Income Tax: Which rules have changed so far? Find out how it will affect your income and savings..

The year 2025 has been significant for income taxpayers in many ways. This year, not only were tax-related rules changed, but efforts were also made to simplify the return filing process. The objective of these changes was clear: to simplify the tax system, reduce errors, and provide relief to honest taxpayers. These changes will also impact your tax planning in the coming years.

Increased Tax-Free Income Limit Provides Significant Relief
The biggest change in Budget 2025 was related to tax-free income. With the increase in tax rebates under the new tax system, even higher-earning salaried individuals will not have to pay tax. After availing the benefit of the standard deduction, income up to a certain limit has become completely tax-free. This has directly benefited the middle class and salaried individuals.

Changes in the ITR Filing Process
In 2025, changes were made to the deadlines and processes related to income tax returns. The deadline was extended several times to give taxpayers sufficient time to file their returns correctly. Additionally, online rectification facilities were provided for some tax orders, reducing the need for office visits and speeding up the process.

Simplified TDS and TCS Rules
2025 brought relief for small taxpayers and senior citizens. The TDS limit on bank interest, rent, and certain payments was increased. This reduced the problem of frequent tax deductions and the hassle of refunds. This has particularly benefited senior citizens and small business owners.

New TDS Rule on Payments to Partners
From 2025, a new TDS rule has been implemented on salaries, bonuses, commissions, or interest received by partners in firms and LLPs. The aim is to increase tax transparency. Although this has increased compliance, in the long run, it will make the tax system more transparent and reliable.

More Time to File Updated Returns
Taxpayers will now have more time to correct their mistakes. The deadline for filing updated returns has been extended, allowing people to correctly declare their income from previous years. This will reduce tax disputes and give people the opportunity to correct their mistakes without fear.

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