Income Tax Act 2025,
explained in simple English
India rewrote its tax law after 65 years. Fewer sections, plain language, and one new idea — the "Tax Year". Every rule here comes with real, worked examples.
What Changed? → Tax Calculator Community2026–27
FY + AY are history. One Tax Year runs 1 Apr 2026 → 31 Mar 2027.
Decode the Tax Year →The first draft bill was tabled in the Lok Sabha and referred to a Select Committee.
After the Committee's report, the revised "Income Tax (No. 2) Bill 2025" cleared both Houses.
It formally became the Income-tax Act, 2025.
The 1961 Act stands repealed (Section 536 — repeal & savings). Tax Year 2026-27 is the first year under the new law.
All income earned from 1 April 2026 is governed by the new Act.
The single most confusing part of the switch:
Pending notices, rights & appeals under the 1961 Act continue under the old law (Sec 536) — nothing is erased.
New vs old regime, side by side, in 30 seconds. Runs entirely in your browser.
Calculate → §Type an old section (80C, 139, 192…) — get its new 2025 number instantly. 30 mappings.
Map a section → AaUnexplained jargon, translated — 24 tax terms decoded in plain English.
Open glossary →New vs old rates, standard deduction, rebate & cess — full calculations.
Breakeven tables + a 30-second decision framework for TY 2026-27.
10 legal ways — 123 (80C), 124 (80D), NPS, HRA, home loan & moves.
Status check, timelines & the 6 real fixes when your refund is stuck.
Rebate wipes out ₹32,500. Zero TDS, ≈₹78k in-hand.
Inside the rebate line. Why the real ceiling is ₹12.75L.
Slab-by-slab working + ₹8,125/month TDS math.
9.6% effective rate. New beats old by ₹1.66L.
No surcharge at ₹49.25L taxable. NPS kicker inside.
Tax Calendar
Every due date, one page
HRA Special Cases
Parents, same city, 80GG
Tax Harvesting
₹1.25L free gains yearly
89(1) Relief
Arrears? Pay less
Standard deduction ₹75,000, the least-of-3 HRA formula, and the new city list — Bengaluru, Hyderabad, Pune, Ahmedabad now get the 50% cap too.
Full guide →Ask questions, share what worked for you, learn from fellow taxpayers. Regime dilemmas, refund troubles, ITR doubts — discuss it all.
📚 Complete Tax Guide Library — every guide on TaxSetu (FY 2026-27)
Can't find a topic? Start anywhere — every guide below is interlinked. Income tax slabs, 87A rebate, new vs old regime, 80C deductions, HRA, TDS rates, ITR filing, capital gains, NRI tax and Hindi guides: 80+ pages in plain English with worked examples, updated for Tax Year 2026-27.
Start here: new law, slabs & regime
- Income Tax Act 1961 vs 2025 — 6 big changes
- Tax Year vs Assessment Year — FY/AY are history
- Income tax slabs FY 2026-27 — new vs old rates
- 87A rebate: ₹12 lakh tax-free — how zero-tax works
- New vs old regime — 30-second picker
- New-regime survival list — 25 items compared
- Income tax calculator — compare in 30 seconds
- Tax calendar 2026-27 — every due date
- Tax news & updates — dated changelog
- Regime wizard — 60-second verdict
Salary, HRA, allowances & first job
- Salary tax + HRA exemption — 8 metros at 50%
- ₹10L salary → ₹0 tax — full calculation
- ₹12L salary → ₹0 tax — ₹12.75L ceiling
- ₹15L salary → ₹97,500 — slab-by-slab
- ₹20L salary → ₹1,92,400 — new beats old
- ₹50L salary → ₹10,99,800 — surcharge line
- HRA special cases — parents, same city, 80GG
- Allowances old vs new — LTA, Sodexo, car
- Gratuity ₹20L, leave ₹25L — VRS, commutation
- 89(1) arrears relief — formula + Form 10E
- Employee forms — 12BB, 10E, 15G/15H
- First job guide — CTC vs in-hand
- HRA calculator — least-of-3 + 8 metros
- Gratuity calculator — formula + ₹20L cap
- ₹18L tax story — full computation
House property, rent & home loans
- House property + home loan — interest rules
- Rental income tax — 30% + ₹2L cap
- TDS on rent — 194-I/194-IB, Form 26QC
- Property buyer TDS — 194-IA 1%, 26QB
- Rent receipt generator — print 12 months
Business, freelance & trading
- 44AD/44ADA presumptive — limits + ITR-4
- Freelancer tax — 44ADA, FIRC, GST, YouTube
- F&O + intraday tax — audit, turnover
- Freelancer story — 44ADA wins
Capital gains, mutual funds & gold
- Capital gains masterclass — shares + property
- Mutual fund tax — LTCG/STCG/SIP
- ESOP/RSU tax — perquisite + gains
- Gold tax — SGB exempt, ETF, jewellery
- Save capital gains — 54 vs 54EC vs 54F
- SWP + harvesting — ₹1.25L free yearly
Interest, dividends & other income
- FD/NSC/dividend tax — TDS + 80TTA
- Other sources + crypto — full head guide
- Gift tax + clubbing — ₹50k, minor ₹1,500
- Farm income — exempt + aggregation
- Stipend vs scholarship — students
Deductions & tax saving (80C–80U)
- 80C/80D list — every deduction
- How to save tax — 10 legal ways
- NPS tax benefits — 14% in new regime
- EPF/PPF/VPF — 5-yr rule, 10% TDS
- 80E education loan — no cap, 8 yrs
- 80G donations — ₹2,000 cash rule
- 80DDB/80U/80DD — medical + disability
- 7 80C mistakes — FD, NSC, ULIP traps
TDS, TCS & certificates
- TDS rate chart — all sections, FY 2026-27
- 16 vs 16A vs 16B vs 16C — compared
- Form 16 explained — line by line
- Deductor guide — TAN, 24Q, 194T
- TCS on LRS — 2% vs 20%
- AIS vs 26AS — mismatch fix
ITR filing, advance tax, refunds & notices
- ITR filing + due dates — full guide
- Which ITR form? — ITR-1/2/3/4 picker
- Advance tax — quarters + 234B/C
- Advance-tax tool — quarterly schedule
- Belated/revised/ITR-U — fees + dates
- 154 vs appeal — fix after filing
- Refund delayed? — status + 6 fixes
- Notices + 139(9) — how to reply
- Where to file ITR — portal vs apps
- ITR checklist — tick + print
- Fake-claim alert — 200% penalty
NRI, HUF, seniors & community
- NRI taxation — full guide
- DTAA + 15CA/CB — no double tax
- HUF taxation — PAN, slabs, partition
- Senior citizens — 80TTB + slabs
- Retiree tax story — pension + FD
- Community — ask + discuss
New Act sections, tools & Hindi guides
- Section mapper — old → new numbers
- Sec 123 (new 80C) — ₹1.5L guide
- Sec 156 (new 87A) — ₹12L rebate
- Sec 202 (new 115BAC) — regime rules
- Sec 263 (new 139) — ITR deadlines
- Sec 392/393 (new TDS) — full map
- Sec 428 (new 234F) — late fee
- Glossary — 41 terms decoded
- Act 2025 FAQs — 20 answers
- Income tax slab (हिंदी) — स्लैब दरें
- Naya vs purana regime (हिंदी) — तुलना
- ₹12 lakh tax-free (हिंदी) — रिबेट
- ITR kaise bhare (हिंदी) — फॉर्म + e-verify
- TDS kya hai (हिंदी) — दरें + रिफंड
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