Effective from 1st April 2025, salaried individuals earning up to ₹12.75 lakh can pay zero income tax under the new tax regime. Thus, the new income tax regime 2025 continues to simplify the taxation guidelines while offering lower slab rates and minimal exemptions. Currently, the new income tax regime under Section 115BAC is the default tax system in India. It offers concessional tax rates across income slabs while removing most deductions and exemptions, thereby making tax compliance smooth and more transparent.

Insurance plans assures financial security and simulatenously reduce your annual tax burden. Tax benefits of insurance plans under Sections 80C, Section 80D, and Section 10(10D) under the Income Tax Act, 1961, have been broadly reorganised in the Income Tax Act, 2025, under Section 123, Section 126, and Schedule II, respectively.

Section 134 of the Income Tax Act, 2025, is an updated version of Section 80GG of the Income Tax Act, 1961. It allows individuals to claim tax deduction on the rent paid for availing residential accommodation, if they do not receive House Rent Allowance (HRA) as part of their salary. Although the major tax provisions remain the same, Section 134 features easy to understand language to help improve comprehension and compliance of applicable income tax rules.

Section 16A of the Income Tax Act, 1961, deals with Tax Deducted at Source (TDS) on payments made to non-resident individuals (NRIs) or foreign companies for income earned in India. All the entities or individuals responsible for making such a payment should deduct TDS at the applicable rate before remitting the amount. Taxpayers should understand Section 16A before filing their income tax return to manage income streams involving cross-border payments.

Section 44AD of the Income Tax Act, 1961, is one of the simplest tax provisions introduced by the Government of India, allowing small businesses in India to deduct 8% of their turnover as income, or 6% if payments are received digitally. The key advantage of presumptive taxation scheme under Section 44AD is that it simplifies the tax filing process for eligible small businesses that can significantly reduce the time and effort involved.