Income Tax Act 2025: A New Era#
The Income Tax Act, 2025 replaces the 1961 Act effective from AY 2026-27.
Key Changes#
1. Simplified Filing#
- Single-page ITR for simple taxpayers
- Pre-filled data from AIS
- Auto-reconciliation
2. New Tax Slabs (New Regime)#
| Income | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3-7 lakh | 10% |
| ₹7-10 lakh | 15% |
| ₹10-12 lakh | 20% |
| ₹12-15 lakh | 25% |
| Above ₹15 lakh | 30% |
3. Standard Deduction#
- Increased to ₹75,000 for all
4. Digital Infrastructure#
- Real-time tax tracking
- AI-powered assessments
- Instant refund processing
What Changed?#
- Section numbers restructured
- definitions simplified
- Compliance eased
Transition#
-Old returns can still be revised
- No retrospective changes
- Smooth migration