BP · 2026UPDATES

Tax Laws Part 1 2025 Latest Tax Rules for Bankers

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for 2026 updates — Bank Promotions.

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Q

What is the new tax rebate limit under Section 87A for individual taxpayers under the new tax regime for FY 2025-26?

A

Under the new tax regime, individuals with taxable income up to Rs. 12 lakh are entitled to a full tax rebate under Section 87A, effectively making their tax liability nil.

Q

What is the basic exemption limit under the new tax regime for individuals for FY 2025-26?

A

Basic exemption limit is Rs. 3 lakh under new regime.

Q

What are the revised income tax slab rates under the new tax regime effective from FY 2025-26?

A

The revised slabs are: Nil up to Rs. 4 lakh, 5% for Rs. 4-8 lakh, 10% for Rs. 8-12 lakh, 15% for Rs. 12-16 lakh, 20% for Rs. 16-20 lakh, 25% for Rs. 20-24 lakh, and 30% above Rs. 24 lakh.

Q

What is the maximum marginal rate of income tax applicable under the new tax regime for FY 2025-26?

A

Maximum marginal rate is 30% on income above Rs. 15 lakh.

Q

What is the standard deduction available to salaried employees and pensioners under the new tax regime for FY 2025-26?

A

The standard deduction under the new tax regime has been enhanced to Rs. 75,000 for salaried employees and pensioners, up from the earlier Rs. 50,000.

Q

Which section of the Income Tax Act provides for deduction on account of depreciation for banking companies?

A

Section 32 provides depreciation deduction for banking companies.

Q

What is the updated TDS threshold on interest income from banks for senior citizens under Section 194A for FY 2025-26?

A

The TDS threshold for senior citizens on bank interest income under Section 194A has been raised to Rs. 1 lakh per annum, compared to Rs. 50,000 earlier.

Q

Under which section of the Income Tax Act is interest on housing loan deductible for self-occupied property?

A

Section 24(b) allows up to Rs. 2 lakh deduction.

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