pay any tax on this income as per the new proposal for financial year 2025-26. This will happen because a salaried person will get Rs 75,000 as a standard deduction, which brings his/her net taxable income to Rs 12 lakh. At his/her income, they will get Rs 60,000 as 87A rebate, which will make his/her net tax liability to Rs 0.
Budget 2025 Income Tax Live Updates: FM Nirmala Sitharaman gives a strong push to potential home owners, first-time home buyers?
Income Tax Budget 2025 Live Updates: Along with tax exemption on income up to Rs 12 lakh, the Union Budget also announced the launch of SWAMIH Fund 2, with a dedicated corpus of Rs 15,000 crore to complete one lakh stalled housing projects. Along with this, there was also a provision allowing the ownership of two self-occupied properties without additional tax conditions.
As per Vineet Nanda, Director Sales & Marketing, Krisumi Corporation, "The Budget 2025-26 marks a pivotal moment for our economy—a decisive step towards revitalizing demand and strengthening the backbone of our nation, the middle class. This is a welcome relief that will not only stimulate spending but also bolster confidence across various sectors, with real estate poised to be a prime beneficiary. "
Read more about it here: New Income tax rules to benefit those with two houses
As per Vineet Nanda, Director Sales & Marketing, Krisumi Corporation, "The Budget 2025-26 marks a pivotal moment for our economy—a decisive step towards revitalizing demand and strengthening the backbone of our nation, the middle class. This is a welcome relief that will not only stimulate spending but also bolster confidence across various sectors, with real estate poised to be a prime beneficiary. "
Read more about it here: New Income tax rules to benefit those with two houses
Budget 2025 Income Tax Live Updates: Big relief on TDS/TCS compliance as budget enhances many threshold limits
Income Tax Budget 2025 Live Updates: The threshold to collect tax at source (TCS) on remittances under the RBI's Liberalized Remittance Scheme (LRS) was increased from Rs 7 lakhs to Rs 10 lakh. Also, the budget announced the removal of TCS on remittances for education purposes, where such remittance is out of a loan taken from a specified financial institution.
Says Harsh Bhuta, Partner, Bhuta Shah and Co. LLP, "The proposed changes in TDS and TCS under the Finance Bill, 2025, mark a significant shift towards a more streamlined and taxpayer-friendly regime. The removal of TCS on educational remittances alleviates financial strain on parents and students, ensuring seamless fund transfers without the hassle of reclaiming tax credits. Increasing TDS thresholds for interest (doubled for senior citizens), dividends (doubled), and rent (enhanced from 2.4 L p.a to 6 L p.a.) simplifies compliance, benefiting small investors, senior citizens, and landlords by improving cash flow and reducing unnecessary deductions."
Says Harsh Bhuta, Partner, Bhuta Shah and Co. LLP, "The proposed changes in TDS and TCS under the Finance Bill, 2025, mark a significant shift towards a more streamlined and taxpayer-friendly regime. The removal of TCS on educational remittances alleviates financial strain on parents and students, ensuring seamless fund transfers without the hassle of reclaiming tax credits. Increasing TDS thresholds for interest (doubled for senior citizens), dividends (doubled), and rent (enhanced from 2.4 L p.a to 6 L p.a.) simplifies compliance, benefiting small investors, senior citizens, and landlords by improving cash flow and reducing unnecessary deductions."
Income Tax Budget 2025 Live Updates: How this Union Budget can help you increase your SIP investments?
Income Tax Budget 2025 Live Updates: With annual income of up to Rs 12,00,000 tax-free under the new tax regime, taxpayers will now have more in-hand disposable income to spend and invest. Says Deepak Ramaraju, Senior Fund Manager, Shriram AMC, "Though the budget did not add any negativity to the capital gains, the markets may remain buoyant for the medium term. Cutting personal taxes may lead to higher savings, which might result in increased SIP flows, potentially supporting the markets further. Capital market-related sectors such as AMCs and brokerage houses may expect higher retail participation."
Income Tax Budget 2025 Live Updates: Jewellery to get cheaper with duty reduction, move to benefit consumers
Budget 2025 Income Tax Live Updates: Union Budget 2025-26 has reduced the custom duty on jewelry from 25% to 20%. Says Colin Shah, MD, Kama Jewelry, "For a country like India, which is known for its high jewellery consumption, this will definitely boost the demand in the domestic market, especially in luxury. Similarly, slashing duty on platinum finding from 25% to 5% is yet another bold move that will prove beneficial for the entire gems and jewelry industry."
Read more about it here: How a duty reduction will impact jewellery buyers?
Read more about it here: How a duty reduction will impact jewellery buyers?
Income Tax Budget 2025 Live Updates: NPS Vatsalya gets tax benefits under Section 80ccd 1(b), benefits only applicable for the old tax regime
Income Tax Union Budget 2025: FM Nirmala Sitharaman announced the inclusion of NPS Vatsalya as an eligible investment under 80 ccd 1(b) in the old tax regime. As per Sriram Iyer, CEO, HDFC Pension, "This should accelerate the adoption of NPS Vatsalya, given the tax benefit that the parent will get by contributing to NPS Vatsalya, and kickstart the journey of building a long-term corpus for the child."
Read more about it here: NPS Vatsalya gets tax benefits under old tax regime
Read more about it here: NPS Vatsalya gets tax benefits under old tax regime
Income Tax Budget 2025 Live Updates: Income tax assessment rules to now apply to crypto income cases for upto 6 past AYs after search from Feb 1, 2025, move to impact crypto traders and investors
Budget 2025 Income Tax Live Updates: After today, crypto investors, traders, or those with any undisclosed income from VDAs (virtual digital assets) can be subject to assessment after the I-T department has already undertaken a search for up to 6 assessment years previous to the one in which the search was conducted.
Read more about it here: Have undisclosed income from VDAs like crypto? I-T department might be initiating assessment after search
Read more about it here: Have undisclosed income from VDAs like crypto? I-T department might be initiating assessment after search
Union Budget 2025 Income Tax Live: Budget 2025-26 removes TCS on education-related remittances, move to impact international students
Budget 2025 Income Tax Live Updates: In Union Budget 2025-26, FM Nirmala Sitharaman removed TCS on education-related remittances funded through loans and raised the TCS threshold under the Liberalized Remittance Scheme (LRS) from Rs 7 lakh to Rs 10 lakh. As per Nikhil Behl, Co-Founder & CEO, Stocks at INDmoney, "The announcements around easing TCS help simplify tax compliance for individuals. These changes not only make it easier for students and families managing educational expenses abroad but also offer greater flexibility for investors diversifying into global markets, including US stocks."
Read more about it here: How reducing TCS on education-related remittances will help students abroad
Read more about it here: How reducing TCS on education-related remittances will help students abroad
Income Tax Budget 2025 Live Updates: TDS limit for dividend income hiked in Budget 2025, see how it will impact you
Income Tax Budget 2025 Live Updates: In her budget speech, FM Nirmala Sitharaman proposed that no TDS will be deducted if the individual's dividend income does not exceed Rs 10,000. Read more about it here: How small shareholders will benefit from the TDS limit hike on dividend income?
Budget 2025 Income Tax Live Updates: No income tax on annual income of up to Rs 12,00,000 is a game changer, says CEO, FPSB India
Income Tax Budget 2025 Live Updates: The tax exemption limit raised to Rs 12 lakh ensures higher disposable income, directly benefiting household consumption, savings, and financial planning. For salaried taxpayers, this limit stands at Rs 12,75,000, with Rs 75,000 as a standard deduction existing under the new tax regime.
"The new tax structure will significantly reduce tax burdens, empowering individuals to invest in their future. Additionally, higher TDS for non-PAN holders ensures fairness in taxation, safeguarding compliant taxpayers. The NPS Vatsalaya tax benefits further encourage structured retirement planning, securing financial stability for individuals", adds Krishan Mishra, CEO, FPSB India
"The new tax structure will significantly reduce tax burdens, empowering individuals to invest in their future. Additionally, higher TDS for non-PAN holders ensures fairness in taxation, safeguarding compliant taxpayers. The NPS Vatsalaya tax benefits further encourage structured retirement planning, securing financial stability for individuals", adds Krishan Mishra, CEO, FPSB India
Budget 2025 Income Tax Live Updates: How has Budget 2025-26 made the Aam, Aadmi, and middle class happy?
Income Tax Budget 2025 Live Updates: These two major changes post the 2025 Budget announcements are set to have the most impact on the common man's pockets. As per Anuj Puri, Chairman, ANAROCK Group:
- Zero income tax for individuals earning up to Rs 12 lakh annually provides a major consumption boost. This move is also expected to strengthen demand for affordable housing. Additionally, the new income tax bill will retain nearly 50% of existing provisions while introducing personal tax reforms and rationalizing TDS and TCS regimes by streamlining rates and thresholds.
- Investors can now claim Nil valuation for two self-occupied properties instead of just one - a positive move for residential real estate investment. The simplified TDS on rent decreases the compliance burden and enhances liquidity for landlords and will positively impact the rental housing market, especially in metro cities. Previously, homeowners could claim only one self-occupied property as tax-free; now, they can claim two, thereby removing taxation on notional rental income from a second home.
Income Tax Budget 2025 Live Updates: Taxpayers can now claim tax benefits for two self-occupied houses after Budget 2025-26 announcement
Income Tax Budget 2025 Live Updates: In a significant move announced on February 1, Finance Minister Nirmala Sitharaman relaxed the conditions for tax relief on self-occupied properties in the 2025 Union Budget. Taxpayers can now claim tax benefits for two self-occupied houses, a major change from the previous rule that allowed relief for only one property.
"This reform significantly eases the tax burden for individuals who own and live in multiple properties, offering financial flexibility and promoting homeownership. By acknowledging the diverse housing needs of families, this decision not only provides greater tax relief but also encourages real estate investment. The move aligns with the government’s broader focus on financial empowerment and ease of living, strengthening the middle class while simplifying the tax structure", adds Adhil Shetty, CEO of Bankbazaar.com
"This reform significantly eases the tax burden for individuals who own and live in multiple properties, offering financial flexibility and promoting homeownership. By acknowledging the diverse housing needs of families, this decision not only provides greater tax relief but also encourages real estate investment. The move aligns with the government’s broader focus on financial empowerment and ease of living, strengthening the middle class while simplifying the tax structure", adds Adhil Shetty, CEO of Bankbazaar.com
Income Tax Budget 2025 Live Updates: Rs 70,000 is the savings for people with annual income of Rs 18,00,000 in the new tax regime. See how.
Income Tax Budget 2025 Live Updates: Here is how people earning Rs 18,00,000 can save up to Rs 80,000 in the new tax regime
Tax savings under the new regime (existing)
Tax savings under the new regime (proposed)
Total Savings (Difference) = Rs 70,000
Tax savings under the new regime (existing)
- Rs. 3 to Rs 7 lakh—Rs 20,000
- Rs 7 lakh to Rs 10 lakh—Rs 30,000
- Rs 10 lakh to Rs 12 lakh-- Rs 30,000
- Rs 12 lakh to Rs 15 lakh--Rs 60,000
- Rs 15 lakh to Rs 18 lakh—Rs 90, 000
Tax savings under the new regime (proposed)
- Rs 4 lakh to Rs 8 lakh: Rs 20,000
- Rs 8 lakh to Rs 12 lakh: Rs 40, 000
- Rs 12 lakh to Rs 16 lakh: Rs 60,000
- Rs 16 lakh to Rs 18 lakh: Rs 40, 000
Total Savings (Difference) = Rs 70,000
Income Tax Budget 2025 Live Updates: Despite no 87A rebate, people earning Rs 15 lakh will save Rs 35,000 in income tax. Here's how
Income Tax Budget 2025 Live Updates: People with an annual income of up to Rs 15,00,000 can still save Rs 35,000 in taxes, even without the Section 87A rebate available. See how
Tax savings under the new regime (existing)
Tax savings under the new regime (proposed)
Net Savings: Rs 35, 000
Tax savings under the new regime (existing)
- Rs. 3 to Rs 7 lakh: Rs 20,000
- Rs 7 lakh to Rs 10 lakh: Rs 30,000
- Rs 10 lakh to Rs 12 lakh: Rs 30, 000
- Rs 12 lakh to Rs 15 lakh: Rs 60, 000
Tax savings under the new regime (proposed)
- Rs 4 lakh to Rs 8 lakh: Rs 20,000
- Rs 8 lakh to Rs 12 lakh: Rs 40, 000
- Rs 12 lakh to Rs 15 lakh: Rs 45,000
Net Savings: Rs 35, 000
Income Tax Budget 2025 Live Updates: Income of up to Rs 12,00,000 for salaried taxpayers tax-free under the new tax regime is tax-free. See how
Budget 2025 Income Tax Live Updates: Post FM Nirmala Sitharaman's budget announcement, effective income of up to Rs 12,00,000 for salaried taxpayers is tax-free.
According to Manoranjan Sharma, Chief Economist at Infomerics Ratings, "As visualized by us and strongly stressed on multiple channels and in various mediums, the middle class has been given a welcome relief with no income tax up to Rs. 12 lakhs income. For salaried persons, it will go up to Rs. 12. 75 lakhs by factoring in standard deduction. In view of the ravages of the inflationary spiral and the shrinking disposable income, this enhanced income tax limit will be welcome across the development spectrum."
Read more here: How income up to Rs 12,00,000 is tax-free under the new regime
According to Manoranjan Sharma, Chief Economist at Infomerics Ratings, "As visualized by us and strongly stressed on multiple channels and in various mediums, the middle class has been given a welcome relief with no income tax up to Rs. 12 lakhs income. For salaried persons, it will go up to Rs. 12. 75 lakhs by factoring in standard deduction. In view of the ravages of the inflationary spiral and the shrinking disposable income, this enhanced income tax limit will be welcome across the development spectrum."
Read more here: How income up to Rs 12,00,000 is tax-free under the new regime
