Here are the 10 Key Changes in the Revised Income-Tax Bill 2025
1. Higher Tax Rebate Limit
The income level to get a tax rebate will go up from ₹7 lakh to ₹12 lakh, and the rebate amount will increase from ₹25,000 to ₹60,000. This means more people will pay less tax.
2. No Penalties for Honest Mistakes
If taxpayers make genuine mistakes, they won’t have to pay fines. This encourages people to file taxes honestly without fear.
3. No Extra Tax on Empty Properties
The plan to increase tax on vacant (empty) properties has been dropped. Current rules will stay as they are.
4. No New Search Powers for Tax Officials
Tax officials won’t get extra powers to search or seize property. This protects taxpayers’ rights.
5. Clearer Rules
Confusing parts of the law have been fixed, making the tax rules easier to understand.
6. Higher Standard Deduction
The standard deduction (the amount you can subtract from your income before tax) will go up from ₹50,000 to ₹75,000, reducing the taxable income.
7. Better Tax Slabs
Tax rates and slabs have been adjusted to give more relief to taxpayers.
8. More Time to File Tax Returns
The deadline to update or correct tax returns has been extended from 2 years to 4 years.
9. Tax-Free Withdrawals from National Savings Scheme
Money withdrawn from the National Savings Scheme after August 29, 2024, won’t be taxed.
10. Angel Tax Removed
The tax on investments received by startups when they sell shares at above market value has been removed. This helps new companies grow.
Source: Times Now
Which reform will benefit you the most?
- Higher rebate limit
- More time to file returns
- Angel tax removal