New Era for Indian Taxpayers: Income Tax Act 2025 Comes Into Effect with Major Exemptions

The News:

As the new financial year kicks off, the Indian landscape sees a historic shift with the Income Tax Act 2025 officially replacing the decades-old 1961 Act. Under the new regime, individuals earning up to ₹12 lakh annually will now pay zero tax, thanks to an enhanced rebate under Section 87A. The transition also streamlines administrative processes, replacing the traditional “Assessment Year” and “Previous Year” terminology with a unified “Tax Year” to simplify filings for the common citizen.