Finance Minister Nirmala Sitharaman will introduce the revised Income Tax Bill 2025 in Parliament today, which will replace the existing Income Tax Act 1961. Let’s understand it in 10 key points…
Income Tax Bill 2025: Today the new Income Tax Bill 2025 is going to be introduced in Parliament, which can change the life of every taxpayer in the country. Finance Minister Nirmala Sitharaman is going to say goodbye to the old complex Income Tax Act 1961 and bring a simple, transparent and timely law, which will be easy to understand.
Finance Minister Nirmala Sitharaman will present this new Income Tax Bill in the Lok Sabha today. This new Income Tax Bill includes provisions like major changes in tax slabs, increase in exemption limit and huge reduction in rules. Let us understand the new Income Tax Bill in 10 points…
10 big things about the new Income Tax Bill
- The new bill will replace the old Income Tax Act of 1961. It is almost half in size and is going to remove complexities.
- It has only 2.6 lakh words and 536 sections, whereas the old law had 5.12 lakh words and 819 sections. The number of chapters has been reduced from 47 to 23.
- New tax slabs: No tax for ₹0–4 lakh, 5% on ₹4–8 lakh, 10% on ₹8–12 lakh, 15% on ₹12–16 lakh, 20% on ₹16–20 lakh, 25% on ₹20–24 lakh and 30% tax above ₹24 lakh.
- The exemption limit under section 87A has now been increased to ₹60,000. Due to this, people having taxable income up to ₹ 12 lakh will not have to pay tax.
- Now there will be only ‘Tax Year’, due to which tax will have to be paid in the same year in which the income is earned. This will increase transparency.
- Lump sum withdrawal in private pension schemes will now get tax exemption like government schemes. Earlier only government employees used to get the benefit of this relief.
- All exemptions and refund provisions, such as TDS / TDCS, are now clearly given in the table so that the taxpayer gets more clarity.
- Even after filing ITR, you will be able to claim TDS refund without penalty.
- Tax exemption will continue on anonymous donations received to non-profit organizations and religious trusts.
- 285 recommendations of the select committee have been fully included in the bill. This will be directly beneficial for the common taxpayer.
