The landscape of income tax filing in India has undergone significant changes as we approach the 2025 filing season. Under the new tax regime, taxpayers can expect potential annual savings of Rs17,500 with revised slabs.

 

 

While the old tax regime remains unchanged with its existing slabs starting from nil tax up to Rs2.5 lakh to 30% above Rs10 lakh, significant modifications have been made to capital gains taxation. 

 

Short-term capital gains tax has been increased to 20%, while long-term capital gains tax is now at 12.50%, with the tax-exempt threshold raised to Rs1,25,000. Securities transaction tax has also been revised, with options STT increasing to 0.1% and futures STT to 0.02%.From 1st October 2024, share buyback taxation has been restructured, with proceeds now being taxed as individual shareholder income at applicable slab rates.

 

Property sale taxation has been simplified with a 12.5% tax rate on long-term capital gains, though indexation benefits have been removed. The TDS structure has been streamlined, with various 5% rates merged into 2%, and e-commerce operators TDS reduced to 0.1%.

 

A significant change in assessment procedures allows for a five-year reopening window for cases where escaped income exceeds Rs50 lakh. The Vivad se Vishwas Scheme, aimed at resolving tax disputes was extended to 31 January 2025, requiring 100% disputed tax payment before the deadline and 110% for declarations made after 1 February 2025. This scheme covers disputes pending as of 22 July 2024.

 

Under the new tax regime, several deductions remain available to taxpayers. These include the standard deduction of Rs75,000, employer NPS contributions up to Rs2 lakh, Agniveer Corpus Fund contributions, and deductions for businesses adding new employees. Senior citizens benefit from a basic exemption limit of Rs7 lakh. However, it's important to note that previously available deductions like House Rent Allowance have been discontinued under the new regime, marking a significant shift in tax planning strategies for the upcoming filing season.