INCOME TAX NEW RULES 2025 ACT

[Vikrant sharma]

The Income Tax Act, 1961, is HISTORY NOW!!

The Income Tax Bill 2025 brings clarity, simplifies compliance, and encourages digital adoption.

IMPORTANT HIGHLIGHTS:-

1️⃣No More AY & PY Confusion! – Say hello to "Tax Year" instead of the complicated Assessment Year & Previous Year system!

2️⃣ Higher Limits for Businesses & Professionals

📈 44AD (Business): ₹2 Cr ➡ ₹3 Cr

📈 44ADA (Professionals): ₹50 Lakh ➡ ₹75 Lakh

3️⃣ Housing Loan & Rental Income Updates

🏡 Interest on Housing Loan – Can only be set off against rental income

🏡 Self-Occupied Property – No deduction for housing loan interest

🏡 Loss from Rental Property – Can be adjusted against other rental income but not carried forward

4️⃣ Exemptions & Allowances Tweaked

💼 HRA (House Rent Allowance) – No exemption allowed!

✈️ Travel & Daily Allowance – Still allowed for official tours/trips

📉 Standard Deduction: ₹75,000

🏦 Employer Contributions (Deduction Eligibility) –

🔹 NPS: Up to 14% of basic salary

🔹 EPF: Up to 12% of basic salary

5️⃣ Tax Filing Due Dates Extended

🗓️ Tax Audit Filing: Sept 30 ➡ Oct 31

🗓️ ITR Filing: Oct 31 ➡ Nov 30

6️⃣ No Change in Capital Gains Tax – LTCG & STCG rates remain unchanged!

7️⃣ Digital Push for MSMEs – Businesses with up to ₹10 Cr turnover via digital transactions get audit relief!

8️⃣ CA Exclusive Audit Rights – Despite speculations, only Chartered Accountants can conduct tax audits. Relief for CAs!

9️⃣ More Sections, Less Complexity – The new law has 536 sections, 23 chapters, and 16 schedules – structured better for easier interpretation!

🔟 Fewer Pages, More Clarity – From 823 pages (old Act) ➡ 622 pages (new Bill). More concise, yet comprehensive!

Stay tuned for further updates!