New Income Tax Bill 2025: Many changes have been made in the new Income Tax Bill 2025. An attempt has been made to make the new Income Tax Law compatible with global standards by removing many unnecessary provisions.
New Income Tax Bill 2025: Union Finance Minister Nirmala Sitharaman on Thursday introduced the Income Tax Bill 2025 in the Lok Sabha. It was sent to the Select Committee of the House for review. It is believed that the committee may submit its report on the first day of the second budget session. Many changes have been made in the new Income Tax Bill 2025. An attempt has been made to make the new Income Tax Law compatible with global standards by removing many unnecessary provisions.
TDS and TCS provisions have been made easier to understand by giving tables. Separate tables have been given for payments to residents and non-residents. Where there is no deduction, it has been explained as an example.
A large number of tables have been used so that the common man can easily understand the law and calculate income tax. Also, provisions related to one area and class have been kept in one place.
Many such provisions have been made in the new bill. These can be easily understood in the form of questions and answers…
What are the changes in the tax slab?
No changes have been made related to the slab. Emphasis was only on simplifying the law by removing unnecessary provisions.
How will the new Income Tax Law Bill be different from the existing Income Tax Act-1961?
After removing unnecessary provisions, the new Income Tax Bill has become 2.6 lakh i.e. half the words compared to the existing Income Tax Act-1961. In the new bill, more use of tables and formulas has been made to explain the provisions, so that the common man and taxpayers can also calculate their tax.
What are the provisions in the new bill?
All the provisions have been given in one place so that salaried employees can easily understand the salary related provisions.
In the existing law, the taxpayer has to refer to different chapters to file his application, but in the new law, he will be able to refer from one place. All matters related to salary have been kept in the same chapter.
What are the reasons for regular amendments in the existing Income Tax Act?
The Income Tax Act is a dynamic law, which requires regular changes and amendments. The existing Income Tax Act has become more cumbersome over time. A lot of effort was made for simplification in 2009, 2019 and before. Some provisions remain in the law due to pending claims and issues. This increases the burden of various litigation on the Income Tax Department, so a new Income Tax Bill was brought to make the law compatible with international standards.
What are the basic rules to make the existing provisions concise, clear and easy?
To simplify the existing provisions, it is proposed to eliminate unnecessary provisions, reduce their length by almost half. The drafting style of the new bill is straightforward and clear, with more than 57 tables included as compared to 18 tables.
What are the main steps taken to clarify the new bill?
The provisions of the existing law are quite complex. At times, even income tax officials have difficulty understanding them. Therefore, unnecessary clarifications, redundant provisions and formulas have been removed in the new bill. For example, in the case of provisions related to non-profit organisations (NGOs), a complete text has been included. NGOs have been consolidated and structured into seven sub-sections within the bill.
