{"id":29090,"date":"2025-04-01T23:01:12","date_gmt":"2025-04-01T17:31:12","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=29090"},"modified":"2025-08-20T18:05:17","modified_gmt":"2025-08-20T12:35:17","slug":"major-new-income-tax-rules-highlights-changes-from-april-1","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/major-new-income-tax-rules-highlights-changes-from-april-1\/","title":{"rendered":"Major New Income Tax Rules Highlights changes from April 1"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69fccf00b877d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69fccf00b877d\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/major-new-income-tax-rules-highlights-changes-from-april-1\/#Major_New_Income_Tax_Rules_Highlights_changes_from_April_1\" title=\"Major New Income Tax Rules Highlights changes from April 1\">Major New Income Tax Rules Highlights changes from April 1<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/major-new-income-tax-rules-highlights-changes-from-april-1\/#Revised_Income_Tax_Slabs_and_Increased_Exemption_Limits\" title=\"Revised Income Tax Slabs and Increased Exemption Limits\">Revised Income Tax Slabs and Increased Exemption Limits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/major-new-income-tax-rules-highlights-changes-from-april-1\/#Revised_Tax_Slabs_For_incomes_exceeding_INR_1275_lakh_the_tax_slabs_have_been_adjusted_as_follows_%E2%80%8B\" title=\"Revised Tax Slabs: For incomes exceeding INR 12.75 lakh, the tax slabs have been adjusted as follows:\u200b\">Revised Tax Slabs: For incomes exceeding INR 12.75 lakh, the tax slabs have been adjusted as follows:\u200b<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/major-new-income-tax-rules-highlights-changes-from-april-1\/#New_Income_Tax_Regime_as_Default\" title=\"New Income Tax Regime as Default\">New Income Tax Regime as Default<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/major-new-income-tax-rules-highlights-changes-from-april-1\/#Increased_Rebate_Us_87A\" title=\"Increased Rebate U\/s 87A\">Increased Rebate U\/s 87A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/major-new-income-tax-rules-highlights-changes-from-april-1\/#GST_E-Invoicing_Compliance\" title=\"GST E-Invoicing Compliance\">GST E-Invoicing Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/major-new-income-tax-rules-highlights-changes-from-april-1\/#Relief_for_Homeowners_with_Multiple_Properties\" title=\"Relief for Homeowners with Multiple Properties\">Relief for Homeowners with Multiple Properties<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/major-new-income-tax-rules-highlights-changes-from-april-1\/#Increased_TDS_Threshold_on_Dividend_Income\" title=\"Increased TDS Threshold on Dividend Income\">Increased TDS Threshold on Dividend Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/major-new-income-tax-rules-highlights-changes-from-april-1\/#Tax-Free_Employer-Provided_Medical_Treatment_Abroad\" title=\"Tax-Free Employer-Provided Medical Treatment Abroad\">Tax-Free Employer-Provided Medical Treatment Abroad<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/major-new-income-tax-rules-highlights-changes-from-april-1\/#Stricter_Reporting_for_High-Value_Digital_Transactions\" title=\"Stricter Reporting for High-Value Digital Transactions\">Stricter Reporting for High-Value Digital Transactions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/major-new-income-tax-rules-highlights-changes-from-april-1\/#Mandatory_Dematerialization_of_Physical_Share_Certificates\" title=\"Mandatory Dematerialization of Physical Share Certificates\">Mandatory Dematerialization of Physical Share Certificates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/major-new-income-tax-rules-highlights-changes-from-april-1\/#Enhanced_Support_for_Micro_and_Small_Enterprises\" title=\"Enhanced Support for Micro and Small Enterprises\">Enhanced Support for Micro and Small Enterprises<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/major-new-income-tax-rules-highlights-changes-from-april-1\/#Pensions_Loans\" title=\"Pensions &amp; Loans\">Pensions &amp; Loans<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-29091\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/Change-1-April-2025.jpg\" alt=\"Change 1 April 2025\" width=\"1020\" height=\"332\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/Change-1-April-2025.jpg 670w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/Change-1-April-2025-300x98.jpg 300w\" sizes=\"(max-width: 1020px) 100vw, 1020px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Major_New_Income_Tax_Rules_Highlights_changes_from_April_1\"><\/span><span style=\"color: #000080;\"><strong>Major New Income Tax Rules Highlights changes from April 1<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As the new financial year begins on April 1, 2025, several significant financial and tax regulations have come into effect in India, impacting income, spending, and compliance requirements. These below changes reflect the government&#8217;s efforts to simplify tax structures, enhance compliance, and provide relief to taxpayers. It&#8217;s advisable to consult with a tax professional to understand how these changes may specifically impact your financial situation. Here&#8217;s an overview of the summary of the key financial and tax changes effective from April 1, 2025:\u200b<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Revised_Income_Tax_Slabs_and_Increased_Exemption_Limits\"><\/span><span style=\"color: #000080;\">Revised Income Tax Slabs and Increased Exemption Limits<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Higher Tax Exemption Threshold: The basic exemption limit has been raised, allowing individuals with an annual income up to INR 12 lakh to be exempt from income tax. Additionally, a standard deduction of INR 75,000 has been introduced, effectively making income up to INR 12.75 lakh tax-free under the new tax regime. \u200b Income up to INR 12.75 lakh is now tax-free under the new tax regime (INR 12 lakh exemption + INR 75,000 standard deduction).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Revised_Tax_Slabs_For_incomes_exceeding_INR_1275_lakh_the_tax_slabs_have_been_adjusted_as_follows_%E2%80%8B\"><\/span><span style=\"color: #000080;\">Revised Tax Slabs: For incomes exceeding INR 12.75 lakh, the tax slabs have been adjusted as follows:\u200b<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Up to INR 4 lakh: Nil\u200b<\/li>\n<li>INR 4 lakh to INR 8 lakh:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 5%\u200b<\/li>\n<li>Rs. 8 lakh to INR 12 lakh: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 10%<\/li>\n<li>INR 12 lakh to INR 16 lakh: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 15%\u200b<\/li>\n<li>Rs. 16 lakh to INR 20 lakh: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 20%\u200b<\/li>\n<li>INR 20 lakh to INR 24 lakh: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 25%\u200b<\/li>\n<li>Above INR 24 lakh: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 30%\u200b<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"New_Income_Tax_Regime_as_Default\"><\/span><span style=\"color: #000080;\"><strong>New Income Tax Regime as Default<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The new tax regime is now the default option for taxpayers. Individuals wishing to continue with the old tax regime must explicitly opt for it when filing their income tax returns. \u200b<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Increased_Rebate_Us_87A\"><\/span><span style=\"color: #000080;\">Increased Rebate U\/s 87A<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The rebate u\/s 87A has been increased to INR 60,000 from the previous limit of INR 25,000, providing additional relief to taxpayers under the new tax regime.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"GST_E-Invoicing_Compliance\"><\/span><span style=\"color: #000080;\">GST E-Invoicing Compliance<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Businesses with an AATO of INR 10 crore and above are now required to report their e-invoices within 30 days of invoice generation on the Invoice Registration Portal. Late submissions will be automatically rejected, potentially leading to penalties and affecting ITC claims. \u200b GST portal security enhanced with mandatory multi-factor authentication (MFA). E-way bills can only be generated for documents less than 180 days old The 180-day limit on e-way bill document issuance could create compliance challenges for businesses with longer invoice cycles.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Relief_for_Homeowners_with_Multiple_Properties\"><\/span><span style=\"color: #000080;\">Relief for Homeowners with Multiple Properties<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Taxpayers can now claim tax exemption for two self-occupied house properties. Previously, the annual value of a second property was considered taxable unless specific conditions were met. This change provides relief to individuals owning multiple properties. \u200b<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Increased_TDS_Threshold_on_Dividend_Income\"><\/span><span style=\"color: #000080;\">Increased TDS Threshold on Dividend Income<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The threshold limit for TDS on dividend income has been raised from INR 5,000 to INR 10,000. This means TDS will only be deducted when dividend income exceeds INR 10,000, allowing investors to retain more income from dividends. \u200bHigher TDS exemption for senior citizens: Interest income up to INR 1 lakh is now exempt from TDS. PAN-Aadhaar linking mandatory: Non-linking by March 31, 2025, will result in higher TDS and loss of credit in Form 26AS.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Tax-Free_Employer-Provided_Medical_Treatment_Abroad\"><\/span><span style=\"color: #000080;\"><strong>Tax-Free Employer-Provided Medical Treatment Abroad<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Expenditures incurred by employers for an employee&#8217;s medical treatment abroad, including travel expenses for the employee and a family member, are now considered tax-free perquisites. This provides significant tax relief for employees receiving medical treatment overseas.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Stricter_Reporting_for_High-Value_Digital_Transactions\"><\/span><span style=\"color: #000080;\"><strong>Stricter Reporting for High-Value Digital Transactions<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>High-value transactions made via UPI and credit cards are now subject to stricter reporting under the SFT rules. UPI IDs to be deactivated for security reasons. Positive Pay System for cheques INR 50,000+ to prevent fraud. Taxpayers should be cautious of large digital payments, as they may be scrutinized for TDS or TCS purposes. Inactive Minimum balance requirements updated for major banks like SBI, PNB, Canara Bank.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mandatory_Dematerialization_of_Physical_Share_Certificates\"><\/span><span style=\"color: #000080;\"><strong>Mandatory Dematerialization of Physical Share Certificates<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Physical share transfers are no longer permitted unless the shares are converted to dematerialized (demat) form by the specified due date. Shareholders must ensure their physical shares are dematerialized to facilitate seamless transfers. \u200b KYC mandatory for mutual funds and demat accounts (Nominee details must be re-verified).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Enhanced_Support_for_Micro_and_Small_Enterprises\"><\/span><span style=\"color: #000080;\">Enhanced Support for Micro and Small Enterprises<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Payments to MSEs beyond 45 days will not be allowed as deductions under Income Tax. This measure aims to ensure timely payments to MSEs and improve their financial health. \u200b<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Pensions_Loans\"><\/span><span style=\"color: #000080;\">Pensions &amp; Loans<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\"><strong>New Unified Pension Scheme:<\/strong><\/span> Govt employees with 25+ years of service will get 50% of their last 12 months&#8217; average basic salary as pension.<\/p>\n<p><span style=\"color: #000080;\"><strong>Priority Sector Lending home loan limits increased:<\/strong><\/span> INR 50 lakh for metro cities, INR 45 lakh for Tier-2, INR 35 lakh for smaller cities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Major New Income Tax Rules Highlights changes from April 1 As the new financial year begins on April 1, 2025, several significant financial and tax regulations have come into effect in India, impacting income, spending, and compliance requirements. These below changes reflect the government&#8217;s efforts to simplify tax structures, enhance compliance, and provide relief to &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[150],"tags":[10303],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29090"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=29090"}],"version-history":[{"count":2,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29090\/revisions"}],"predecessor-version":[{"id":29093,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29090\/revisions\/29093"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=29090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=29090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=29090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}