Income Tax Return 2025: Now with the change in the financial year, the process of filing income tax returns has also changed. From the financial year 2025-26, the new tax system has been implemented in default mode. While filing Income Tax Return (ITR), now the taxpayer will get to see the new income tax regime in default mode.
Option to choose tax regime
If a taxpayer has to pay income tax on the basis of old income tax regime, then he will have to change it and start paying income tax under the old scheme. In this, taxpayers will have the option to choose the tax regime. Those who feel that the old slab is beneficial for them can use the old slab system. CA Ashish Rohatgi and CA Rashmi Gupta said that eligible persons without any business income will have the option to choose the regime for each year. So they can choose the old tax regime in one financial year and the new tax regime in the other year.
You can file ITR under the new regime
He said that if an employer has deducted TDS for his employee under the old system, the employee can file ITR under the new regime if he wants. He said that other things have also changed from April 1.
Changes from April 1
1. Under this, new check verification rules have been implemented to prevent banking fraud. Apart from this, for check payments of more than five thousand rupees, now the check number, date, beneficiary’s name and amount will have to be verified.
2. Also, new features are being added to the Rupay debit card. It will also provide facilities like access to airport lounges, insurance etc. Apart from this, the limit of free transactions from ATM will now be only three times.
3. Rules are also being implemented regarding the minimum balance limit. The maximum limit of TDS deduction for senior citizens has also been increased to Rs 1 lakh. This amount was earlier Rs 50 thousand.
In the new tax regime
There will be no tax payable up to Rs 12 lakh. Also, the time limit for filing updated tax returns will increase from 24 months to 48 months. Along with this, the limit of TDS deduction on rent income for house owners has been increased to six lakh rupees per annum. Earlier it was two lakh forty thousand rupees per annum. TCS (Tax Collected at Source) will be applicable on foreign transactions of more than 10 lakh rupees. Earlier this limit was seven lakh rupees.
Long term capital gain limit will increase
CA Ashish Rohatgi and CA Rashmi Gupta said that as per the Income Tax amendment, from April 1, TDS deduction on dividend income will now be Rs 10,000 per year. Earlier it was five thousand rupees. Along with this, while making changes in capital gains, the limit of long term capital gain exemption has been increased to Rs. 1.25 lakh. Partnership firms will now have to compulsorily deduct TDS on salary and capital inflow to their partners. Earlier this was not applicable.