New FY 2025: New income tax slabs, zero tax on income upto Rs 12 lakh, 9 other income tax laws effective from April 1, 2025

New Financial Year 2025, new tax laws: Today marks the beginning of the new financial year 2025-26. With the new year, a lot of changes are effective. This includes new income tax slabs and other new tax laws, such as tweaks in ULIPs taxation, no higher TDS for non-ITR filers etc. Know the eleven tax changes are effective from today.

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Is the government already reading your WhatsApp chats? Despite the government’s denial, here’s what experts are saying

The new income tax bill, effective from April 1, 2026, allows authorized officers to access locked physical and digital spaces to search for any undisclosed income. Government provisions under the DPDP Act, Telegraph Act, and IT Act empower them to access such sensitive data for national security and law enforcement purposes. Experts weigh in on how this will impact your fundamental right to privacy.

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Non-residents to get full income tax exemption on profits from OTC derivative contracts traded in IFSC due to this rule change

No income tax: Incomes arising out of non-resident's income on Over-the-Counter (OTC) derivatives will be fully exempt from Income Tax under Section 10 (4E) provided they are routed through overseas banking units or FPIs. ​Yeeshu Sehgal says: “It means Non-residents can now engage in transactions through FPIs operating in IFSCs & income earned from these derivative transactions will continue to be exempt from income tax."

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Unused LTA utilisation: Take a holiday and travel in India before March 31, 2025, to save income tax; know how to make this plan work

Leave Travel Allowance (LTA): Eligible employees who have an holiday on March 31, 2025 on account of Eid al-Fitr can make use of their unused LTA to plan a family short vacation and while at it save income tax under the old tax regime. For the present Block the last date to take LTA is Dec 31, 2025. Read below to know how to make this plan work.

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Equity tax-loss harvesting is a double-edged sword, make sure it works for you

Equity tax-loss harvesting: Many stock market investors use equity tax-loss harvesting as a tool to save income tax on the long-term capital gains from their equity investments. However, not many individuals know the risks associated with equity tax loss harvesting and what they could lose if the strategy is not used correctly.

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New income tax slabs from April 1, 2025: Know tax slabs, rates under new, old tax regime for FY 2025-26 (AY 2026-27)

With the start of the new financial year, many income tax changes will take effect; understanding the latest income tax slabs will help you select the tax regime that works best for you. Here are the income tax slabs under the new tax regime and old tax regime for FY 2025-26 (AY 2026-27), i.e., between April 1, 2025 and March 31, 2026.

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Despite no investment you can still get Section 80C income tax deduction if you invested in NSC

Save income tax: National Savings Certificate is a fixed-income investment scheme that's backed by the Government of India. But did you know that you can claim the interest component of NSC investment as Section 80C tax deduction under the old tax regime even if the NSC was invested in the past years. Read below to know more.

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Waiting till March 31, 2025, will be too late to save capital gains (LTCG) tax on equities this financial year

Save LTCG: Long term capital gains (LTCG) tax on equities is presently levied only if the gains is over Rs 1.25 lakh. However when we calculate, it shows taxpayers will save more LTCG tax on equities in FY 2024-25 than in FY 2023-24, but only upto a certain limit. Also March 31, 2025 is stock market holiday, so you need to use tax harvesting method by March 28, 2025.

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Income Tax: Can you claim HRA tax exemption for society maintenance charges also?

Usually, an employee's salary structure has HRA as one of its components. A salaried employee can claim tax exemption on HRA if he/she lives in a rented accommodation and has received HRA as part of his/her salary. However, if an employee is living in a society, then along with rent to the landlord, he/she has to pay maintenance charges also.

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GST Amnesty Scheme: Last few days left for payment of tax to apply for the scheme using SPL-02 form

GST Amnesty Scheme: You need to make the tax payment by March 31, 2025 to become eligible to apply for GST Amnesty Scheme by June 30, 2025. Sivakumar Ramjee says: ​"If a taxpayer fails to pay the outstanding tax by March 31, 2025, they will not be eligible to apply for the amnesty benefits, even if they attempt to submit the application before June 30, 2025."

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Income tax department to compare your last year ITR with current year’s ITR for any irregularities: How taxpayers will be impacted?

Compare last year's ITR with the current ITR: The income tax department will check and match your current income tax return filed with the previous year's ITR from next year onward. This is done to check for any inconsistencies and irregularities in the current year's ITR. The question arises: Is it good news or bad news for the taxpayers?

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Updated ITR deadline approaching: Avoid 50% additional tax by filing before March 31, 2025

Taxpayers are advised to file updated Income Tax Returns (ITR-U) promptly to avoid higher penalties. Filing by March 31, 2025, incurs a 25% additional tax plus interest, while filing later attracts a 50% additional tax.

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Tax saving on donation: You can get up to 50% deduction on your donation to Ayodhya Ram Mandir

Save income tax: If you want to save some income tax by reducing your total taxable income then Section 80G is one of the available options. CBDT notified Ayodhya Ram Mandir (Ram Janmabhoomi Teerth Kshetra) long back and experts say its very simple process. All you need to do is donate money for renovation purposes and then claim Section 80G tax deduction up to 50% of the amount.

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Salary rejig can save IT professional Gupta more tax in old tax regime versus new tax regime

Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.

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5-year Post Office Time Deposit or Tax-saving bank FDs: Which offers higher interest now?

Both Tax-Saving Fixed Deposits (FDs) from banks and the Post Office 5-Year Time Deposit provide secure investment options while offering tax benefits under Section 80C. Check if they differ in interest rates, taxation, and other specifics. Post Office TD offers a fixed 7.5% rate, while banks' rates range widely depending on the institution.

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Non residents getting income tax notices for claiming lower tax rate benefit under DTAA; Know how to resolve this situation

NRI taxation: Many non-resident Indians (NRIs) are receiving Income Tax notice under Section 143 (1) (a) of the Income Tax Act, 1961 because they have claimed a beneficial tax rate (lower or nil rate of tax) under Double Taxation Avoidance Agreement (DTAA) without filing Form 10F. Read below to know how can NRIs save themselves from this notice and what to do to close this tax notice.

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Missed advance tax deadline of March 15? Salaried employees can still avoid paying interest under Section 234C before March 31, here’s how

Advance tax: Salaried employees whose employers deduct TDS from salary can prevent Section 234C interest by requesting their employers to deduct additional TDS. This request can be made in the month of March also, provided the employer allows it. Legally it is possible for a salaried employee to inform the employer about any additional income and request their employer to deduct additional TDS.

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Lower tax on higher income in new tax regime from April 1: How your salary structure will decide if you get a big tax savings

The new tax regime will have new income tax slabs from FY 2025-26. Many salaried employees hesitated to switch to the new tax regime as they could save taxes on the investments and expenses made during the financial year. However, unlike the old tax regime, where the 30% tax rate starts at incomes above Rs 10 lakh, the 30% tax rate in the new tax regime will start from incomes above Rs 24 lakh.

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Submit LTA proofs before March 31, 2025, to avoid risking tax notice when claiming LTA tax exemption in income tax return

LTA exemption: A salaried employee opting for the old tax regime can claim an exemption for leave travel allowance under Section 10(5) of the Income Tax Act. LTA tax exemption cannot be claimed for foreign travel. There are income tax rules defined to claim the exemption on leave travel allowance.

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When to use Capital Gains Account Scheme to save income tax if you made long-term capital gains after selling land, property, equities, etc.?

Capital gains: Both Indian residents and NRIs can use Capital Gains Account Scheme (CGAS) to save paying capital gains tax on long-term capital gains (LTCG) on sale of land, property, equities, etc. Non-Resident Indians can use a Non-Resident Capital Gains Account Scheme (NRCGAS) to save long term capital gains (LTCG). Read below to know how NRIs and Indians can save capital gains tax through CGAS.

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Income tax offences: To avoid jail term when can you use income tax compounding provisions; CBDT issues new FAQ

Income tax: The Central board of Direct Taxes (CBDT) has released new FAQs on compounding of offences. Under these provisions if you have any pending income tax case and want to settle this then you may apply for compounding of offences and get the case dropped. This can also help you avoid jail term if the tax department has imposed any criminal case.

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Last minute tax saving: Here’s a list of tax saving FDs with high interest rates, lock in before March 31, 2025

Among the various tax-saving options available, a Tax-Saving Fixed Deposit (FD) stands out as a viable choice for last-minute tax saving. Tax saving is only available in the old tax regime and not applicable for taxpayers who opted for the new tax regime.

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Looking for last-minute tax-saving avenues before March 31st? Here’s how Section 80C can come to your rescue

With just over 10 days left to save on taxes, individuals can invest in instruments under Section 80C to reduce their taxable income by up to Rs 1.5 lakh. Options include provident funds, ELSS, NSC, tax-saver FDs, SCSS, and certain insurance premiums.

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Missed advance tax deadline? To avoid another interest charge you must pay off any remaining advance tax liability before March 31

Advance tax: Incase you have missed the advance tax deadline of March 15, 2025 for FY 2024-25 then don't worry at once pay it off before March 31, 2025. If you don't pay it then interest under Section 234C will be levied. Moreover if you pay the missed advance tax payment after March 31, 2025 then interest under Section 234B will be levied.

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New GST rule from April 1, 2025: ISD mandatory for input tax credit; not following will lead to ITC denial, minimum penalty of Rs 10,000

GST: The government has made the ISD mechanism mandatory, effective April 1, 2025. This means that the distribution of common input tax credit (ITC) must be carried out exclusively through the ISD mechanism.

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Should you stop investing in PPF, SSY, NPS when switching to the new tax regime?

For investors who primarily invested in Section 80C instruments to avail tax benefits, the shift to the new tax regime presents an important dilemma—should they continue with in PPF, SSY, NPS investments or discontinue them altogether?

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This tax-free perquisite value for salaried employee will see a positive change in New Tax Bill 2025

Tax free perquisite: Experts say due to a tweak in language of the new tax bill, 2025 now tax free perquisite may include employee commuting costs through reimbursements, or transportation through employer owned/operated vehicles, and many more. Shalini Jain, Tax Partner, EY India says, "This could potentially reduce administrative burdens and make it easier for both employers and employees to comply with tax regulations."

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Income tax saving: How paying health insurance premium can help you save tax under section 80D for FY 2024-25

Save tax: Section 80D offers you a tax deduction if you have paid health insurance premium for yourself, family, parents. However, this tax deduction is only available if you choose the old tax regime as it's not available in the new tax regime. Read below to know how you can claim up to Rs 75,000 as tax deduction under Section 80D.

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Advance tax deadline March 15, 2025: These salaried individuals don’t need to pay the advance tax unless circumstances changed; Know how

Advance tax deadline: March 15, 2025 is the advance tax deadline for FY 2024-25. However, if you are a salaried individual and your employer deducts TDS then you need not pay advance tax unless certain situations happen. Some examples of such situations is: you got capital gains income, or dividend income or you switched to another company in middle of year, many more. Read below for more.

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New TDS rules from April 1: Higher limit for tax deduction on FD interest, lottery winnings; check its impact

From April 1, 2025, the Union Budget 2025 introduces major TDS rule revisions, benefiting senior citizens with higher thresholds and similar benefits for general citizens, lottery winners, insurers, brokers, and investors in mutual funds and stocks. Check its impact

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Are you stuck with income tax cases? Here's how Section 158AB of Income Tax Act, 1961 can help you

Income Tax case: Section 158AB of the Income Tax Act, 1961, was introduced to reduce repetitive litigation by deferring certain appeals when an identical question of law is pending before the jurisdictional High Court or Supreme Court. This section helps in reducing unnecessary appeals – The tax authorities are not required to file appeals on the same issue multiple times, pending a final decision from higher courts.

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Didn’t file ITR in past? You may get tax notices from I-T department u/s 148A as it has identified high risk non-ITR filers

Tax notice: The Income Tax Department has identified the list of persons relating to AY 2019-20, 2020- 21 and 2021-22​ who did not file Income Tax Return despite having substantial income. These persons are being called: Non-filers with potential tax liabilities. "High-Risk Non-filer cases for relevant assessment year(s) as approvedby the Board have been made visible to the Assessing Officers (AO)". Read below to know your options.

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Pune-based Dinesh Parikh can save Rs 1.68 lakh tax by moving to new tax regime

Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.

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NSC vs bank FDs: Which is a better tax saving option?

NSC and tax-saving FDs both offer tax benefits and assured returns with a 5-year lock-in. NSC provides higher interest rates and tax advantages on reinvested interest.

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Will I have to pay tax if my parents gift me Rs 20 lakh?

Am I supposed to pay tax on a gift from my parents? Our panel of experts answers questions related to any aspect of personal finance. If you have a query, mail it to us right away.

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Tax harvesting to rescue equity investors: How loss from equities could help you save more tax

Save income tax by selling equities: The method is called tax harvesting and it requires you to sell the equity share or equity mutual fund on or before March 31 (March 28, 2025 for FY 2024-25 since March 31 is a trading holiday). There are two ways to do this- LTCG up to Rs 1.25 lakh and loss from equities carry forward for set-off. Read below to know how this works.

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Income tax savings via post office schemes: 5 small savings options that save tax under Section 80C

Post Office Savings Schemes are secure investment options in India, offering tax benefits under Section 80C of the Income Tax Act. The following Post Office Savings Schemes offer tax benefits under Section 80C of the Income Tax Act.

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Section 87A tax rebate on STCG income allowed by CIT (Appeals); Know how this legal battle was won

Section 87A: Tax rebate under Section 87A was not given on special rate income like STCG since July 5, 2024. Many taxpayers who could claim it were served with a tax demand notice. Now a Delhi based taxpayer who filed a case heard by Commissioner of Income Tax (Appeals) Mumbai won. The CIT (A) decided based on statistical reason this taxpayer should get Section 87A tax rebate on STCG.

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Your email and social media account can be accessed by income tax officer starting next financial year in these cases

Starting April 1, 2026, the income tax department will have the authority to access social media, emails, and other digital spaces to curb tax evasion. This has been granted to them under the new income tax bill. This will also include search and seizure powers over your assets and documents, which have raised major privacy concerns. Experts warn of challenges to fundamental privacy rights without judicial oversight and procedural safeguards.

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New rule for GST registration: Now biometric authentication in your home state is possible when you do GST registration in another state

GST registration: New advisory by Goods and Services Tax Network (GSTN) dated March 3, 2025 says additional facility allowing certain Promoters/Directors to complete their Biometric Authentication at any GSK in their Home State has been introduced. Read below to know more about how this new advisory about GST registration eases the pain point for GST registered taxpayers.

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Time to act for lower TDS deduction: Form 15E, Form 13 for FY 2024-25 will stop after March 15, 2025; file it now

Lower or nil TDS: The tax department has enabled online filing of Form 13 and Form 15E on the TRACES portal. These forms help all taxpayers including salaried individuals to apply for a lower or nil rate of TDS deduction. If the request is granted then the taxpayer will save the hassle of claiming a tax refund later on and also improve their cash flow situation.

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