{"id":31724,"date":"2026-04-20T00:52:44","date_gmt":"2026-04-19T19:22:44","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=31724"},"modified":"2026-04-20T00:59:59","modified_gmt":"2026-04-19T19:29:59","slug":"changes-in-perquisites-allowances-in-income-tax-act-2025","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/changes-in-perquisites-allowances-in-income-tax-act-2025\/","title":{"rendered":"Key Changes in Perquisites &#038; Allowances in I Tax Act, 2025"},"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-69e55bcee1165\" 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-69e55bcee1165\"  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\/changes-in-perquisites-allowances-in-income-tax-act-2025\/#Key_Changes_in_Perquisites_Allowances_in_Income_Tax_Act_2025\" title=\"Key Changes in Perquisites &amp; Allowances in Income Tax Act, 2025\">Key Changes in Perquisites &amp; Allowances in Income Tax Act, 2025<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/changes-in-perquisites-allowances-in-income-tax-act-2025\/#Motor_Car_Perquisite_Major_Increase_in_Valuation_Limits\" title=\"Motor Car Perquisite: Major Increase in Valuation Limits\">Motor Car Perquisite: Major Increase in Valuation Limits<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/changes-in-perquisites-allowances-in-income-tax-act-2025\/#Car_Owned_Hired_by_Employer\" title=\"Car Owned \/ Hired by Employer\">Car Owned \/ Hired by Employer<\/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\/changes-in-perquisites-allowances-in-income-tax-act-2025\/#Car_Owned_by_Employee_Employer_Reimburses_Expenses\" title=\"Car Owned by Employee (Employer Reimburses Expenses)\">Car Owned by Employee (Employer Reimburses Expenses)<\/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\/changes-in-perquisites-allowances-in-income-tax-act-2025\/#Major_Changes_in_Other_Perquisites\" title=\"Major Changes in Other Perquisites\">Major Changes in Other Perquisites<\/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\/changes-in-perquisites-allowances-in-income-tax-act-2025\/#New_Mandatory_Conditions_House_Rent_Allowance_HRA\" title=\"New Mandatory Conditions House Rent Allowance (HRA) : \">New Mandatory Conditions House Rent Allowance (HRA) : <\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/changes-in-perquisites-allowances-in-income-tax-act-2025\/#Structural_Changes_in_the_Income_Tax_Act_2025\" title=\"Structural Changes in the Income Tax Act 2025\">Structural Changes in the Income Tax Act 2025<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/changes-in-perquisites-allowances-in-income-tax-act-2025\/#Comparison_Income_Tax_Act_1961_vs_Income_Tax_Act_2025\" title=\"Comparison: Income Tax Act 1961 vs. Income Tax Act 2025: \">Comparison: Income Tax Act 1961 vs. Income Tax Act 2025: <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/changes-in-perquisites-allowances-in-income-tax-act-2025\/#Chapters_of_the_New_Income%E2%80%91tax_Act_2025\" title=\"Chapters of the New Income\u2011tax Act, 2025\">Chapters of the New Income\u2011tax Act, 2025<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/changes-in-perquisites-allowances-in-income-tax-act-2025\/#New_Tax_Regime_Slab_Rates_Section_202\" title=\"New Tax Regime Slab Rates (Section 202)\">New Tax Regime Slab Rates (Section 202)<\/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\/changes-in-perquisites-allowances-in-income-tax-act-2025\/#_Old_Tax_Regime_Slab_Rates_Optional\" title=\"\u00a0Old Tax Regime Slab Rates (Optional)\">\u00a0Old Tax Regime Slab Rates (Optional)<\/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\/changes-in-perquisites-allowances-in-income-tax-act-2025\/#Deductions_Under_the_Income_Tax_Act_2025\" title=\"Deductions Under the Income Tax Act, 2025\">Deductions Under the Income Tax Act, 2025<\/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\/changes-in-perquisites-allowances-in-income-tax-act-2025\/#TDS_Under_the_New_Income_Tax_Act_2025\" title=\"TDS Under the New Income Tax Act, 2025 :\">TDS Under the New Income Tax Act, 2025 :<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/changes-in-perquisites-allowances-in-income-tax-act-2025\/#TDS_Major_Changes_at_a_Glance\" title=\"TDS Major Changes at a Glance\">TDS Major Changes at a Glance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/changes-in-perquisites-allowances-in-income-tax-act-2025\/#Impact_of_the_Income_Tax_Act_2025_on_Different_Taxpayers\" title=\"Impact of the Income Tax Act 2025 on Different Taxpayers \">Impact of the Income Tax Act 2025 on Different Taxpayers <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/changes-in-perquisites-allowances-in-income-tax-act-2025\/#Income_Tax_Act_2025_vs_1961_%E2%80%94_Major_Differences\" title=\"Income Tax Act 2025 vs 1961 \u2014 Major Differences\">Income Tax Act 2025 vs 1961 \u2014 Major Differences<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/changes-in-perquisites-allowances-in-income-tax-act-2025\/#Summary_of_Changes_in_perquisites_allowances_in_Income_Tax_Act_2025\" title=\"Summary of Changes in perquisites &amp; allowances in Income Tax Act, 2025\">Summary of Changes in perquisites &amp; allowances in Income Tax Act, 2025<\/a><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-31730\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/Key-.png\" alt=\"\" width=\"1051\" height=\"570\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/Key-.png 411w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/Key--300x163.png 300w\" sizes=\"(max-width: 1051px) 100vw, 1051px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Key_Changes_in_Perquisites_Allowances_in_Income_Tax_Act_2025\"><\/span><span style=\"color: #000080;\"><strong>Key Changes in Perquisites &amp; Allowances in Income Tax Act, 2025<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"2608\" data-end=\"2734\">The Income Tax\u00a0Act, 2025, introduced by the <span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">Income Tax Department<\/span><\/span> and effective from 1 April 2026, brings structural clarity and rationalisation in the taxation of perquisites and allowances under the head <em data-start=\"378\" data-end=\"391\">\u201cSalaries.\u201d . <\/em>The changes in perquisites and allowances under the Income Tax Act, 2025, are evolutionary rather than revolutionary. They focus on clarity over complexity, structure over fragmentation, and compliance ease over interpretational challenges.\u00a0While the fundamental taxability principles remain largely unchanged, the presentation, classification, and compliance approach have been significantly improved.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Motor_Car_Perquisite_Major_Increase_in_Valuation_Limits\"><\/span><span style=\"color: #000080;\"><strong>Motor Car Perquisite: Major Increase in Valuation Limits<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-31725\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/TaxTattva-Update-No.-11_page-0001-1.jpg\" alt=\"Changes in Perquisites &amp; Allowances in Income Tax Act, 2025\" width=\"1107\" height=\"1043\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/TaxTattva-Update-No.-11_page-0001-1.jpg 1107w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/TaxTattva-Update-No.-11_page-0001-1-300x283.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/TaxTattva-Update-No.-11_page-0001-1-1024x965.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/TaxTattva-Update-No.-11_page-0001-1-768x724.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/TaxTattva-Update-No.-11_page-0001-1-800x754.jpg 800w\" sizes=\"(max-width: 1107px) 100vw, 1107px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Car_Owned_Hired_by_Employer\"><\/span><span style=\"color: #000080;\"><strong>Car Owned \/ Hired by Employer<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 638px;\" width=\"911\">\n<tbody>\n<tr>\n<td><strong>Usage Type<\/strong><\/td>\n<td width=\"248\"><strong>Income Tax Act, 1961<\/strong><\/td>\n<td width=\"144\"><strong>Income Tax Act, 2025<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Wholly for official duties<\/td>\n<td width=\"248\">Nil<\/td>\n<td width=\"144\">No change<\/td>\n<\/tr>\n<tr>\n<td>Exclusively for personal use<\/td>\n<td width=\"248\">Actual expenses + driver + wear &amp; tear \u2013 employee recovery<\/td>\n<td width=\"144\">No change<\/td>\n<\/tr>\n<tr>\n<td>Partly official + partly personal<\/td>\n<td width=\"248\"><\/td>\n<td width=\"144\"><\/td>\n<\/tr>\n<tr>\n<td>\u2022 Engine \u2264 1.6L (expenses borne by employer)<\/td>\n<td width=\"248\">INR 1,800 p.m.<\/td>\n<td width=\"144\">INR 5,000 p.m.<\/td>\n<\/tr>\n<tr>\n<td>\u2022 Engine &gt; 1.6L (expenses borne by employer)<\/td>\n<td width=\"248\">INR 2,400 p.m.<\/td>\n<td width=\"144\">INR 7,000 p.m.<\/td>\n<\/tr>\n<tr>\n<td>\u2022 Engine \u2264 1.6L (expenses borne by employee)<\/td>\n<td width=\"248\">INR 600 p.m.<\/td>\n<td width=\"144\">INR 2,000 p.m.<\/td>\n<\/tr>\n<tr>\n<td>\u2022 Engine &gt; 1.6L (expenses borne by employee)<\/td>\n<td width=\"248\">INR 900 p.m.<\/td>\n<td width=\"144\">INR 3,000 p.m.<\/td>\n<\/tr>\n<tr>\n<td>\u2022 Chauffeur perquisite (additional)<\/td>\n<td width=\"248\">INR 900 p.m.<\/td>\n<td width=\"144\">INR 3,000 p.m.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Car_Owned_by_Employee_Employer_Reimburses_Expenses\"><\/span><span style=\"color: #000080;\"><strong>Car Owned by Employee (Employer Reimburses Expenses)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 407px;\" width=\"927\">\n<tbody>\n<tr>\n<td><strong>Usage<\/strong><\/td>\n<td width=\"221\"><strong>Income Tax Act, 1961<\/strong><\/td>\n<td width=\"237\"><strong>Income Tax Act, 2025<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Wholly official use<\/td>\n<td width=\"221\">Nil<\/td>\n<td width=\"237\">Nil<\/td>\n<\/tr>\n<tr>\n<td>Partly official + partly personal<\/td>\n<td width=\"221\"><\/td>\n<td width=\"237\"><\/td>\n<\/tr>\n<tr>\n<td>\u2022 Engine \u2264 1.6L<\/td>\n<td width=\"221\">Reimbursement \u2013 INR 1,800 p.m.<\/td>\n<td width=\"237\">Reimbursement \u2013 INR 5,000 p.m.<\/td>\n<\/tr>\n<tr>\n<td>\u2022 Engine &gt; 1.6L<\/td>\n<td width=\"221\">Reimbursement \u2013 INR 2,400 p.m.<\/td>\n<td width=\"237\">Reimbursement \u2013 INR 7,000 p.m.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Major_Changes_in_Other_Perquisites\"><\/span><span style=\"color: #000080;\"><strong>M<\/strong><strong>ajor Changes in Other Perquisites<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-31726\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/TaxTattva-Update-No.-11_page-0002-2.jpg\" alt=\"Major Changes in Other Perquisites\" width=\"1134\" height=\"721\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/TaxTattva-Update-No.-11_page-0002-2.jpg 1134w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/TaxTattva-Update-No.-11_page-0002-2-300x191.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/TaxTattva-Update-No.-11_page-0002-2-1024x651.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/TaxTattva-Update-No.-11_page-0002-2-768x488.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/TaxTattva-Update-No.-11_page-0002-2-800x509.jpg 800w\" sizes=\"(max-width: 1134px) 100vw, 1134px\" \/><\/p>\n<table style=\"height: 378px;\" width=\"910\">\n<tbody>\n<tr>\n<td><strong>Particular<\/strong><\/td>\n<td><strong>Income Tax Act, 1961<\/strong><\/td>\n<td><strong>Income Tax Act, 2025<\/strong><\/td>\n<td><strong>Change<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Interest\u2011free \/ concessional loan<\/td>\n<td>Taxable if loan &gt; INR 20,000<\/td>\n<td>Taxable if loan &gt; INR 2,00,000<\/td>\n<td>10x threshold increase<\/td>\n<\/tr>\n<tr>\n<td>Gift \/ Token \/ Voucher perquisite<\/td>\n<td>Exemption up to INR 5,000<\/td>\n<td>Exemption up to INR 15,000<\/td>\n<td>3x increase<\/td>\n<\/tr>\n<tr>\n<td>Overseas medical treatment perquisite<\/td>\n<td>Exemption up to INR 2,00,000<\/td>\n<td>Exemption up to INR 8,00,000<\/td>\n<td>4x increase<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"New_Mandatory_Conditions_House_Rent_Allowance_HRA\"><\/span><span style=\"color: #000080;\"><strong>New Mandatory Conditions House Rent Allowance (HRA) : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Where annual rent exceeds INR 1,00,000, the following are now mandatory:<\/p>\n<ul>\n<li>Furnishing PAN of the landlord<\/li>\n<li>Declaration whether the landlord is a relative<\/li>\n<li>Mandatory rent agreement as supporting documentation<\/li>\n<li>Failure to meet any of the above conditions results in denial of HRA exemption<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Structural_Changes_in_the_Income_Tax_Act_2025\"><\/span><span style=\"color: #000080;\"><strong>Structural Changes in the Income Tax Act 2025<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Income\u2011Tax Act, 2025, which becomes effective from 1 April 2026, reorganises and simplifies the structure of the Indian tax law. While the layout and section numbering have undergone significant restructuring, the fundamental tax framework remains broadly the same. The primary purpose is to make the statute easier to read, navigate, and implement. The Income Tax Act, 2025, is more of a structural and procedural reform rather than a substantive overhaul. It aims to enhance usability without altering the underlying tax philosophy. For taxpayers and professionals, the focus will now shift from relearning the law to adapting to the new structure and section references.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Comparison_Income_Tax_Act_1961_vs_Income_Tax_Act_2025\"><\/span><span style=\"color: #000080;\"><strong>Comparison: Income Tax Act 1961 vs. Income Tax Act 2025: <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Below is a crisp comparison outlining the structural transformation:<\/p>\n<table style=\"height: 399px;\" width=\"926\">\n<tbody>\n<tr>\n<td><strong>Particulars<\/strong><\/td>\n<td><strong>Income\u2011tax Act 1961<\/strong><\/td>\n<td><strong>Income\u2011tax Act 2025<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Number of Sections<\/td>\n<td>More than 700<\/td>\n<td>536<\/td>\n<\/tr>\n<tr>\n<td>Number of Chapters<\/td>\n<td>23<\/td>\n<td>23<\/td>\n<\/tr>\n<tr>\n<td>Schedules<\/td>\n<td>14<\/td>\n<td>16<\/td>\n<\/tr>\n<tr>\n<td>Total Pages (Content)<\/td>\n<td>823 pages<\/td>\n<td>622 pages<\/td>\n<\/tr>\n<tr>\n<td>Effective Date<\/td>\n<td>In force till 31 March 2026<\/td>\n<td>Effective from 1 April 2026<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Even though the 2025 Act has been re structured with fewer sections and refined chapter content, the core tax system, concepts, and principles remain largely consistent.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Chapters_of_the_New_Income%E2%80%91tax_Act_2025\"><\/span><span style=\"color: #000080;\"><strong>Chapters of the New Income\u2011tax Act, 2025<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Act continues to have 23 chapters, some with sub\u2011divisions. Below is a clean breakdown of each chapter and its purpose. Chapter\u2011wise Overview New Income\u2011tax Act, 2025<\/p>\n<table style=\"height: 1531px;\" width=\"903\">\n<tbody>\n<tr>\n<td><strong>Chapter<\/strong><\/td>\n<td><strong>Overview<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 1<\/strong><\/td>\n<td>Preliminary<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 2<\/strong><\/td>\n<td>Basis of Charge<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 3<\/strong><\/td>\n<td>Incomes which do not form part of Total Income<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 4<\/strong><\/td>\n<td>Computation of Total Income<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 5<\/strong><\/td>\n<td>Income of Other Persons Included in the Total Income of the Assessee<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 6<\/strong><\/td>\n<td>Aggregation of Income<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 7<\/strong><\/td>\n<td>Set\u2011off or Carry Forward and Set\u2011off of Losses<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 8<\/strong><\/td>\n<td>Deductions in Computing Total Income<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 9<\/strong><\/td>\n<td>Rebate and Reliefs<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 10<\/strong><\/td>\n<td>Special Provisions Relating to Avoidance of Tax<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 11<\/strong><\/td>\n<td>General Anti\u2011Avoidance Rule (GAAR)<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 12<\/strong><\/td>\n<td>Mode of Payment in Certain Cases<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 13<\/strong><\/td>\n<td>Determination of Tax in Special Cases<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 14<\/strong><\/td>\n<td>Tax Administration<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 15<\/strong><\/td>\n<td>Return of Income<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 16<\/strong><\/td>\n<td>Procedure for Assessment<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 17<\/strong><\/td>\n<td>Special Tax Provisions for Certain Persons<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 18<\/strong><\/td>\n<td>Appeals, Revision and Alternate Dispute Resolution<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 19<\/strong><\/td>\n<td>Collection and Recovery of Tax<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 20<\/strong><\/td>\n<td>Refunds<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 21<\/strong><\/td>\n<td>Penalties<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 22<\/strong><\/td>\n<td>Offences and Prosecution<\/td>\n<\/tr>\n<tr>\n<td><strong>Chapter 23<\/strong><\/td>\n<td>Miscellaneous<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The Income\u2011Tax Act, 2025 is not a change in the tax regime; it is a restructuring and modernization of the law. The objective is to make the legislation Easier to understand, More logically organized, aligned with modern drafting standards, and user\u2011friendly for taxpayers and professionals alike. The tax system continues fundamentally unchanged, but navigating the law becomes significantly simpler and more intuitive.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"New_Tax_Regime_Slab_Rates_Section_202\"><\/span><span style=\"color: #000080;\"><strong>New Tax Regime Slab Rates (Section 202)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The new tax regime continues as the default regime under Section 202. Slab Rates (Applicable to All Taxpayers)<\/p>\n<table style=\"height: 535px;\" width=\"898\">\n<tbody>\n<tr>\n<td><strong>Income Tax Slab<\/strong><\/td>\n<td><strong>Tax Rate<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Up to INR 4,00,000<\/td>\n<td><strong>NIL<\/strong><\/td>\n<\/tr>\n<tr>\n<td>INR 4,00,001 \u2013 INR 8,00,000<\/td>\n<td><strong>5%<\/strong><\/td>\n<\/tr>\n<tr>\n<td>INR 8,00,001 \u2013 INR 12,00,000<\/td>\n<td><strong>10%<\/strong><\/td>\n<\/tr>\n<tr>\n<td>INR 12,00,001 \u2013 INR 16,00,000<\/td>\n<td><strong>15%<\/strong><\/td>\n<\/tr>\n<tr>\n<td>INR 16,00,001 \u2013 INR 20,00,000<\/td>\n<td><strong>20%<\/strong><\/td>\n<\/tr>\n<tr>\n<td>INR 20,00,001 \u2013 INR 24,00,000<\/td>\n<td><strong>25%<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Above INR 24,00,000<\/td>\n<td><strong>30%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"_Old_Tax_Regime_Slab_Rates_Optional\"><\/span><strong>\u00a0<span style=\"color: #000080;\">Old Tax Regime Slab Rates (Optional)<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 509px;\" width=\"908\">\n<tbody>\n<tr>\n<td><strong>Income Tax Slabs<\/strong><\/td>\n<td><strong>Age &lt; 60 Years &amp; NRIs<\/strong><\/td>\n<td><strong>Age 60\u201380 (Resident)<\/strong><\/td>\n<td><strong>Age &gt; 80 (Resident)<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Up to INR 2,50,000<\/td>\n<td>NIL<\/td>\n<td>NIL<\/td>\n<td>NIL<\/td>\n<\/tr>\n<tr>\n<td>INR 2,50,001 \u2013 INR 3,00,000<\/td>\n<td>5%<\/td>\n<td>NIL<\/td>\n<td>NIL<\/td>\n<\/tr>\n<tr>\n<td>INR 3,00,001 \u2013 INR 5,00,000<\/td>\n<td>5%<\/td>\n<td>5%<\/td>\n<td>NIL<\/td>\n<\/tr>\n<tr>\n<td>INR 5,00,001 \u2013 INR 10,00,000<\/td>\n<td>20%<\/td>\n<td>20%<\/td>\n<td>20%<\/td>\n<\/tr>\n<tr>\n<td>Above INR 10,00,000<\/td>\n<td>30%<\/td>\n<td>30%<\/td>\n<td>30%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Deductions_Under_the_Income_Tax_Act_2025\"><\/span><span style=\"color: #000080;\"><strong>Deductions Under the Income Tax Act, 2025<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While the structure and section numbering have changed, the substance of most deductions remains similar. Key Deductions Mapping (Old Act vs New Act)<\/p>\n<table style=\"height: 1279px;\" width=\"905\">\n<tbody>\n<tr>\n<td><strong>Deduction \/ Concept<\/strong><\/td>\n<td><strong>IT Act 1961<\/strong><\/td>\n<td><strong>IT Act 2025<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Salary income definition<\/td>\n<td>Sec 15<\/td>\n<td>Sec 15<\/td>\n<\/tr>\n<tr>\n<td>Standard deduction<\/td>\n<td>Sec 16(ia)<\/td>\n<td>Sec 19<\/td>\n<\/tr>\n<tr>\n<td>Professional tax<\/td>\n<td>Sec 16(iii)<\/td>\n<td>Sec 19<\/td>\n<\/tr>\n<tr>\n<td>Perquisites<\/td>\n<td>Sec 17<\/td>\n<td>Sec 17<\/td>\n<\/tr>\n<tr>\n<td>Income from house property<\/td>\n<td>Sec 22<\/td>\n<td>Sec 20<\/td>\n<\/tr>\n<tr>\n<td>Annual value<\/td>\n<td>Sec 23<\/td>\n<td>Sec 21<\/td>\n<\/tr>\n<tr>\n<td>Home loan interest<\/td>\n<td>Sec 24(b)<\/td>\n<td>Sec 22<\/td>\n<\/tr>\n<tr>\n<td>80C investments<\/td>\n<td>Sec 80C<\/td>\n<td>Sec 123<\/td>\n<\/tr>\n<tr>\n<td>Pension \/ annuity<\/td>\n<td>Sec 80CCC<\/td>\n<td>Sec 123<\/td>\n<\/tr>\n<tr>\n<td>NPS deduction<\/td>\n<td>Sec 80CCD<\/td>\n<td>Sec 124<\/td>\n<\/tr>\n<tr>\n<td>Health insurance<\/td>\n<td>Sec 80D<\/td>\n<td>Sec 126<\/td>\n<\/tr>\n<tr>\n<td>Education loan interest<\/td>\n<td>Sec 80E<\/td>\n<td>Sec 129<\/td>\n<\/tr>\n<tr>\n<td>Donations<\/td>\n<td>Sec 80G<\/td>\n<td>Sec 133<\/td>\n<\/tr>\n<tr>\n<td>Savings account interest<\/td>\n<td>Sec 80TTA<\/td>\n<td>Sec 153<\/td>\n<\/tr>\n<tr>\n<td>Rebate<\/td>\n<td>Sec 87A<\/td>\n<td>Sec 156<\/td>\n<\/tr>\n<tr>\n<td>HRA exemption<\/td>\n<td>Sec 10(13A)<\/td>\n<td>Schedule for exempt income<\/td>\n<\/tr>\n<tr>\n<td>LTA exemption<\/td>\n<td>Sec 10(5)<\/td>\n<td>Schedule for exempt allowances<\/td>\n<\/tr>\n<tr>\n<td>Gratuity exemption<\/td>\n<td>Sec 10(10)<\/td>\n<td>Schedule for retirement benefits<\/td>\n<\/tr>\n<tr>\n<td>Leave encashment<\/td>\n<td>Sec 10(10AA)<\/td>\n<td>Same schedule<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"TDS_Under_the_New_Income_Tax_Act_2025\"><\/span><span style=\"color: #000080;\"><strong>TDS Under the New Income Tax Act, 2025 :<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-31727\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/TDS-TCS-.png\" alt=\"TDS TCS\" width=\"979\" height=\"1113\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/TDS-TCS-.png 387w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/04\/TDS-TCS--264x300.png 264w\" sizes=\"(max-width: 979px) 100vw, 979px\" \/><\/h2>\n<h3 data-section-id=\"1jrqt6m\" data-start=\"509\" data-end=\"542\"><span class=\"ez-toc-section\" id=\"TDS_Major_Changes_at_a_Glance\"><\/span><span style=\"color: #000080;\" role=\"text\"><strong data-start=\"513\" data-end=\"542\">TDS Major Changes at a Glance<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"TyagGW_tableContainer\">\n<div class=\"group TyagGW_tableWrapper flex flex-col-reverse w-fit\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" data-start=\"544\" data-end=\"1602\">\n<thead data-start=\"544\" data-end=\"634\">\n<tr data-start=\"544\" data-end=\"634\">\n<th class=\"\" data-start=\"544\" data-end=\"560\" data-col-size=\"sm\"><span style=\"color: #000080;\"><strong data-start=\"546\" data-end=\"559\">Provision<\/strong><\/span><\/th>\n<th class=\"\" data-start=\"560\" data-end=\"597\" data-col-size=\"sm\"><span style=\"color: #000080;\"><strong data-start=\"562\" data-end=\"596\">Applicable before 1 April 2026<\/strong><\/span><\/th>\n<th class=\"\" data-start=\"597\" data-end=\"634\" data-col-size=\"md\"><span style=\"color: #000080;\"><strong data-start=\"599\" data-end=\"632\">Applicable after 1 April 2026<\/strong><\/span><\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"722\" data-end=\"1602\">\n<tr data-start=\"722\" data-end=\"841\">\n<td data-start=\"722\" data-end=\"741\" data-col-size=\"sm\"><strong data-start=\"724\" data-end=\"740\">TDS Sections<\/strong><\/td>\n<td data-col-size=\"sm\" data-start=\"741\" data-end=\"783\">Multiple sections like 194C, 194J, etc.<\/td>\n<td data-col-size=\"md\" data-start=\"783\" data-end=\"841\">Consolidated into fewer sections (e.g., 392, 393, 394)<\/td>\n<\/tr>\n<tr data-start=\"842\" data-end=\"962\">\n<td data-start=\"842\" data-end=\"858\" data-col-size=\"sm\"><strong data-start=\"844\" data-end=\"857\">TDS Forms<\/strong><\/td>\n<td data-col-size=\"sm\" data-start=\"858\" data-end=\"884\">Form 16, Form 16A, etc.<\/td>\n<td data-col-size=\"md\" data-start=\"884\" data-end=\"962\">Auto-filled forms with a single comprehensive format (e.g., Form 130, 131)<\/td>\n<\/tr>\n<tr data-start=\"963\" data-end=\"1058\">\n<td data-start=\"963\" data-end=\"1001\" data-col-size=\"sm\"><strong data-start=\"965\" data-end=\"1000\">TCS on Overseas Education (LRS)<\/strong><\/td>\n<td data-col-size=\"sm\" data-start=\"1001\" data-end=\"1023\">5% (above \u20b910 lakh)<\/td>\n<td data-col-size=\"md\" data-start=\"1023\" data-end=\"1058\">Reduced to 2% (above threshold)<\/td>\n<\/tr>\n<tr data-start=\"1059\" data-end=\"1137\">\n<td data-start=\"1059\" data-end=\"1095\" data-col-size=\"sm\"><strong data-start=\"1061\" data-end=\"1094\">TCS on Overseas Tour Packages<\/strong><\/td>\n<td data-col-size=\"sm\" data-start=\"1095\" data-end=\"1126\">5% up to \u20b910 lakh, 20% above<\/td>\n<td data-col-size=\"md\" data-start=\"1126\" data-end=\"1137\">Flat 2%<\/td>\n<\/tr>\n<tr data-start=\"1138\" data-end=\"1222\">\n<td data-start=\"1138\" data-end=\"1183\" data-col-size=\"sm\"><strong data-start=\"1140\" data-end=\"1182\">TCS on Goods (scrap, liquor, minerals)<\/strong><\/td>\n<td data-col-size=\"sm\" data-start=\"1183\" data-end=\"1211\">1% (or 5% for some items)<\/td>\n<td data-col-size=\"md\" data-start=\"1211\" data-end=\"1222\">Flat 2%<\/td>\n<\/tr>\n<tr data-start=\"1223\" data-end=\"1325\">\n<td data-start=\"1223\" data-end=\"1252\" data-col-size=\"sm\"><strong data-start=\"1225\" data-end=\"1251\">TDS on Manpower Supply<\/strong><\/td>\n<td data-col-size=\"sm\" data-start=\"1252\" data-end=\"1282\">Not clearly defined earlier<\/td>\n<td data-col-size=\"md\" data-start=\"1282\" data-end=\"1325\">Explicitly covered under TDS provisions<\/td>\n<\/tr>\n<tr data-start=\"1326\" data-end=\"1418\">\n<td data-start=\"1326\" data-end=\"1366\" data-col-size=\"sm\"><strong data-start=\"1328\" data-end=\"1365\">TDS on MACT Compensation Interest<\/strong><\/td>\n<td data-col-size=\"sm\" data-start=\"1366\" data-end=\"1393\">Applicable above \u20b950,000<\/td>\n<td data-col-size=\"md\" data-start=\"1393\" data-end=\"1418\">Fully exempt (No TDS)<\/td>\n<\/tr>\n<tr data-start=\"1419\" data-end=\"1510\">\n<td data-start=\"1419\" data-end=\"1453\" data-col-size=\"sm\"><strong data-start=\"1421\" data-end=\"1452\">Lower \/ Nil TDS Certificate<\/strong><\/td>\n<td data-col-size=\"sm\" data-start=\"1453\" data-end=\"1479\">Manual approval process<\/td>\n<td data-col-size=\"md\" data-start=\"1479\" data-end=\"1510\">Automated system introduced<\/td>\n<\/tr>\n<tr data-start=\"1511\" data-end=\"1602\">\n<td data-start=\"1511\" data-end=\"1550\" data-col-size=\"sm\"><strong data-start=\"1513\" data-end=\"1549\">TDS on NRI Property Transactions<\/strong><\/td>\n<td data-col-size=\"sm\" data-start=\"1550\" data-end=\"1577\">Based on TAN of deductor<\/td>\n<td data-col-size=\"md\" data-start=\"1577\" data-end=\"1602\">Based on PAN of buyer<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<ul data-start=\"1632\" data-end=\"2000\">\n<li data-section-id=\"1lp6yzd\" data-start=\"1632\" data-end=\"1710\"><strong data-start=\"1634\" data-end=\"1653\">Simplification:<\/strong> Reduction of 25+ sections into a streamlined structure<\/li>\n<li data-section-id=\"4xrdmo\" data-start=\"1711\" data-end=\"1777\"><strong data-start=\"1713\" data-end=\"1728\">Automation:<\/strong> Increased reliance on system-driven compliance<\/li>\n<li data-section-id=\"du86x6\" data-start=\"1778\" data-end=\"1857\"><strong data-start=\"1780\" data-end=\"1796\">Lower Rates:<\/strong> Significant reduction in TCS rates for foreign remittances<\/li>\n<li data-section-id=\"n5ddi2\" data-start=\"1858\" data-end=\"1925\"><strong data-start=\"1860\" data-end=\"1872\">Clarity:<\/strong> Removal of ambiguity in areas like manpower supply<\/li>\n<li data-section-id=\"uuj3pq\" data-start=\"1926\" data-end=\"2000\"><strong data-start=\"1928\" data-end=\"1951\">Ease of Compliance:<\/strong> Faster processing for certificates and filings<\/li>\n<\/ul>\n<p>A major structural reform All TDS provisions are consolidated under a single section: Section 393 \u2013 Tax to be Deducted at Source. This replaces scattered TDS sections (192 to 194T) under the 1961 Act and aims to streamline compliance for deductors.<\/p>\n<p><span style=\"color: #000080;\"><strong>Old vs New Act \u2013 Key Section Mapping : <\/strong><\/span><\/p>\n<table style=\"height: 460px;\" width=\"905\">\n<tbody>\n<tr>\n<td><strong>Concept<\/strong><\/td>\n<td><strong>Income Tax Act 1961<\/strong><\/td>\n<td><strong>Income Tax Act 2025<\/strong><\/td>\n<\/tr>\n<tr>\n<td>New Tax Regime<\/td>\n<td>Sec 115BAC<\/td>\n<td>Sec 202<\/td>\n<\/tr>\n<tr>\n<td>House property deduction<\/td>\n<td>Sec 24<\/td>\n<td>Sec 22<\/td>\n<\/tr>\n<tr>\n<td>Rebate<\/td>\n<td>Sec 87A<\/td>\n<td>Sec 156<\/td>\n<\/tr>\n<tr>\n<td>Medical insurance<\/td>\n<td>Sec 80D<\/td>\n<td>Sec 126<\/td>\n<\/tr>\n<tr>\n<td>Return filing<\/td>\n<td>Sec 139<\/td>\n<td>Sec 263<\/td>\n<\/tr>\n<tr>\n<td>Exempt incomes<\/td>\n<td>Sec 10<\/td>\n<td>Sec 11<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The Income Tax Department has provided a section mapping tool to help taxpayers transition smoothly.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Impact_of_the_Income_Tax_Act_2025_on_Different_Taxpayers\"><\/span><span style=\"color: #000080;\"><strong>Impact of the Income Tax Act 2025 on Different Taxpayers <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Salaried Individuals<\/strong><\/p>\n<ul>\n<li>New Tax Year concept replaces \u201cAssessment Year\u201d and \u201cPrevious Year\u201d.<\/li>\n<li>Higher exemption limits under the Income Tax Rules, 2026 for allowances.<\/li>\n<li>New regime remains default, but option to choose old regime continues.<\/li>\n<\/ul>\n<p><strong>NRI Taxpayers<\/strong><\/p>\n<ul>\n<li>Stricter compliance on foreign asset disclosure.<\/li>\n<li>Heavy penalties for non\u2011reporting of:<\/li>\n<\/ul>\n<ul>\n<li>foreign bank accounts<\/li>\n<li>foreign securities<\/li>\n<li>overseas property<\/li>\n<\/ul>\n<ul>\n<li>NRE interest remains tax\u2011free, as before.<\/li>\n<\/ul>\n<p><strong>Senior Citizens<\/strong><\/p>\n<ul>\n<li>Old\u2011regime slabs continue to offer higher basic exemption.<\/li>\n<li>New TDS threshold on interest income increased to INR 1 lakh.<\/li>\n<li>Form 15G\/15H merged into a new Form 121 for ease of declaration.<\/li>\n<\/ul>\n<p><strong>Download \u2013 Income Tax Act, 2025 : <\/strong>The Act can be downloaded from the official Income Tax Department website and is effective from 1 April 2026.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Income_Tax_Act_2025_vs_1961_%E2%80%94_Major_Differences\"><\/span><span style=\"color: #000080;\"><strong>Income Tax Act 2025 vs 1961 \u2014 Major Differences<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 566px;\" width=\"909\">\n<tbody>\n<tr>\n<td><strong>Aspect<\/strong><\/td>\n<td><strong>IT Act, 1961<\/strong><\/td>\n<td><strong>New IT Act, 2025<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Effective date<\/td>\n<td>From 1 April 1962<\/td>\n<td>From 1 April 2026<\/td>\n<\/tr>\n<tr>\n<td>Structure<\/td>\n<td>Long and complex<\/td>\n<td>Simplified &amp; reorganised<\/td>\n<\/tr>\n<tr>\n<td>Year concept<\/td>\n<td>AY + PY<\/td>\n<td>One unified <strong>Tax Year<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Default tax regime<\/td>\n<td>Section 115BAC<\/td>\n<td>Section 202<\/td>\n<\/tr>\n<tr>\n<td>TDS<\/td>\n<td>Scattered across many sections<\/td>\n<td><strong>All in Section 393<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Compliance<\/td>\n<td>High complexity<\/td>\n<td>Clearer drafting<\/td>\n<\/tr>\n<tr>\n<td>Virtual Digital Assets<\/td>\n<td>Limited scope<\/td>\n<td>Expanded to include broader fintech assets<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Summary_of_Changes_in_perquisites_allowances_in_Income_Tax_Act_2025\"><\/span><span style=\"color: #000080;\"><strong>Summary of Changes in perquisites &amp; allowances in Income Tax Act, 2025<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Compiled from the analysis shared by Rajput Jain and Associates, the Income Tax Act, 2025 introduces a cleaner, more modern framework while retaining the core essence of India\u2019s income\u2011tax system. The reorganised sections, consolidated TDS regime, simplified slab structure, and clearer drafting aim to make compliance easier, more transparent, and aligned with digital governance. Summary of Changes in perquisites &amp; allowances in Income Tax Act, 2025<\/p>\n<ul>\n<li>Motor Car Perquisite: Sharp rise in monthly perquisite valuation\u2014increases of 2.5x to 3x across categories.<\/li>\n<li>Other Perquisites: Higher tax\u2011free thresholds for Loans, gifts, and Overseas medical treatment<\/li>\n<li>HRA Compliance Tightened: New documentation and relationship disclosure requirements for rent &gt; INR 100,000.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key Changes in Perquisites &amp; Allowances in Income Tax Act, 2025 The Income Tax\u00a0Act, 2025, introduced by the Income Tax Department and effective from 1 April 2026, brings structural clarity and rationalisation in the taxation of perquisites and allowances under the head \u201cSalaries.\u201d . The changes in perquisites and allowances under the Income Tax Act, &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":[10452],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/31724"}],"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=31724"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/31724\/revisions"}],"predecessor-version":[{"id":31733,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/31724\/revisions\/31733"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=31724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=31724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=31724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}