New Income Tax Bill 2025: Finance Minister Nirmala Sitharaman has tabled the New Income Tax Bill in Lok Sabha on Thursday, comprising 536 clauses throughout 622 pages, with an purpose to exchange the present 823-page legislation that has been in impact for 64 years. The New Income Tax Bill 2025, written in clearer language, eliminates the idea of “assessment year” and introduces “tax year” to align with the monetary 12 months.
The new 622-page Income Tax Bill 2025 and goals to exchange the 60-year-old Income Tax Act of 1961 and as soon as handed can be referred to as the Income Tax Act, 2025. It is predicted to take impact in April 2026.
The Income-tax Act of 1961, which has undergone quite a few amendments through the years, is being changed with the Income-tax Bill of 2025 to consolidate and replace the legislation referring to revenue tax. The new invoice goals to simplify and streamline the tax construction, making it simpler to grasp and adjust to for taxpayers and directors.
The invoice introduces provisions for a faceless jurisdiction of income-tax authorities, enabling distant and digital tax administration. It contains measures for alternate dispute resolutions, comparable to a Dispute Resolution Committee and advance rulings, to facilitate environment friendly decision of tax disputes.
The invoice addresses avoidance of tax by measures like switch pricing laws and a General Anti-Avoidance Rule to stop tax evasion; and mandates the deduction or assortment of tax at supply and advance fee to make sure well timed tax assortment.
It introduces particular provisions for sure sectors, comparable to transport corporations, permitting them to go for a tonnage tax scheme. It additionally introduces new tax regimes for people, Hindu Undivided Families (HUFs), and sure corporations, together with these engaged in manufacturing.
New Income Tax Bill 2025: Key Highlights
* The Income Tax Bill, 2025, options simplified language, eliminates pointless provisions and adopts concise sentences;
* No extra taxes are launched within the Bill; it consolidates current tax provisions from the Income Tax Act, 1961;
* Contains 536 sections, 23 chapters and 16 schedules inside 622 pages, in comparison with the 1961 Act’s 298 sections, 23 chapters and 14 schedules;
* Implementation scheduled for April 1, 2026; laws to be established after Act notification;
* Incorporates each conventional and new tax frameworks for people, HUFs and different entities;
* Introduces ‘Tax 12 months’ idea, eliminates advanced phrases like ‘Previous 12 months’ and ‘Assessment 12 months’;
* Replaces ‘however’ with ‘irrespective’ for readability;
* Utilises tables and formulae as a substitute of ‘explanations or provisos’;
* Incorporates Taxpayer’s Charter outlining rights and tasks;
* Includes particular provisions for calculating capital features on market-linked debentures;
* Relocates revenue exclusions to Schedules for improved readability;
* Consolidates wage deductions together with normal deduction, gratuity, and go away encashment in a single part, quite than dispersing throughout a number of sections/guidelines.
New Income Tax Bill 2025 PDF: Read Full Text Here
Below is the New Income Tax Bill 2025 full text and doc:
