Personal Income Tax Personal Income Tax Reforms by Finance Bill, 2025

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The Tax Publishers Finance Bill, 2025--Personal Income Tax Personal Income Tax Reforms by Finance Bill, 2025 CA. Nisha Bhandari The Finance Bill, 2025 has proposed to revise tax rates provided in new regime under section 115BAC(1A) from assessment year 2026-27 onwards. The tax rebate provided under section 87A has also been proposed to be enhanced significantly where assessee is chargeable to tax under section 115BAC(1A). The present write-up aims at describing all these personal income-tax returns proposal by the Finance Bill, 2025. 1. Tax rates under new tax regime provided under section 115BAC(1A) revised [W.e.f. assessment year 2026-27] (i) From assessment year 2024-25, section 115BAC (i.e., new regime) has become default regime for an individual or Hindu undivided family or association of persons (other than a co-operative society), or body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2, other than a person who has exercised an option for old tax regime. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Finance Bill, 2025--Personal Income Tax

Personal Income Tax Reforms by Finance Bill, 2025

CA. Nisha Bhandari

The Finance Bill, 2025 has proposed to revise tax rates provided in new regime under section 115BAC(1A) from assessment year 2026-27 onwards. The tax rebate provided under section 87A has also been proposed to be enhanced significantly where assessee is chargeable to tax under section 115BAC(1A). The present write-up aims at describing all these personal income-tax returns proposal by the Finance Bill, 2025.

1. Tax rates under new tax regime provided under section 115BAC(1A) revised [W.e.f. assessment year 2026-27]

(i) From assessment year 2024-25, section 115BAC (i.e., new regime) has become default regime for an individual or Hindu undivided family or association of persons (other than a co-operative society), or body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2, other than a person who has exercised an option for old tax regime.