Finance Ministry

Finance Act 2025 receives assent of the President on the 29th March, 2025

Finance Act 2025 receives assent of the President on the 29th March, 2025

The Union Finance Minister MS Sitharaman had presented Union Budget 2025-26 on 1st February 2025. The Finance Act 2025 has received the assent of the President on the 29th March, 2025 and has been notified.

Major Highlights of Income Tax and other Proposals in Union Budget 2025-26 were as under:

1. Investment and turnover limit for classification of MSME increased.

2. Startups – New Funds of Funds to be setup

3.  New Income Tax Bill to come next week 

4. Trust first, Scrutinize later – commitment of ITD

5. Special focus on Middle class, TDS/TCS reforms

6. TDS rationalising. Rates and threshold reduced

7. Limit for TDS on interest for senior citizens increased

8. TDS limit on rent increased to 6 lakhs

9. TCS threshold on LRS increased to 10 lakhs. No TCS for LRS for education

10. Higher TDS to apply only to Non PAN cases

11. Decriminilisation of late filing of TCS

12. Extension of time limit for updated return to 4 years

13. Small charitable trust etc. – Period of registration extended to seven years

14. Nil Annual Value of self occupied property – Benefit extended to two self occupied house property

15. Safe Harbour Rules extended

16. NSS withdrawal exempted for seniors citizens

17. Presumptive tax / Safe Harbour Rules for Non resident

18. Tonnage Tax scheme extended to inland vessels 

19. Extension for incorporation period of startups to 5 years

20. Section 87A rebate for AY 2025-26 – No income tax payable up to income of Rs 12 lakhs with rebate. 

New Personal Income Tax Slab for AY 2026-27 under New Tax Regime are as under

0 to 4 lakhs : Nil

4 to 8 lakh : 5%

8-12 lakhs : 10%

12-16 lakhs : 15%

16-20 Lakhs: 20%

20-24 Lakhs : 25%

above 24 Lakhs : 30%

Download Copy of Finance Act 2025 Click Here >>

Download Copy of Finance Bill 2025 Click Here >>

Download FAQs on Personal Tax Reforms by Budget 2025-26 Click Here >>

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