New income tax rules for 2025 aim to simplify compliance and provide financial relief. Salaried individuals earning up to approximately Rs 12.75 lakh may pay no tax due to increased rebates. Thresholds for Tax Deducted at Source (TDS) on rent, bank interest, and dividends have been raised. Senior citizens will see doubled TDS limits on interest income. A new rule mandates TDS on payments by firms and LLPs to partners, effective April 1, 2025. The timeline for filing updated income tax returns has also been extended.