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.
Salman Khan: Salman Khan started shooting for 'Battle of Galwan' in Ladakh, BTS picture goes viral
There is good news for Salman Khan fans as Salman has started shooting for his much-awaited film
The police have issued a traffic advisory regarding the Surajkund International Self-Reliant Hand
The social media world was in an uproar when Virat Kohli's account was reported to be deactivated
The swearing-in ceremony of the new Chief Minister of Delhi is likely to take place after Februar
Cult TV serial Kyunki Saas Bhi Kabhi Bahu Thi is all set to make a comeback on TV. Actress Smriti
'India-Italy friendship is deep...', what else did Meloni say after meeting PM Modi?
Prime Minister Narendra Modi is on a visit to Canada. Yesterday he participated in the G-7 summit
IPL 2025: BCCI's tension increases due to a problem regarding an IPL match; schedule may be changed
Only three days are left in IPL 2025. On March 22, the first match will be played between KKR and
Prime Minister Narendra Modi paid tribute to the late former Prime Minister Indira Gandhi on her
Before the 5-Test series against England, the Indian team went through a period of major change.
Last month, 'Kaanta Laga Girl' Shefali Jariwala passed away. After the death of the actress, ther
