Starting April 1, 2025, India enters a new assessment year with several significant reforms in taxation and economic policies. At hisabkitab, we believe understanding these changes should be simple. In this post, we break down 10 key updates to help you manage your finances effectively.

1. Revised Income Tax Slabs

New Tax Regime Benefits

Individuals earning up to ₹12 lakh annually are exempt from income tax. For incomes above ₹12 lakh, the tax structure is:

• Up to ₹4 lakh – No tax

• ₹4 lakh to ₹8 lakh – 5% tax

• ₹8 lakh to ₹12 lakh – 10% tax

• ₹12 lakh to ₹16 lakh – 15% tax

• ₹16 lakh to ₹20 lakh – 20% tax

• ₹20 lakh to ₹24 lakh – 25% tax

• Above ₹24 lakh – 30% tax

Old Tax Regime Option

Taxpayers can choose to continue with the previous system, where rates remain unchanged.

📌 For official details, refer to the Income Tax Department, Government of India.

2. Increased TDS Threshold for Senior Citizens

The Tax Deducted at Source (TDS) threshold on interest income for senior citizens has been raised from ₹50,000 to ₹1 lakh.

🔗 For more details, visit the Income Tax Department.

3. Higher TDS Limit on Rent Payments

The annual TDS limit on rent has increased from ₹2.4 lakh to ₹6 lakh, reducing compliance burdens for property owners and tenants.

4. Adjusted TCS for Liberalized Remittance Scheme (LRS)

The Tax Collected at Source (TCS) threshold for foreign remittances under LRS has been increased from ₹7 lakh to ₹10 lakh per financial year.

5. Extended Time for Filing Income Tax Returns

Taxpayers now have four years (previously two years) to file updated income tax returns, offering more flexibility and reducing last-minute filing pressure.

6. Fiscal Deficit Reduction

The government plans to reduce the fiscal deficit to:

• 4.8% of GDP in 2024-25

• 4.4% of GDP in 2025-26

📢 For official updates on fiscal policies, check the Ministry of Finance or Press Information Bureau (PIB).

7. Boost to Agriculture and MSMEs

Agricultural Support

• Initiatives like the Prime Minister Dhan-Dhaanya Krishi Yojana will develop key agricultural districts.

• Increased focus on pulse production.

• Establishment of a Makhana Board in Bihar.

MSME Assistance

• The credit guarantee cover for Micro, Small, and Medium Enterprises (MSMEs) has increased from ₹5 crore to ₹10 crore.

• This will enhance credit access for small businesses.

8. Significant Investment in Innovation

The government has allocated ₹20,000 crore to research, development, and innovation by the private sector, supporting technological progress and economic growth.

9. Sector-Specific Enhancements

Insurance Sector

• The Foreign Direct Investment (FDI) limit in the insurance sector has been raised from 74% to 100%, encouraging greater foreign investment.

Education & Skilling

• 50,000 Atal Tinkering Labs to be set up in government schools.

• Establishment of a Centre of Excellence in Artificial Intelligence (AI) for Education with a ₹500 crore investment.

Healthcare & Urban Development

• Gig workers will benefit from identity cards and improved healthcare under the PM Jan Arogya Yojana.

• A ₹1 lakh crore Urban Challenge Fund will boost city infrastructure.

10. Increased Rebate and Adjusted TDS for Other Income Sources

Rebate Under Section 87A

• The rebate limit has been increased to ₹60,000 (previously ₹25,000), offering extra relief for eligible taxpayers.

Other Adjustments

• TDS for interest on securities now applies to amounts exceeding ₹10,000.

• TDS limit for professional fees raised from ₹30,000 to ₹50,000.

How hisabkitab Makes It Easy for You

Navigating these tax changes can be complex, but hisabkitab simplifies it with: 👉 Real-time updates on tax reforms. 👉 Automated tools to calculate taxes, adjust TDS, and file returns accurately. 👉 Time-saving features to help you focus on your business.

Conclusion

These 10 updates from April 1, 2025, aim to make tax compliance easier for individuals and businesses. With simplified guidelines, revised thresholds, and extended filing durations, these reforms promise a smoother financial journey.

📌 For official details, visit the Income Tax Department and Ministry of Finance.

💡 Stay informed, stay compliant, and let hisabkitab simplify your accounting needs!