Income Tax Act, 2025: Filing taxes is about to get a lot simpler
The new Income Tax Act, effective from April 2025, is here to make tax season less stressful.
It slashes the old law nearly in half—fewer sections and chapters—without changing your tax rates.
Parliament passed it in August, aiming for easier rules and fewer headaches.
What's actually changing?
Forget juggling "previous year" and "assessment year"—there's now just one "tax year" to keep track of.
The language is clearer and the structure more straightforward, so you won't need to decode legal jargon or hop between endless cross-references.
How does this help you at filing time?
Starting this financial year, returns will follow the new single-year system.
The basic exemption stays at ₹12 lakh, and you can still get TDS refunds even if you file late—no penalty charges.
All these tweaks are designed to make life a little easier for anyone who files taxes (yes, even students or freelancers).