Welcome Income Tax Act 2025

Here are all the major updates: 📊 Capital Gains on Buyback of Shares: Buyback proceeds are no longer taxed as Dividend Income, they are now taxable as Capital Gains in the hands of shareholders! Additionally, a flat 12% surcharge applies on these capital gains, irrespective of income level. 📅 Return Filing Deadlines: 🔹 Revised Return deadline extended from 31st December to 31st March, but a nominal fee applies if filed after 31st December. 🔹 Belated Return deadline stays 31st December, no change there. 🔹 For non-audit businesses, ITR due date extended from 31st July to 31st August. For individuals, it remains 31st July. ✈️ TCS Rate Cuts: 🔹 TCS on Overseas Tour Packages: reduced to a flat 2% (earlier 5%/20%). 🔹 TCS on LRS remittances for Education and Health: reduced to 2% (earlier 5%). 🏠 HRA: 8 Cities Now at 50%: Bengaluru, Hyderabad, Pune, and Ahmedabad have been added to the 50% HRA exemption list! Earlier, only Delhi, Mumbai, Kolkata, and Chennai qualified. If you live in any of these 8 cities, your HRA exemption goes up from 40% to 50% of salary. (Note: HRA exemption is available only under the Old Tax Regime. Also, landlord-tenant relationship disclosure is now stricter — claiming HRA while living in your parents' house is no longer easy!) 🍽️ Meal Vouchers: Tax-free meal voucher limit increased from ₹50/meal to ₹200/meal, saving up to ₹24,000 in taxes annually! (Old Regime only) 💳 Interest-Free Loans from Employer: Exemption limit increased from ₹20,000 to ₹2,00,000! (Both Regimes) 👨‍🎓 Children's Education & Hostel Allowance: Education Allowance: ₹100/month → ₹3,000/month. Hostel Allowance: ₹300/month → ₹9,000/month. (Old Regime only) 🎁 Gift Vouchers from Employer: Tax-free limit increased from ₹5,000 to ₹15,000 per year! (Both Regimes) 🚌 Transport Allowance: Exemption now 70% capped at ₹25,000, up from the earlier cap of ₹10,000. Save this post for your quick revision, and share it with your CA friends who need to stay updated! 📚💼 #TaxUpdates #IncomeTaxAct2025 #FinTaxByNishant #CAStudents #CAIntermediate