Important Changes in Tax Proposals in Budget 2025
1. In new tax regime, tax rate slabs of NIL, 5%,10%, 15%, 25% and 30% have been widened with spacing of 4 lacs ranging from 4 lacs to 24 lacs as compared to earlier spacing of 3 lacs form 3 lacs to 15 lacs. 2. Eligibility of Rebate under section 87A increased from 7 lacs to 12 lacs and rebate of 60,000 shall be available on income up to 12 lacs. Thus tax shall be reduced to NIL under new tax regime, if income is up to 12 lacs 3. Rebate u/s 87A shall not be available for income taxed at special rates of tax like tax on short term or long term capital gain 4. Registration of trus t already granted shall not be cancelled only because application for registration of trust is not complete. 5. * Period of renewal of registration for Trusts* having income below Rs. 5 crores increased from 5 years to 10 years 6. Limit of *substantial contribution* for imparting benefit to the contributor by the trust increased from 50 thousands for relevant previous to Rs. 1 lakh. Also aggregate ...