Here are 10 income income tax rule changes that can directly impact your money, see what are the rules? and how it can benefit our money.
Central Government announces tax changes tax slabs and rates in the month of February while presenting annual budget if there is a changes in Tax rules and guide lens the Income Tax Department issues the notification and certain information for taxpayers about necessary changes.
Now let’s see 10 new income tax rule changes for 2025.
1.2025 new tax lab 0 tax on income up to 12 lakh
In budget 2025 Central Government announces new tax regime that makes middle class relief, if the total income is up to 12 lakh it will be tax free. It will really helps to reduce tax burden on the middle class.
2. ITR-U filing period increase to 48 months under new rules
The important change for ITR-U filing in it’s time limit previous it has 24 months but now there is 48 months after the new rule . This is very useful change if there is any mistake in return filling then there will be now a chance to correct.
3 .Tax deduction rule for self occupied property.
The government has abolished the notional rent requirement on self-occupied or vacant houses. Homeowners are no longer required to show imaginary rental income for such properties. This update offers significant tax relief, especially for government employees who keep properties vacant due to frequent job transfers.
4.TDS Limit on Rent jumped from ₹2.4 Lakh to ₹6 Lakh
The TDS limit has been increase from ₹2.4 Lakh to ₹6 Lakh. This can reduce in unnecessary deducting TDS on small-medium rents.
5.Senior Citizens Get Higher 80TTB Limit on Interest Income – Now ₹1 Lakh
Senior citizen above age 60 year now can save tax up to 1 Lakh on there interest income from banks /DPOCs instead of Rs 50000.This is a big relief for senior citizen .
6.TCS Threshold on LRS Transactions Increased to ₹10 Lakh
The taxed amount on TCS ( tax collected at source) at send money abroad (LRS) has increased up to 10 lakh. However , it is completely zero when money is transfer for educational purpose. This is big relief for students and their families.
7.TDS/TCS Delay Rules Made Easier – No Legal Action for Late Payment
No Prosecution for Late TCS Statement Filing if Tax Paid on Time .Additionally, a higher TDS rate will now apply only in cases where the PAN is not provided, helping reduce confusion and avoid unnecessary penalties.
8.New Income Tax Bill Passed – Digital-First Approach with Easier Compliance.
In August 2025, Parliament approved the new Income Tax Bill, set to replace the Income Tax Act of 1961. The bill focuses on making the tax system digital, transparent, and easier to follow. It will introduce features like NIL-TDS certificates to help taxpayers plan and file more efficiently.
9.Extension of ITR deadline: Till September 15 for non-audit cases
In a surprising move, the CBDT extended the ITR filing deadline for taxpayers not required to undergo audits from July 15, 2025, to September 15, 2025. The extension was granted to allow for system upgrades and make the filing process easier for users.
10.Interest rate on advance tax remains the same = 1% (Misconception cleared)
There was confusion in the draft of the new Income Tax Bill suggesting that the interest rate on advance tax shortfall would rise from 1% to 3% per month. However, Parliament and the government have clarified that this was only a drafting error. The rate will remain unchanged at 1% per month.
What’s benefit for taxpayers :
-We have seen that in some changes their is a tax reduction it will surely reduce burden from middleclass taxpayers .
-By using digital tax system it makes system more transparent and easy to handle .
Note for taxpayers :
This information is primary ,more information and detail of changes in rule would out later. we will update you soon .