New Income Tax Rule 2026: No Tax Up to 12 Lakhs, But Stricter Rules for Investors

• New Income Tax Act 2025 replaces 1961 Act from April 1, 2026, simplifying tax law with fewer sections and pages.
• Income up to ₹12 lakh exempt from tax under Section 87A; new progressive tax slabs introduced.
• Education Allowance increased to ₹3000/month and Hostel Allowance to ₹9000/month, offering more tax relief.
• STT on stock market trading increased to 0.15% and futures trading tax to 0.05%, raising trading costs.
• Share buyback tax now treated as capital gains, impacting promoters; SGB tax exemption limited to original issue purchases.