Understand the key highlights of the Income Tax Act 2025, including new tax slabs, extended filing deadlines, and digital compliance essentials.
The government recently notified the Income Tax Act, 2025, which will take effect from 1st April 2026. This update aims to simplify tax compliance and make life easier for individuals and businesses alike.
1. New Income Tax Slabs
The new tax regime has been made simpler. For example:
- Income up to ₹4 lakh — No tax
- ₹4 to ₹8 lakh — 5%
- ₹8 to ₹12 lakh — 10%, and so on.
This structure is designed to encourage people to shift to the new regime while keeping filing easy.
2. Extended Filing Deadlines
The last date to file your Income Tax Return (ITR) for AY 2025–26 has been extended to 15th September 2025. It gives more time to reconcile accounts, check TDS details, and prepare accurate filings through Tally.
3. Focus on Digital Compliance
The government continues to promote paperless and automated tax processes. With e-verification, digital signatures, and online assessments, Tally integration can make compliance much faster.
4. What You Should Do
- Update your TDS rates and income tax settings in Tally.
- Compare both old and new tax regimes for your clients or business.
- Keep all ledgers and books reconciled before the filing period.
Final Word
Tax rules may change, but one thing doesn’t—accuracy matters. Using Tally with updated configurations ensures your returns, reports, and calculations stay compliant and stress-free.