Key Changes Under Income Tax Act 2025 — What Businesses Must Know

The Income Tax Act 2025, effective from 1 April 2026, replaces the Income Tax Act 1961 with a restructured, simplified framework. Here are the most significant changes every business and individual taxpayer must be aware of — explained by the team at Jain Bafna & Associates, Chennai.

1. Default Tax Regime

The new tax regime is now the default regime under the ITA 2025. Taxpayers who wish to continue under the old regime (with deductions like 80C, HRA, home loan interest) must explicitly opt out each year when filing their ITR.

2. Revised Capital Gains Tax Structure

• LTCG on listed equity/equity MFs: 12.5% (above ₹1.25 lakh exemption) — no indexation
• STCG on listed equity/equity MFs: 20% (increased from 15%)
• LTCG on immovable property: 12.5% without indexation
• LTCG on debt funds/bonds: Taxed at slab rates (24-month holding period for LTCG)

3. Form 145 and 146 Replace 15CA and 15CB

For foreign remittances, Form 15CA is replaced by Form 145 and Form 15CB is replaced by Form 146 under the ITA 2025. The compliance procedure remains similar — Form 146 (CA certificate) is obtained first, then Form 145 is filed online before remittance.

4. Updated Presumptive Taxation Limits

• Section 44AD (business): Turnover limit increased to ₹3 crore (₹3.75 crore if 95%+ digital)
• Section 44ADA (professionals): Gross receipts limit increased to ₹75 lakh
• Section 44AE (transport): Presumptive income per heavy goods vehicle increased to ₹1,00,000/month

5. TDS Rate Rationalisation

Section 194J TDS on technical services reduced to 2% (professional services remains 10%). Section 194-O (e-commerce TDS) rate reduced to 0.1%. Section 194Q (TDS on purchase of goods) threshold increased to ₹60 lakh.

About JBA: Jain Bafna & Associates is an ICAI-member Chartered Accountancy firm (FRN 001226S) with offices in Chennai (Thousand Lights) and Lucknow. Established in 1982. Contact us to understand how the ITA 2025 impacts your situation.