10 income tax and investment changes from April

april 2, 2025

Images: Shutterstock

Here is a list of investment and income tax changes that took effect on April 1, the first day of the 2025-26 financial year!

The tax rebate has been increased from ₹25,000 to ₹60,000, making income up to ₹12 lakh tax-free under the new regime.

1. Tax rebate

Under the new regime, the basic exemption limit has been increased from ₹3 to ₹4 lakh. Further, the 30% tax rate will be applicable on income of ₹24 lakh and above.

2. Basic exemption limit

The tax deducted at source (TDS) threshold for bank deposits has been increased from ₹40,000 to ₹50,000. For senior citizens, the threshold is ₹1 lakh.

3. TDS

For Unit-Linked Insurance Plans (ULIPs) exceeding the ₹2.5 lakh premium threshold will be considered capital gains and taxed accordingly.

4. ULIP

Salaried individuals and taxpayers can claim additional deductions of ₹50,000 under the old tax regime by contributing to their kids' NPS Vatsalya account.

5. NPS Vatsalya

Taxpayers can now claim nil value on up to two properties irrespective of whether or not they are occupied.

6. Nil value on property

A person can authorise their Digilocker nominees to access their mutual fund and demat account statements upon their demise.

7. Digilocker nominees

SEBI’s Specialized Investment Funds (SIFs) regulation, which have a high entry threshold of ₹10 lakh per investor and offers multiple investment strategies, have come into effect.

8. SIF 

If an investor shifts from an existing mutual fund (MF) scheme to an NFO, the MF distributor will get the lower commission of the two schemes.

9. Commission norm

Mutual fund asset management companies (AMCs) have to deploy funds raised through New Fund Offers (NFOs) within 30 business days from the date of allotment.

10. NFO timeline

7 income tax and personal finance tasks to do in April

Thanks for reading!

See next

Read Now