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.
After the Pahalgam attack, India took its revenge on Pakistan by running Operation Sindoor. After
Union Home Minister Amit Shah on Friday condemned the incident of allegedly using abusive words a
Meghalaya Police recreated the crime scene of Raja Raghuvanshi's murder in Sohra. Police took Vis
On Thursday, two days after the IPL 2025 final, RJ Mahvash posted in support of Yuzvendra Chahal,
Shah Rukh Khan's son, Aryan Khan, has entered the world of showbiz with "The Baddies of Bollywood
A huge crowd gathered in Puri on Sunday during the 'Sunabesha' (gold dress) festival of Rath Yatr
Amid the controversy over Ranveer Allahabadia's obscene comments on the show 'India's Got Luttent
Nitish Kumar or a BJP leader: Who will be Bihar's next Chief Minister? PM Modi has clarified.
Following the NDA's landslide victory in Bihar, PM Modi made a significant statement about Chief
The new variant of Corona (Covid-19 Update) has engulfed many people across the country and four
In view of the ongoing alert on heavy rains and landslides by the Meteorological Department, Shri
