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.
The violence against minorities in Bangladesh shows no signs of abating. The latest incident of v
Several tremors of earthquake were felt in Nepal late on Thursday night. Its intensity was measur
Every year, Ravana is burnt on the occasion of Dussehra, also known as Vijayadashami. This year,
India's largest geopolitical and geoeconomic conference, the Raisina Dialogue, begins today in Ne
Prime Minister Narendra Modi arrived at the Mahila Empowerment Maha Sammelan in Bhopal on Saturda
The ongoing tension between Iran and Israel (Israel-Iran Tension) has once again made global head
When the trailer of Diljit Dosanjh's Punjabi film 'Sardaarji-3' was released, Indian fans were fu
There was a lot of uproar in the Rajya Sabha on Friday during the budget session of Parliament. B
Ajay Devgn reacts to Akshaye Khanna's exit from Drishyam 3; the actor spoke to the director.
Following the success of the film Dhurandhar, actor Akshaye Khanna's name has been constantly in
Gold and silver prices continue to fluctuate. According to bullion rates, silver prices rose by â
