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5 Key Changes in the Income-Tax Bill, 2025 You Need to Know!

2025 tax slab
  • Simplified Tax Terminology: Assessment Year is now Tax Year, aligning with the financial year (April 1 – March 31).
  • Expanded Tax Scope: Includes digital transactions, crypto-assets, and electronic records under taxation.
  • New Business Taxation: Startups will have a flexible tax year based on their establishment date.
  • Taxpayer Benefits: Retains ₹50,000 standard deduction for salaried individuals and allows full pension commutation deduction for government employees.
  • Updated Income Tax Slabs:
    • Up to ₹4 lakh – No tax
    • ₹4 lakh to ₹8 lakh – 5%
    • ₹8 lakh to ₹12 lakh – 10%
    • ₹12 lakh to ₹16 lakh – 15%
    • ₹16 lakh to ₹20 lakh – 20%
    • ₹20 lakh to ₹24 lakh – 25%
    • Above ₹24 lakh – 30%

Effective Date: April 1, 2026, if passed.

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