Union Budget 2025: New tax slabs, extended limit to file updated ITR, and other key changes announced in this budget

In her Budget 2025 speech on February 1 (Saturday), a slew of important tax-related changes were announced by the Finance Minister, with the large taxation alleviation introduced for the middle-class payer with the nil taxation slab bounds being accrued from the earlier Rs 7 lakh to Rs 12 lakh nether the caller taxation regime.

Here is the little summary of each the cardinal taxation changes introduced successful Union Budget 2025:

Nil taxation for individuals with yearly income up to Rs 12 lakh: Offering much-needed alleviation to taxpayers, the FM successful her Budget 2025 code projected to levy nary income taxation connected yearly income up to Rs 12 lakh. This is simply a monolithic increase from the existent exemption of up to Rs 7 lakh.

So, accordingly the proposed tax slabs nether the caller taxation regime for the FY 2025-26 oregon AY 2026-27 

2. Time bounds to record an updated income taxation instrumentality accrued from 2 years to 4 years: Now alternatively of 2 years, taxpayers volition person 4 years to record the updated taxation return. Updated ITR filed utilizing the signifier ITR-U enables taxpayers to update their ITRs i.e. close their ITRs for immoderate errors oregon omissions. Also, they tin record their ITRs if they didn't bash truthful wrong the prescribed clip bounds oregon failed to record the belated ITR- wrong 2 years from the extremity of the applicable appraisal year.

3. Threshold for TDS deduction on rent accrued from Rs 2.4 lakhs to Rs 6 lakhs: The Finance Minister has projected to raise the TDS threshold for rental income from Rs 2.4 lakh per twelvemonth to Rs 6 lakh per year. This has been aimed astatine reducing the fig of transactions that are taxable to TDS oregon taxation deduction astatine source.

4. Threshold for TCS connected remittances accrued from Rs 7 lakhs to Rs 10 lakhs: The authorities has besides raised the TCS exemption bounds connected Liberalised Remittance Scheme (LRS) transactions from Rs 7 lakh to Rs 10 lakh.

 Furthermore, the FM has projected to region TCS connected remittances for acquisition purposes, wherever specified remittance is retired of a indebtedness taken from a specified fiscal institution. 

5. TCS and TDS compliance for merchantability of goods: Both TDS and TCS are being applied connected immoderate transaction relating to the merchantability of goods. To forestall specified compliance difficulties, TCS is projected to beryllium omitted. I besides suggest that the provisions of the higher TDS deduction volition present use lone successful non-PAN cases, said the FM portion delivering her Budget 2025 speech.