- 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.