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.
Former Indian captain Krishnamachari Srikkanth has made a strong appeal to the BCCI regarding you
Yamuna Water Level: The threat of flood in Delhi is averted, but now people are facing a big problem
The danger of floods has been averted due to the decrease in the water level of the Yamuna in Del
Minister of State for Finance Pankaj Chaudhary said in the Lok Sabha on Monday that the governmen
India has a large audience for Hollywood superhero films. Japanese anime series and films also ha
Paresh Rawal is in the news these days. The reason is his upcoming film, "The Taj Story," which i
Storyteller Devkinandan Thakur strongly condemned the attacks on Hindus in Bangladesh. He also ta
Uttar Pradesh Chief Minister Yogi Adityanath, while talking to news agency PTI, spoke openly on e
The last week of February is underway, and the weather is rapidly changing. While the cold is slo
Bigg Boss 19: First wild card entry in 'Bigg Boss 19', this contestant came to rock the show.
'Bigg Boss 19' is surprising its viewers every day with new twists and turns. This season has cre
Senior Congress leader and former Union Home Minister Shivraj Patil breathed his last this mornin
