The new Income Tax Bill, 2025, which is being introduced in the Lok Sabha on February 13, has been prepared to replace the old law of 1961. The goal of the new law is to eliminate the complexities of the old law make it understandable to the common taxpayers and reduce the burden of litigation.
Many things were added to the Income Tax Act of 1961 during 66 budgets, which made it increasingly complex. While on the one hand, the government claims that the new law will bring more clarity regarding taxes, the common people still have doubts about its actual impact. The special thing is that the new bill does not change the tax slabs, the time limit for filing income tax returns, or capital gains taxation. It ensures stability and predictability in tax planning. At the same time, a provision has been made to impose more penalties for late payment of tax and non-compliance of rules. Better AI-based investigation will be done to detect tax evasion. In the new law also, the financial year will be calculated between April 1 and March 31 as before. There will be no change in this.
Important facts
The number of sections of the Income Tax Act, of 1961 will now change. For example, the section for filing ITR is 139 under the current law, but it will change in the new law.
The laws related to residence, which determine whether a person is a normal resident, non-normal resident, or non-resident, will remain unchanged.
The new Income Tax Bill is much more detailed than the 1961 law. The current law has 298 sections, and 14 schedules while the new bill has 536 sections and 16 schedules.
The new bill has simplified explanations for taxpayers. Complex legal jargon has been removed. Introduction of a single section for all salary deductions (e.g., standard deduction, gratuity, leave encashment). A simple depreciation formula has been fixed for businesses.
All provisions related to TDS have been consolidated under one section. While it simplifies compliance, businesses may need to update their tax reporting systems to align with the new structure.
The new Income Tax Bill is expected to come into effect from FY 2026 -27.
Sad news has come from the South film industry. Well-known stunt artist SM Raju died during the s
The film Dhurandhar is currently raking in huge profits at the box office. The film has crossed t
A special sneak peek of the first trailer for Marvel’s film ‘Avengers: Doomsday&rsquo
The Indian team, true to its reputation, performed poorly in the Kolkata Test against South Afric
Union Road Transport and Highways Minister Nitin Gadkari on Wednesday made a big announcement say
On Tuesday, the Congress party accused Prime Minister Narendra Modi and the Central Government of
The murder case of Indore-based businessman Raja Raghuvanshi has heated all over the country. The
Tensions have escalated in West Bengal following the crushing defeat of the Trinamool Congress (T
Instagram Photo Sent Accidentally On Instant? Follow These Simple Steps to Undo It Quickly
Instagram Instants Mistake? Here’s How to Undo Accidentally Sent Photos Before Anyone Sees
This horror show has taken Netflix by storm, with all seasons trending in the top 10.
There are many shows on Netflix whose new seasons viewers eagerly await. New seasons often trend
