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.
A large number of people are expected to head to restaurants, bars, and markets from Wednesday ev
Bollywood actress Alia Bhatt's former personal assistant Vedika Prakash Shetty has been arrested
The parents of Air Force Group Captain and Indian astronaut Shubhanshu Shukla became emotional ab
A thick layer of smog blankets the national capital, Delhi. According to the Central Pollution Co
The matter of controversial comments in 'India's Got Latent' is constantly in the headlines. A po
Lucknow Super Giants defeated KKR by 4 runs in a thrilling match played on 8 April. In this match
An incident during the promotional event for Prabhas's upcoming film 'The Raja Saab' in Hyderabad
The Bangladesh Cricket Board (BCB) has refuted reports of an ultimatum from the ICC. Recent repor
BJP's Medha Vishram Kulkarni introduced a corrigendum in the Upper House on Thursday afternoon af
Air Pollution: 'Old people like me are suffering', Sonia Gandhi slams government over air pollution
Opposition leaders protested against the serious problem of air pollution in the National Capital
