Archive · 27 May 2025
New Income Tax Regime Changes: Tax Slabs and Bill Updates
The government is updating income tax rules.
There's a new system starting in April 2025 with new tax rates.
The new system is simpler.
A big change is that people earning up to Rs 12 lakh won't have to pay any tax.
Also, there's a new simplified Income Tax Bill being created.
The new system is designed to be simpler, without certain tax breaks of the old system, like for investments.
But the standard deduction amount has increased.
The new income tax regime has new tax slabs effective FY 2025-26.
The basic tax exemption limit is changed.
Taxpayers with a taxable income up to Rs 12 lakh will pay zero tax.
The new tax regime is the default regime.
The New Income Tax Bill is being proposed, updating the Income Tax Act 1961.
- Who
- Taxpayers
- What
- Changes in income tax, including new tax slabs, a higher standard deduction, and the New Income Tax Bill.
- When
- FY 2025-26
- Where
- India
- Why
- To simplify tax filing and update the Income Tax Act.
Old Tax Regime
New Tax Regime
Deductions and Exemptions
Old Tax Regime
Does not offer popular exemptions like Section 80C.
New Tax Regime
Offers popular tax exemptions and deductions.
- New Tax Regime Effective Date
- FY 2025-26
- Zero Tax Income Threshold
- Up to Rs 12 lakh
- New Tax Regime Aim
- Simplified Tax Filing
- Standard Deduction (New Regime)
- Rs 75,000
- Standard Deduction (Old Regime)
- Rs 50,000
