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.
Yogi Vs Akhilesh: Responding to Yogi's statement, Akhilesh asks—
The Uttar Pradesh 2026 event is being organized at The Centrum hotel in the state capital. Today
The prophecy came true! Samay Raina's show India's Got Latent was shut down because of this 'curse'
The troubles of YouTuber Ranveer Allahabadia and stand-up comedian Samay Raina are not reducing.
Pakistan's T20 World Cup campaign has reached a crucial juncture. For the Salman Agha-led team, t
Excise Duty Hiked on Diesel and ATF From Today: Check New Rates and Government’s Decision on Petrol
The government has hiked the Special Additional Excise Duty (SAED) on the export of petroleum pro
The final of IPL 2025 will be played today between Punjab Kings and Royal Challengers Bangalore a
Looking for Additional Funds? Here’s Why a Top-Up Loan May Be Better Than a Personal Loan
Unexpected expenses can arise at any time. Whether it's a home renovation, children's education,
Audiences are eagerly awaiting ‘Dhurandhar 2’. Fans are very excited about the film's
On the occasion of Alvida ki Namaaz, strict security arrangements are being ensured in all the di
A major box office battle is set to unfold in March. Two major films will clash: Ranveer Singh's
Famous Bollywood actor Salman Khan has been receiving death threats for a long time. The actor on
