New Income Tax Bill 2025: What is special in the new income tax bill, understand the whole thing in 10 points..

Finance Minister Nirmala Sitharaman has introduced the new Income Tax Bill. Its purpose is to remove the complexities of the existing Income Tax Act and make it easier for taxpayers. This bill has also been passed in the Lok Sabha. Let us know in 10 points what is special in this Income Tax Bill and what will be the benefit to the taxpayers from it.

Why was the new Income Tax Bill made?

The purpose of the new Income Tax Bill is to make the law simple and clear. About 3 lakh words have been reduced from this new bill. This will make the law more accessible and easy to understand. Also, it will help in ensuring better compliance and making the tax system transparent.

622 pages instead of 880

The new Income Tax Bill has been introduced in place of the first Income Tax Act 1961. The old law had a total of 880 pages. 622 pages have been kept in the new law. Most of the subsections have been abolished in it. The new law will be called the Income Tax Act, 2025.

Old and unnecessary provisions were removed.

Old and unnecessary provisions have been removed. This has made the law more relevant. The focus has been on reducing litigation and resolving tax matters quickly. It has been made understandable to common citizens.

Easy and clear language

Complex words used in the old law have been simplified. For example, 'Notwithstanding' has been changed to 'irrespective of anything'. This will make it easier for common people to read and understand the law.

'Tax Year' instead of 'Assessment Year'

Now 'Tax Year' will replace 'Assessment Year'. The tax year will be from 1 April to 31 March like the financial year. If a business starts in the middle, its tax year will end in the same financial year.

Tax on digital assets

Now cryptocurrencies and other digital assets will be considered as 'capital assets' and will be taxed. This will bring more clarity about the tax system on digital assets.

TDS and taxation are easy

TDS and Presumptive Taxation have been introduced in table format. This will make it easier for taxpayers to understand how much tax they have to pay.

DRP (Dispute Resolution Panel) for dispute resolution.

Now the decision of the DRP will be presented clearly to resolve tax disputes quickly. This will reduce unnecessary litigation.

What will happen to the old tax regime?

The government is promoting the new tax regime, but the old tax regime will also continue. Finance Minister Nirmala Sitharaman has already said that the government has no intention of abolishing the old tax system right now.

Pending tax assessments will end.

The government will not end pending tax assessments under the new Income Tax Bill. They will be settled according to the old system.

Tax disputes and litigation will be reduced.

Many rules have been simplified in the new law. This will reduce litigation, due to which tax disputes will be resolved quickly. This will benefit the general public as well as the government.

When will the new bill become law?

Finance Minister Nirmala Sitharaman has introduced it in the Lok Sabha, from where it has also been passed. Now it will be sent to the parliamentary committee. After the recommendations of the committee, it will be presented again in the Parliament. After getting approval from the Parliament and the assent of the President, this new income tax law will come into force.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.