ITR Filing: The government has recently proposed to bring a new Income Tax law by making many important changes in the Income Tax Bill (Income Tax Bill 2025). This new law will come into force from April 1, 2026, which will be called Income Tax Act 2025. In this, the government has simplified many things, so that people do not face problems. Let us know 5 such big changes in this new Income Tax Act, which every taxpayer must know.
1- Assessment Year-Tax Year instead of previous year
In the new income tax bill, assessment year and previous year have been abolished. Now there will be only tax year, which will be used for the financial year for which tax is being paid. Please note that the tax year will start from 1 April and end on 31 March.
2- Entertainment allowance deduction will not be available
Under the Income Tax Bill which will come into effect from 1 April 2026, government employees will no longer get deduction of entertainment allowance in their salary. Till now only government employees were entitled to this deduction. Let us tell you that this deduction is the lowest amount out of these 3 – one-fifth of the basic salary (1/5) The amount of entertainment allowance received up to Rs 5000
3- Clarification regarding tax on gifts
Under Section 56(2)(x) of the Income Tax Act, if you receive a gift from your family, then you are not taxed. Please note that this gift can be from your mother’s or father’s family only. If you receive a gift from anyone other than them, then you will not get tax exemption on it.
4- Strict penalty for offence under section 276CCC
Section 276CCC of the Income Tax Act applies in some cases in case of failure to file income tax returns. Now under section 276CCC, it will be considered a non-cognizable offence. It can be initiated only with the permission of the concerned authorized officer. If a person is found guilty of the offence under this section again, he can be sentenced to imprisonment ranging from 6 months to 7 years and can also be fined.
5- CBDT got more power
The provision of subsection 7 of the Income Tax Act has not been kept in the Income Tax Bill, which determined the circumstances under which it would be necessary to file ITR. For example, traveling abroad or business turnover or gross receipts exceeding a certain limit, even if the person’s annual income is less than the minimum tax exemption limit. Now the Central Board of Direct Taxes (CBDT) has been given the authority to determine the circumstances under which it would be necessary to file ITR. Along with this, CBDT can now also ask for information related to the taxpayer’s credit card, over-limit expenditure and business place.
