The Income Tax Act 2025 represents one of the most significant overhauls of India's direct tax legislation in recent decades.
Revised Tax Slabs for Individuals
The new regime introduces rationalised slabs with enhanced exemption limits. The nil-tax threshold has been raised, providing relief to middle-income taxpayers.
Implications for NGOs and Charitable Trusts
Organisations registered under Section 12A and 80G face updated requirements including mandatory re-validation of 80G status, revised utilisation norms, and enhanced disclosure requirements in Form 10B and Form 10BB.
Changes to TDS and TCS Provisions
Several TDS thresholds have been revised upward, reducing the administrative burden on smaller payers. New TCS provisions have been introduced for certain high-value transactions.
FCRA and Foreign Contributions
The Act has clarified the tax treatment of interest earned on FCRA bank accounts, removing a long-standing ambiguity.
The overarching intent of the Act is simplification — but the transition period will require careful attention to revised forms, deadlines, and registration requirements.
What Should You Do Now?
Schedule a compliance review before 30 June 2026.