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Taxation Central Ministry of Finance Income Tax Act, 1961

Finance Act, 2025

29-Mar-2025 | CG-DL-E-29032025-262125

Government of India has passed the Finance Act, 2025,which come into effect as follows: Sections 2 to 91, 104 to 120, 125, and 136 will be effective from 1st April 2025, while Sections 121 to 124 and 126 to 134 will be effective from a later date.

Highlights of the Act:

- Under the new Income Tax regime, the rebate limit under section 87A has increased from 7 lakh to 12 lakh. This means individuals earning up to 12 lakh will not have to pay income tax.

- The new Income Tax regime now has 7 tax slabs: 0-4 lakh, 4-8 lakh, 8-12 lakh, 12-16 lakh, 16-20 lakh, 20-24 lakh, and above 24 lakh. This means income up to 4 lakh is tax-free (up from 3 lakh), and the highest tax rate applies to income above 24 lakh (previously 15 lakh)

- It will be mandatory for all GST assesses for the generation of e-way bills and e-invoices. This required login using a username, password, and OTP (sent to the registered mobile number, Sandes app, or similar platforms.

For more information, please refer to the specified document.

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