Tax season is here, and with it come crucial changes to income tax rules for 2025. Stay ahead by understanding these updates to maximize savings:
1. New Tax Rates for Capital Gains
The government has increased the rates for short-term and long-term capital gains, but with added benefits:
Type of Capital Gain | Old Tax Rate | New Tax Rate |
STCG (Equity, Mutual Funds) | 15% | 20% |
LTCG (All Assets) | 10% | 12.5% |
Additionally, the LTCG exemption limit has risen from ₹1 lakh to ₹1.25 lakh, benefiting long-term investors.
2. Adjusted Holding Periods for Investments
Capital gains holding periods have been redefined to align with global standards:
Asset Type | Old Holding Period (Months) | New Holding Period (Months) |
Listed Securities | >12 | >12 |
Unlisted Securities | >24 | >24 |
Pro Tip: Plan your investments carefully to take advantage of new LTCG exemptions.
3. Increased Standard Deduction for Salaried Taxpayers
The updated standard deduction limits provide significant tax relief:
Category | Old Limit (₹) | New Limit (₹) |
Salaried Individuals | 50,000 | 75,000 |
Family Pensioners | 15,000 | 25,000 |
Did You Know? The Corporate NPS now offers tax benefits up to 14% of employer contributions, encouraging better retirement savings.
Wrapping Up
These tax reforms aim to simplify compliance and encourage financial discipline. Review these updates and adjust your tax planning to make the most of them. By staying proactive, you can ensure significant savings in the year ahead.