Circular No. 1/2025 — TDS on salary computation AY 2025-26

Date: 2025-01-01 Status: ACTIVE Category: Recent (2025-2026) Binding on Department: Yes (Section 119 / Section 400 IT Act 2025)

Summary

Updated TDS on salary guidelines for AY 2025-26.

Key Directions

  1. Default: section 115BAC (new regime).
  2. Standard deduction Rs.75,000 under new regime.
  3. Employer to consider Form 12BAA declarations.

Applicability Under IT Act 2025

Saving Clause: Section 536 of IT Act 2025 saves circulars issued under the 1961 Act “so far as not inconsistent” with the new Act.

Old Section (1961 Act)New Section (2025 Act)Consistent?
192392Yes

Cross-References

Act Sections

  • None identified

Key Case Law (Circular Supremacy)

  • To be populated — cases where this circular was cited/applied

Full Text

Full text to be added — see raw/circulars/ for PDF when available

Source