Income-tax Act, 2025
The modernized, direct-tax codification consolidating assessment procedures, Section 115BAC default regime, digital asset taxation, and global minimum tax provisions.
Income-tax Act, 2025
Chapter I: Preliminary & Key Definitions The Income-tax Act, 2025 enacts a streamlined direct tax structure designed to minimize ambiguity, reduce repetitive litigation, and establish Section 115BAC as the primary assessment paradigm for all non-corporate assessees.
Key Statutory Pillars: 1. **Universal Concessional Tax Paradigm (Section 115BAC)**: 6 progressive tax slabs starting from Nil up to ₹3,00,000 to 30% above ₹15,00,000 with a standard deduction of ₹75,000 for salaried employees and full Section 87A rebate up to ₹7,00,000 net taxable income. 2. **Simplified Corporate Taxation (Section 115BAA & 115BAB)**: Standard effective concessional rate of 25.17% (22% basic + 10% surcharge + 4% cess) for domestic operational entities. 3. **Automated Faceless Assessment & Re-assessment Framework**: Scrutiny time-limits capped strictly at 3 years for ordinary escapement and 5 years for concealed assets exceeding ₹50 Lakhs. 4. **Digital & Virtual Digital Asset (VDA) Tax**: Flat 30% rate under Section 115BBH with no set-off against ordinary business losses.
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Statutory Details
The information, acts, rules, circulars, notifications, tax rates, and calculators provided in this Knowledge Bank are intended strictly for general educational and informational purposes. Laws, statutory rules, rate matrices, procedures, and statutory due dates may change through subsequent government notifications, official circulars, parliamentary amendments, or judicial rulings.
Taxpayers are strongly advised to verify the latest official gazette publication or consult a qualified Chartered Accountant / legal counsel before executing financial decisions or statutory submissions based on this data.