Rupee Central

From April 1, 2026, India's six-decade-old Income Tax Act of 1961 has been replaced by the new Income Tax Act, 2025. While the core tax rates remain the same, the way you file returns, claim deductions, and understand your salary structure has changed significantly. This guide covers every change that matters for salaried employees — what is different, what stays the same, and what you need to do about it. The Big Picture: What Changed and What Did Not Area Changed? Details Tax Slabs No change Same slabs as announced in Budget 2025 Tax Rates No change Rates remain identical under both regimes Standard Deduction No change ₹75,000 for salaried individuals (new regime) Tax Law Itself Replaced entirely Income Tax Act 1961 → Income Tax Act 2025 Terminology Changed "Financial Year" + "Assessment Year" → single "Tax Year" HRA Exemption Expanded 50% HRA now covers 8 cities instead of 4 Salary Structure Changed B...

Starting April 1, 2026 , India's entire income tax system is getting a makeover. The government is replacing the 60-year-old Income Tax Act of 1961 with the brand-new Income Tax Act 2025 — and whether you're a salaried employee, freelancer, or small business owner, these changes will affect how you file, how much you pay, and how you plan your finances going forward. Don't worry — this isn't just a legal rewrite buried in Parliament documents. There are real, practical changes that matter to everyday taxpayers. Here's what you need to know in plain language. Why Is the Tax Law Changing? India's current Income Tax Act was written in 1961 — when there were no computers, no UPI, and no digital economy. Over the decades, hundreds of amendments turned it into an 819-section maze that even tax professionals struggled with. The new Income Tax Act 2025 cuts this down to 536 sections , reduces chapters from 47 to 23, and uses simpler language. The goal is ...