- By Aditya Pratap Singh
- Mon, 31 Mar 2025 03:12 PM (IST)
- Source:JND
Income Tax Rules Changing From April 1: Several new tax and investment regulations are scheduled to go into effect on April 1, 2025, as the fiscal year draws to a close. Significant adjustments to financial policies and income tax structures will now be made as a result of the announcements made by Finance Minister Nirmala Sitharaman in the Union Budget 2025. At its next monetary policy meeting, the Reserve Bank of India (RBI) is also anticipated to announce interest rate changes. Taxpayers, investors, and those who intend to take out loans will all be directly impacted by these developments. This is a thorough analysis of the significant financial shifts that occurred in April 2025.
No Tax Up To 12 Lakh Income
The government has introduced a significant relief for taxpayers to make the new income tax regime more appealing. Individuals making up to Rs 12 lakh per year will not be required to pay income tax as of April 1, 2025. Additionally, because of the relevant deductions, salaried workers earning up to Rs 12.75 lakh annually will also not be subject to taxes. For the upcoming fiscal year 2025–2026, taxpayers will benefit more from the new system because no changes have been announced for the previous tax regime.
Revised Income tax Slab
Under the new system, the Finance Minister also proposed changes to the tax slabs. People who make up to Rs 4 lakh annually will no longer be required to pay taxes. People who make between Rs 4 lakh and Rs 8 lakh will pay 5% tax, while those who make between Rs 8 lakh and Rs 12 lakh will pay 10% tax. 15% tax will be applied to earnings between Rs 12 lakh and Rs 16 lakh, and 20% tax will be applied to earnings between Rs 16 lakh and Rs 20 lakh. Earnings between Rs 20 lakh and Rs 24 lakh are subject to a 25% tax rate, while those making over Rs 24 lakh are subject to a 30% tax rate.
The government's push for the new tax structure is further supported by the fact that the old regime's tax slabs remain unchanged.
RBI MPC Ahead
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) will meet from April 7 to April 9, 2025. A possible interest rate cut is one of the major policy changes that RBI Governor Sanjay Malhotra is anticipated to announce during this meeting. The RBI had already reduced the repo rate by 0.25% in February 2025, from 6.5% to 6.25%. Those who intend to borrow money will benefit from lower interest rates on home and auto loans if additional rate reductions are announced.
Specialised Investment Funds Introduces
The launch of Specialized Investment Funds (SIF), a new investment category authorized by the Securities and Exchange Board of India (SEBI), represents a substantial shift in the investment industry. Mutual fund schemes and conventional Portfolio Management Services (PMS) are not included in this category. One of SIF's main characteristics is that it requires a minimum investment of Rs 10 lakh, with derivatives accounting for at least 25% of the fund's capital. SIF will enable more varied and strategic investment approaches than mutual funds, which mainly use derivatives for hedging. High-net-worth individuals and institutional investors seeking specialized portfolio strategies are the target audience for this new investment category.