New I-T Rules: Simpler processes, higher deductions for the salaried, Pg4

Key Highlights:

• The Income-tax Act, 2025 will be enforced from April 1, 2026, with new Income-tax Rules, 2026 released by the CBDT.
• Thresholds for mandatory PAN quoting have been increased for transactions like cash deposits/withdrawals (above Rs 10 lakh), motor vehicle purchases (above Rs 5 lakh), and property transactions (above Rs 20 lakh).
• A single unified challan-cum-statement will replace separate forms for TDS, with filing to be done using PAN.
• Form 130 will replace Form 16 for salaried employees, providing a detailed summary of salary, tax deducted, and deductions.
• HRA expansion includes Bengaluru, Hyderabad, Pune, and Ahmedabad, at par with metro cities.

Detailed Insights:

Income-tax_Act_2025_202603270726.jpeg

Key Concepts Involved:

• PAN (Permanent Account Number): A unique identification number for tracking financial transactions.
• TDS (Tax Deducted at Source): Tax deducted from payments at the time of making the payment.
• HRA (House Rent Allowance): An allowance given by employers to employees to meet the cost of rented accommodation.