1. Income Tax Slabs for FY 2024-25

• The new tax regime continues to be an option, with no income tax up to ₹3 lakh. From ₹3 lakh to ₹6 lakh, the tax is 5%, ₹6 lakh to ₹9 lakh at 10%, ₹9 lakh to ₹12 lakh at 15%, ₹12 lakh to ₹15 lakh at 20%, and above ₹15 lakh at 30%.
• The old tax regime still allows deductions and exemptions like 80C, 80D, etc.

2. Tax on Virtual Digital Assets (VDAs)

• Tax on crypto and other VDAs: Income from virtual digital assets such as cryptocurrency is now taxed at a flat rate of 30%. Additionally, TDS (Tax Deducted at Source) is levied at 1% on transactions exceeding ₹10,000 in a financial year.

3. Revised Tax Filing Process

• The e-filing portal has been updated for a smoother filing experience. New features include faster processing times, the introduction of AI in helping identify errors, and simplified forms for taxpayers.

4. Changes in Deductions

• Section 80C: The cap on deductions under Section 80C remains at ₹1.5 lakh for the financial year, covering investments in PPF, ELSS, NSC, and more.
• Section 80D: Health insurance premiums continue to be eligible for deductions, with an upper limit of ₹25,000 for individual taxpayers and ₹50,000 for senior citizens.

5. Corporate Tax Updates

• Corporate Tax Rate: The corporate tax rate continues at 22% for existing companies under the new tax regime and 15% for newly established manufacturing companies.
• Dividend Distribution Tax: Companies paying dividends to shareholders are still subject to withholding tax.

6. Tax Audit Changes

• The threshold for tax audits has been increased to ₹10 crore for businesses that only conduct digital transactions, provided at least 95% of their receipts and payments are through digital means.

7. Advance Tax and Penalties

• Advance Tax Payment: The payment schedule remains unchanged, and taxpayers are expected to pay taxes in four installments: 15% by June 15, 45% by September 15, 75% by December 15, and 100% by March 15.
• Penalty for Late Filing: Penalty for late filing has been increased for individuals with income above ₹5 lakh.

8. Tax Benefits for Home Buyers

• Interest Deduction: Under Section 24(b), taxpayers can claim deductions of up to ₹2 lakh for interest on home loans.
• Section 80EEA: For affordable housing, additional benefits are provided under Section 80EEA, allowing a deduction of ₹1.5 lakh.

9. Simplified Tax Forms

• The ITR forms for individuals have been simplified, and the government continues to focus on expanding e-filing to make it accessible for more people. The forms for the year have incorporated various changes related to income from VDA, etc.