Changes in income tax rules.
The year 2025 has been special in many ways for income tax payers., This year, not only the rules related to tax changed, but also an attempt was made to simplify the process of filing returns. And the objective of these changes was clear, to simplify the tax system, reduce mistakes and provide relief to honest taxpayers. These changes will also impact your tax planning in the coming years.
Big relief from increasing tax free income limit
The biggest change in Budget 2025 was made regarding tax free income. Due to increase in tax rebate under the new tax system, now even high earning salaried people will not have to pay tax. After availing the benefit of standard deduction, income up to a certain limit becomes completely tax free. Middle class and employed people have directly benefited from this.
ITR Changes in filing process
Changes were made in the deadlines and processes related to income tax returns in 2025, the deadlines were extended several times, so that taxpayers get a chance to file returns correctly. Along with this, online rectification facility was provided for some tax orders, which reduced office visits and speeded up the work.
TDS And TCS rules become easier
2025 brought relief for small taxpayers and senior citizens. On bank interest, rent and some payments TDS The limit was increased. This reduced the problem of frequent tax deductions and also reduced the hassle of refunds. Especially the elderly and small business owners benefited greatly from this.
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New on payments to partners TDS Rule
Firm from 2025 and LLP New on salary, bonus, commission or interest received by partners in TDS The rule was implemented. Its purpose is to increase tax transparency. Although this has increased compliance, in the long run it will make the tax system cleaner and more reliable.
More time to file updated returns
Now taxpayers will get more time to correct their mistakes. The deadline for filing updated returns has been extended, so that people can declare the income of previous years correctly. This will reduce tax disputes and people will get a chance to correct their mistakes without fear.