India – New Income Tax Bill, Haryana LWF Contribution Rates and Chennai PT Rates
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The Income Tax Bill, 2025 comes into effect from 1 April 2025 which replaces the existing Income Tax Act, 1961. The New bill removes redundant and repetitive provisions, eliminates intricate language and re-organises sections logically.
The New tax rates under section 115BAC i.e., the New Tax Regime or the Default Tax Regime are documented below. The Old regime rates remain unchanged.
| Annual Income | Rate % (2024-2025) | Rate % (2025-2026) |
|---|---|---|
| 0 - 300,000 | 0 | - |
| 0 - 400,000 | - | 0 |
| 300,000.01 - 600,000 | 5 | - |
| 400,000.01 - 800,000 | - | 5 |
| 600,000.01 - 900,000 | 10 | - |
| 800,000.01 - 1,200,00 | - | 10 |
| 900,000.01 - 1,200,000 | 15 | - |
| 1,200,000.01 - 1,600,000 | - | 15 |
| 1,200,000.01 - 1,500,000 | 20 | - |
| 1,600,000.01 - 2,000,000 | - | 20 |
| 1,500,000.01 - 99,999,999,999 | 30 | - |
| 2,000,000.01 - 2,400,000 | - | 25 |
| 2,400,000.01 - 99,999,999,999 | - | 30 |
Tax Rebate
The rebate u/s 87A for taxpayers filing tax returns under the New Tax Regime increased to INR 60,000.00 from the previous limit of INR 25,000.00.
Effective 1 April 2025, the Haryana Labour Welfare Board on 7 March 2025 announced new Labour Welfare Fund (LWF) contribution rates for both employees and employers.
The new LWF contribution rates are as follows:
| Particulars | LWF Contribution Rates Until 2025.03.31 Amount (in INR) | LWF Contribution Rates From 2025.04.01 Amount (in INR) |
|---|---|---|
| Employee’s Contribution to be recovered from payroll | 31 | 34 |
| Employer’s contribution (twice the employee’s contribution) | 62 | 68 |
Effective 1 April 2025, the Greater Chennai Corporation – Professional Tax through circular dated 20 January 2025 has announced new contribution slab rates for half-yearly Professional Tax (PT).
The new PT contribution rates are as follows:
| Particulars | Chennai PT Contribution Rates Until 2025.03.31 (Half-yearly) | Chennai PT Contribution Rates From 2025.04.01 (Half-yearly) |
|---|---|---|
| Half-yearly Income | Amount (in INR) | Amount (in INR) |
| 0 - 21,000 | 0 | 0 |
| 21,001 - 30,000 | 135 | 180 |
| 30,001 - 45,000 | 315 | 425 |
| 45,001 - 60,000 | 690 | 930 |
| 60,001 - 75,000 | 1,025 | 1,025 |
| 75,001- 99,999,999,999 | 1,250 | 1,250 |
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.
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India – New Income Tax Bill, Haryana LWF Contribution Rates and Chennai PT Rates – 1 April 20251.72 MB