{"id":4829,"date":"2025-01-21T18:54:13","date_gmt":"2025-01-21T18:54:13","guid":{"rendered":"https:\/\/1finance.co.in\/magazine\/?post_type=blog&#038;p=4829"},"modified":"2025-09-12T17:07:25","modified_gmt":"2025-09-12T11:37:25","slug":"15-income-tax-rule-changes-in-2024-that-will-impact-your-itr-filing-in-2025","status":"publish","type":"blog","link":"https:\/\/1finance.co.in\/1f-dashboard\/blog\/15-income-tax-rule-changes-in-2024-that-will-impact-your-itr-filing-in-2025\/","title":{"rendered":"13 Income Tax Rule Changes in 2024 That Will Impact Your ITR Filing in 2025"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The income tax reforms announced in 2024 have introduced a range of updates that will influence your<\/span> <a href=\"https:\/\/1finance.co.in\/itr-filing\"><span style=\"font-weight: 400;\">Income Tax Return<\/span><\/a><span style=\"font-weight: 400;\"> (ITR) filing in 2025. These changes focus on simplifying compliance, promoting fairness, and encouraging taxpayers to embrace the new tax regime. Let\u2019s delve deeper into each of the 13 changes to understand their impact.<\/span><\/p>\n<h2>New Income Tax Slabs<\/h2>\n<p><span style=\"font-weight: 400;\">The revised tax slabs in the new regime are designed to reduce the tax burden for many taxpayers. With no tax up to \u20b93,00,000, this regime especially benefits low and middle-income earners. The new slabs are:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Income Range (\u20b9)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Tax Rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u20b90\u20133,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u20b93,00,001\u20137,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u20b97,00,001\u201310,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u20b910,00,001\u201312,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u20b912,00,001\u201315,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u20b915,00,001 and above<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">For taxpayers earning \u20b915,00,000 annually, this structure results in savings of up to \u20b917,500 compared to the earlier tax slab rates in the new\u00a0 regime. However, you must forgo certain exemptions and deductions, like those under Section 80C, when opting for the<\/span> <a href=\"https:\/\/1finance.co.in\/blog\/benefit-of-opting-for-the-new-tax-regime\/\"><span style=\"font-weight: 400;\">new regime<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2>Standard Deduction Limit Increased<\/h2>\n<p><span style=\"font-weight: 400;\">The standard deduction provides relief by reducing taxable income. In 2024, the limits have been raised under the new regime:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Salaried individuals can now claim \u20b975,000, up from \u20b950,000.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Family pensioners enjoy a revised deduction of \u20b925,000, previously \u20b915,000.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This enhancement is intended to make the new regime more appealing, but the old regime\u2019s standard deduction remains unchanged. Taxpayers must assess their situation to decide which regime offers more benefits.<\/span><\/p>\n<h2>Higher Deduction for Employer&#8217;s NPS Contribution<\/h2>\n<p><span style=\"font-weight: 400;\">Under Section 80CCD(2), the employer\u2019s contribution to the<\/span> <a href=\"https:\/\/1finance.co.in\/blog\/all-about-nps-vatsalya\/\"><span style=\"font-weight: 400;\">National Pension System (NPS)<\/span><\/a><span style=\"font-weight: 400;\"> is now eligible for a deduction of 14% of basic salary, an increase from 10%.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This increase is exclusive to the new tax regime.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It boosts retirement savings for employees in private and public sectors, incentivising long-term financial security.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Employers contributing to NPS must ensure compliance with the new rate, benefiting employees through additional tax savings.<\/span><\/p>\n<h2>Revised Tax Rates for LTCG and STCG<\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Short-Term Capital Gains (STCG): Tax on equity investments has been raised to 20%, up from 15%. This may impact frequent traders and short-term investors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Long-Term Capital Gains (LTCG): Gains on all assets are now taxed at 12.5%.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">However, the option to calculate <\/span><a href=\"https:\/\/1finance.co.in\/blog\/income-from-house-property-its-taxation\/\"><span style=\"font-weight: 400;\">Long-Term Capital Gains (LTCG)<\/span><\/a><span style=\"font-weight: 400;\"> on house property with or without indexation, allows taxpayers to select the method that results in the most favorable outcome for them.<\/span><\/p>\n<h2>New Holding Period Rules for Capital Gains<\/h2>\n<p><span style=\"font-weight: 400;\">The definition of \u201clong-term\u201d investments has been revised to align with global standards:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Listed securities: Must be held for at least 12 months.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Unlisted securities: Require a holding period of 24 months.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Investors selling assets before these durations will pay short-term capital gains tax, which is generally higher. This change emphasises long-term wealth creation over speculative trading.<\/span><\/p>\n<h2>Rationalised TDS Rates<\/h2>\n<p><span style=\"font-weight: 400;\">From October 1, 2024, a uniform<\/span> <a href=\"https:\/\/1finance.co.in\/blog\/new-tds-changes-effective-from-october-1-2024-what-you-need-to-know\/\"><span style=\"font-weight: 400;\">TDS rate of 2<\/span><\/a><span style=\"font-weight: 400;\">% applies to various payments, simplifying compliance for businesses and individuals. Key sections impacted include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">194DA: Payments under life insurance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">194G: Commission on lottery tickets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">194H: Brokerage and commission.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">194M: Payments to contractors and professionals.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">From April 1, 2025, TDS rate of 2% will apply for payment of Insurance Commission under section 194D.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This uniformity reduces confusion while ensuring streamlined tax collection.<\/span><\/p>\n<h2>TCS Credit Transfer<\/h2>\n<p><span style=\"font-weight: 400;\">The ability to transfer TCS credits between individuals is a game-changer for families.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For instance, parents paying TCS on a child\u2019s tuition fees abroad can transfer the credit to the child.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This ensures better utilisation of tax credits and reduces financial strain on families.<\/span><\/li>\n<\/ul>\n<h2>Tax on Share Buybacks<\/h2>\n<p><span style=\"font-weight: 400;\">Share buybacks will now be taxed in the hands of shareholders at their applicable slab rate.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Previously, companies used to bear this tax burden.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The change aligns the taxation of buybacks with dividend taxation, promoting consistency in tax policies.<\/span><\/li>\n<\/ul>\n<h2>TCS on Luxury Goods<\/h2>\n<p><span style=\"font-weight: 400;\">A Tax Collected at Source (TCS) of 1%\u00a0 will now apply to purchases of luxury goods exceeding \u20b910 lakh.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This includes luxury cars, designer jewellery, and premium electronics.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Effective January 1, 2025, the rule targets high-value transactions to ensure tax compliance.<\/span><\/li>\n<\/ul>\n<h2>TDS on RBI Floating Rate Bonds<\/h2>\n<p><span style=\"font-weight: 400;\">Interest income exceeding \u20b910,000 per annum\u00a0 from RBI floating rate bonds will attract TDS starting October 1, 2024.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This rule ensures parity in tax treatment across various fixed-income instruments.<\/span><\/li>\n<\/ul>\n<h2>Vivad se Vishwas 2.0 Scheme<\/h2>\n<p><span style=\"font-weight: 400;\">The second phase of this dispute resolution scheme allows taxpayers to settle pending litigation with the Income Tax Department.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It reduces the burden of legal costs and offers a one-time opportunity to resolve disputes.<\/span><\/li>\n<\/ul>\n<h2>Mandatory Aadhaar Number<\/h2>\n<p><span style=\"font-weight: 400;\">From October 1, 2024, Aadhaar enrollment numbers will no longer be valid for filing ITRs or applying for PAN.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Taxpayers must provide their Aadhaar number to comply with this rule.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This change ensures transparency and improves tracking of tax compliance.<\/span><\/li>\n<\/ul>\n<h2>Revised Time Limit for Reopening Old ITRs<\/h2>\n<p><span style=\"font-weight: 400;\">The time limit <\/span><span style=\"font-weight: 400;\">for reopening old ITRs has been reduced from 10 years to 5 years,<\/span><span style=\"font-weight: 400;\"> where the income escaping assessment exceeds \u20b950 lakh.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This change balances the need for scrutiny with the taxpayers\u2019 right to timely resolution.<\/span><\/li>\n<\/ul>\n<h2>Conclusion<\/h2>\n<p><span style=\"font-weight: 400;\">The 2024 tax reforms aim to simplify compliance, promote fairness, and encourage adoption of the new tax regime. While many changes bring opportunities for savings, others demand careful planning to mitigate higher tax liabilities. Stay informed, plan your taxes wisely, and consult a tax advisor to make the most of these updates.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Start preparing now to ensure a seamless <a href=\"https:\/\/1finance.co.in\/itr-filing\">ITR filing<\/a> experience in 2025.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The income tax reforms announced in 2024 have introduced a range of updates that will influence your Income Tax Return (ITR) filing in 2025. These changes focus on simplifying compliance, promoting fairness, and encouraging taxpayers to embrace the new tax regime. Let\u2019s delve deeper into each of the 13 changes to understand their impact. New [&hellip;]<\/p>\n","protected":false},"featured_media":4831,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_updated_date":""},"blog-category":[391,285],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.11 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>15 Tax Rule Changes Impacting ITR Filing in 2025<\/title>\n<meta name=\"description\" content=\"The 2024 tax reforms aim to simplify compliance, promote fairness, and encourage adoption of the new tax regime.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/1finance.co.in\/blog\/15-income-tax-rule-changes-in-2024-that-will-impact-your-itr-filing-in-2025\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"15 Tax Rule Changes Impacting ITR Filing in 2025\" \/>\n<meta property=\"og:description\" content=\"The 2024 tax reforms aim to simplify compliance, promote fairness, and encourage adoption of the new tax regime.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/1finance.co.in\/blog\/15-income-tax-rule-changes-in-2024-that-will-impact-your-itr-filing-in-2025\/\" \/>\n<meta property=\"og:site_name\" content=\"Blogs\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-12T11:37:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/imaages-hosting-1fin.s3.ap-south-1.amazonaws.com\/assets\/ogimage\/Blog.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"670\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@1FinanceHQ\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/1finance.co.in\/blog\/15-income-tax-rule-changes-in-2024-that-will-impact-your-itr-filing-in-2025\/\",\"url\":\"https:\/\/1finance.co.in\/blog\/15-income-tax-rule-changes-in-2024-that-will-impact-your-itr-filing-in-2025\/\",\"name\":\"15 Tax Rule Changes Impacting ITR Filing in 2025\",\"isPartOf\":{\"@id\":\"https:\/\/1finance.co.in\/blog\/#website\"},\"datePublished\":\"2025-01-21T18:54:13+00:00\",\"dateModified\":\"2025-09-12T11:37:25+00:00\",\"description\":\"The 2024 tax reforms aim to simplify compliance, promote fairness, and encourage adoption of the new tax regime.\",\"breadcrumb\":{\"@id\":\"https:\/\/1finance.co.in\/blog\/15-income-tax-rule-changes-in-2024-that-will-impact-your-itr-filing-in-2025\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/1finance.co.in\/blog\/15-income-tax-rule-changes-in-2024-that-will-impact-your-itr-filing-in-2025\/\"]}],\"primaryImageOfPage\":{\"@id\":\"\"},\"image\":{\"@id\":\"\"}},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/1finance.co.in\/blog\/15-income-tax-rule-changes-in-2024-that-will-impact-your-itr-filing-in-2025\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/1finance.co.in\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Blogs\",\"item\":\"https:\/\/1finance.co.in\/blog\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"13 Income Tax Rule Changes in 2024 That Will Impact Your ITR Filing in 2025\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/1finance.co.in\/#website\",\"url\":\"https:\/\/1finance.co.in\/\",\"name\":\"1 Finance\",\"description\":\"Our single focus, to get you to re-imagine your Personal Finance What does this mean ? 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