Learn the most important 2025 tax and GST changes affecting businesses and salaried individuals in Ahmedabad. M.A.J Associates explains with clarity.

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"Top Tax & GST Updates in 2025 Every Business Owner in Ahmedabad Must Know"

Introduction

Staying ahead of tax regulations and compliance is vital for running a business smoothly. With major reforms introduced in 2025—from simplified GST slabs to expanded tax exemptions for salaried individuals—businesses across Ahmedabad need to stay informed. In this blog, M.A.J Associates breaks down the most important tax and GST updates of 2025, offering insights tailored for small businesses, SMEs, and professionals in Ahmedabad.

1. Simplified GST Structure – Coming Soon

The central government plans to streamline the goods and services tax (GST) into two primary slabs—5% and 18%—with a 40% rate for luxury goods. Agricultural and daily-use items are expected to benefit significantly lower GST, easing compliance and lowering costs for businesses. 

Why it matters for Ahmedabad businesses: Lower GST rates and fewer slabs mean simpler filing, improved cash flow, and clearer pricing strategies—especially for retail, manufacturing, and services sectors.

2. GST Exemption for Insurance Premiums

A panel of state ministers has proposed completely exempting life and health insurance premiums from GST, currently taxed at 18%. This move could make insurance more affordable—an important consideration for salaried professionals and businesses offering group cover. 

3. Tax-Free Perquisites for Salaried Employees Raised

From April 1, 2025 (Assessment Year 2026-27), the Finance Act, 2025 increases the tax-free perquisite limit under Section 17(2)(iii) from â‚ą50,000 to â‚ą4 lakh, and the exemption for overseas medical treatment expenses to â‚ą8 lakh. 

Relevance for businesses in Ahmedabad: These benefits enhance employee compensation packages without increasing tax liability—valuable for firms looking to attract and retain talent.

4. Union Budget 2025 – Major Tax Reliefs

The Union Budget 2025 introduced several key tax reliefs:

  • Zero tax for incomes up to â‚ą12 lakh (â‚ą12.75 lakh after standard deduction).

  • New tax slabs under the restructured regime.

  • Raised TDS thresholds: Interest income TDS limit for senior citizens doubled to â‚ą1 lakh; rental income TDS limit increased to â‚ą6 lakh.

  • Extended window to file updated ITRs—from 2 years to 4 years.

  • A new Income Tax Bill aimed at simplifying the tax code. 

Why this matters: Increased take-home income and TDS relief can improve cash flow for business owners and employees alike.

5. Income-Tax Act 2025: Modern Taxation Framework

The new Income-Tax Act 2025 brings transformative changes:

  • Combines "Assessment Year" and "Previous Year" into one unified Tax Year concept.

  • Streamlined structure with only 536 sections.

  • Introduces faceless, digital-first assessments to reduce human interaction and the scope for errors or delays.

  • Mandatory prior notice before enforcement and faster refunds.

  • Expands definition of “undisclosed income” to include virtual digital assets. 

How it benefits: Enhances transparency, speeds up refund processing, and aligns with India’s digital governance goals.

Conclusion 

Keeping pace with these significant 2025 tax and GST reforms can give your business a competitive edge. Whether you're navigating simplified GST slabs, maximizing employee benefits, or understanding digital-centric tax compliance, Milind A Associates has you covered.


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