3 Major Changes in Income Tax Rules from April 1 – Save Money Now

Every year from April 1, new income tax rules come into effect in India.

Many people ignore these updates — and unknowingly end up paying more tax than required.

Here are 3 major income tax rule changes from April 1 that every salaried person, freelancer, and business owner must know.

1. New Tax Regime Becomes the Default Option

From April 1, the New Tax Regime is treated as the default tax system.

This means:

• If you do not explicitly choose the old regime, you will be taxed under the new regime
• Lower tax slabs but fewer deductions

Important: You can still opt for the old regime if you want deductions like:

• Section 80C (PPF, LIC, ELSS)
• HRA
• Home loan interest

Money-saving tip: Always compare both regimes before filing your return.

2. Higher Standard Deduction for Salaried Employees

Good news for salaried individuals.

The standard deduction under the new regime has been increased.

• Standard Deduction: ₹50,000 (applicable to salaried & pensioners)

This directly reduces your taxable income — no investment required.

Even if you choose the new regime, you still get this benefit.

3. Zero Tax Up to ₹7 Lakh Income (With Conditions)

Under the new tax regime:

• No income tax if your taxable income is up to ₹7 lakh

This is due to the enhanced rebate under Section 87A.

But remember:

• This benefit applies only if you stay within ₹7 lakh
• Capital gains and special incomes may be taxed separately

This change has helped millions of middle-class taxpayers.

Who Benefits the Most from These Changes?

• Young professionals with fewer investments
• People earning between ₹5–7 lakh annually
• Salaried employees who prefer simple tax filing

Should You Change Your Tax Strategy?

Yes — but carefully.

If you:

• Claim many deductions → Old regime may still be better
• Want simplicity & lower slabs → New regime works well

There is no one-size-fits-all answer.

Final Words

The income tax changes from April 1 are designed to simplify taxation and provide relief to middle-income earners.

Understanding these rules can save you thousands of rupees legally.

Before filing your return, always review your tax regime choice — it makes a real difference.