Union Budget 2025 Highlights.
Budget Income Tax Updates – 2025.
Old Tax Regime: No changes in Standard Deduction and Slab Rates.
New Tax Regime:
New Tax Slab Rates
| Income Range (₹) | Tax Rate (%) |
| 0 – 4,00,000 | 0% |
| 4,00,001 – 8,00,000 | 5% |
| 8,00,001 – 12,00,000 | 10% |
| 12,00,001 – 16,00,000 | 15% |
| 16,00,001 – 20,00,000 | 20% |
| 20,00,001 – 24,00,000 | 25% |
| 24,00,001 & Above | 30% |
Note: No deductions available except the ones mentioned below.
Deductions Available
Standard Deduction (U/s 16(ia)) – Up to ₹75,000
Family Pension (U/s 57(iia)) – Up to ₹25,000
Deposits in Agniveer Corpus Fund (U/s 80CCH(2))
Rebate U/s 87A – ₹60,000
Note: Rebate is NOT applicable on incomes chargeable at special rates (e.g., Capital Gains U/s 111A, 112).
Deductions Allowable under New Regime
Section 80CCD(1B) – Up to ₹50,000 for deposits in a pension scheme in the name of a minor.
Section 80IAC (Startups Benefit) – Deadline extended from March 2025 to March 2030.
Small Trusts or Institutions – Total income should be less than ₹5 crores in each of the 2 previous years before applying for exemption.
Section 12AB – Certificate Validity Increased; Previously: 5 years~ Now: 10 years
TCS on Forest Product: TCS at 2% (earlier 2.5%) applicable only to forest produce (excluding timber & tendu leaves) obtained under a forest lease.
Applicability of Section 194Q & 206C (1H): Provisions of Section 206C(1H) will NOT be applicable from April 1, 2025.
TDS Rates with current and proposed threshold
| S.I. | Section | Current threshold | Proposed threshold |
| 1 | 193 – Interest on securities | Nil | Rs. 10,000/- |
| 194A – Interest other than Interest on securities | 1. Rs. 50,000/- for senior citizen
2. Rs. 40,000/- in case of others when payer is bank, cooperative society and post office
3. Rs. 5,000/- in other cases
|
1. Rs. 1,00,000/- for senior citizen
2. Rs. 50,000/- in case of others when payer is bank, cooperative society and post office
3. Rs. 10,000/- in other cases |
|
| 2 | 194-Dividend for an individual shareholder | Rs. 5,000/-
|
Rs. 10,000/- |
| 3 | 194K – Income in respect of units of a mutual fund or specified uneraking | Rs. 5,000/-
|
Rs. 10,000/-
|
| 4 | 194B-Winnings from lottery, crossword puzzle, etc.
|
Aggregate of amounts exceeding Rs. 10,000/- during the financial year
|
Rs. 10,000/- in respect of a single transaction |
| 5 | 194BB- Winnings from horse race
|
||
| 6 | 194D- Insurance commission | Rs. 15,000/-
|
Rs. 20,000/-
|
| 7 | 194G – Income by way of commission, prize etc. on lottery tickets
|
Rs. 15,000/-
|
Rs. 20,000/-
|
| 8 | 194H- Commission or brokerage
|
Rs. 15,000/-
|
Rs. 20,000/-
|
| 9 | 194-l- Rent
|
Rs. 2,40,000/-during the financial year | Rs. 50,000/-per month or part of a month |
| 10 | 194J – Fee for professional or technical services | Rs. 30,000/-
|
Rs. 20,000/-
|
| 11 | 194LA – Income by way of enhanced compensation | Rs. 2,50,000/- | 5,00,000/-
|