On February 13, 2025, Finance Minister Nirmala Sitharaman introduced, the Income Tax Bill 2025 in Parliament as a significant step towards simplifying India’s tax structure. The bill aims to replace the existing tax laws with a streamlined framework that is easier to understand and comply with.
Key Features of the New Income Tax Bill
1. Simplified Tax Laws
The new bill reduces the number of pages in the existing law, eliminating redundant provisions and making tax compliance easier. This move is expected to reduce litigation and improve transparency in taxation.
2. Introduction of ‘Tax Year’
A major change in the new income tax bill draft is the replacement of the financial year and assessment year with a single ‘tax year’. This aims to simplify record-keeping and compliance for taxpayers.
3. Greater Access for Tax Authorities
The Income Tax Bill 2025 grants tax authorities broader powers to access taxpayers’ electronic records, including emails and social media accounts, during investigations. While this aims to curb tax evasion, concerns have been raised regarding potential privacy issues.
4. Tax Rates and Slabs
The bill retains the tax rates and slabs from the Union Budget 2025-26. The government has set the tax-free income threshold at ₹1.28 million and adjusted higher income brackets to provide relief to taxpayers and encourage compliance.
5. Changes in Presumptive Taxation
The new finance bill also brings reforms to the presumptive taxation system. The concept of ‘Profit claimed to have been actually earned’ helps businesses compute income more accurately, ensuring a precise declaration of earnings.
Income Tax Bill 2025 PDF and Access
For those seeking detailed information, official government portals provide access to the Income Tax Bill 2025 PDF. Parliament will further discuss and refine the bill before it becomes law. Download
Impact on Taxpayers
The new income tax act aims to make tax filing and compliance easier while introducing stricter enforcement mechanisms. With clearer provisions and reduced ambiguity, the new tax bill will bring more predictability for individuals and businesses alike.
What’s Next?
The Income Tax Bill introduced in Parliament will be debated further before being enacted. Taxpayers should stay informed about upcoming changes and consult with financial advisors to ensure compliance under the new income tax bill India.
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