Individual Taxation: A New Era of Relief

The most significant changes are aimed at making the new tax regime the preferred choice for a majority of taxpayers.

• Massive Increase in Tax-Free Income: The rebate under **Section 87A** has been enhanced from ₹25,000 to a monumental **₹60,000**. This means that a resident individual with a total income of up to **₹12 lakh** will have **zero tax liability** under the new regime.
• New, Simplified Tax Slabs: The previous complicated structure has been replaced with a more streamlined system.

  Taxable Income Slab (₹)	Old Tax Rate (%)	New Tax Rate (%)
  Up to ₹4 lakh	Nil	Nil
  ₹4 lakh to ₹8 lakh	5%	5%
  ₹8 lakh to ₹12 lakh	10%	10%
  ₹12 lakh to ₹16 lakh	15%	15%
  ₹16 lakh to ₹20 lakh	20%	20%
  ₹20 lakh to ₹24 lakh	25%	25%
  Above ₹24 lakh	30%	30%

• Standard Deduction is Back! Salaried individuals can now claim a **standard deduction of ₹75,000** under the new tax regime. This, combined with the enhanced rebate, makes income up to **₹12.75 lakh** completely tax-free for a salaried employee.
• Two Self-Occupied Properties: You can now declare the annual value of **two** self-occupied house properties as nil. This provides significant relief for individuals who own more than one house.
• Parity for Pension Schemes: The tax treatment of the Unified Pension Scheme (UPS) has been fully aligned with the National Pension System (NPS), ensuring all tax benefits are available for both schemes.

Game-Changing TDS & TCS Amendments

To ease the compliance burden, the government has rationalized several TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) provisions.

• Higher TDS Thresholds: The limits for TDS have been increased across the board.
• Major TCS Changes: The provision for TCS on the sale of goods exceeding ₹50 lakh (u/s 206C(1H)) has been completely **abolished**, a significant relief for businesses.
• Removal of Key Provisions: Sections **206AB** and **206CCA** have been **omitted**, simplifying compliance.

Big Boost for Business & Investment

• Abolition of Equalisation Levy: The Equalisation Levy on digital services has been completely **abolished** from April 1, 2025.
• Tax Incentives for Startups: The tax holiday for eligible startups has been extended to **March 31, 2030**.
• IFSC Incentives: Tax concessions for units in International Financial Services Centres (IFSCs) have been extended.

Administrative & Procedural Streamlining

• Extended Deadline for Updated Returns: The time limit for filing an Updated Income Tax Return (**ITR-U**) has been extended from 24 months to **48 months**.
• Abolition of Block Assessment: The government has abolished the block assessment for search cases.
• New Section 194T: A new TDS provision mandates a **10% TDS** on certain payments to partners.