New financial year set to bring key tax, pension, and MSME reforms

The new income tax slabs under the new tax regime have been modified to increase the basic exemption limit from ₹3 lakh to ₹4 lakh

A host of financial and regulatory changes set to take effect from April 1, marking the start of the 2025-26 financial year, are expected to boost consumption, strengthen social security and expand business opportunities for small enterprises. These include revised income tax slabs, a unified pension scheme (UPS) for central government employees, and enhanced turnover ceilings for micro, small and medium enterprises (MSMEs). 

 

The new tax regime will see the basic exemption limit raised from ₹3 lakh to ₹4 lakh, while the tax rebate under Section 87A has been enhanced to reduce the burden on middle-income taxpayers. Under these revisions,