New Income Tax Bill was presented in Lok Sabha, know what will change for the general public – New Income Tax Bill Introduced Lok Sabha What Will Change for Common People Explied NTC
In the Lok Sabha, the lower house of Parliament, the government has introduced the New Income Tax Bill 2025. This bill will be kept for discussion in the front part of the budget session. New Income Tax Bill will replace the Income Tax Act 1961. Many changes have been made in the new bill, the information of which was revealed in the draft copy revealed on Wednesday before its introduction.
The new bill has been claimed to make transparent and taxpayer friendly. In this, it has been proposed to make the rules and strict rules for digitization, improvement in tax payment to make tax system easier.
Income tax bill 2025 big things
1- The number of pages in the bill was so low: The first and big change in the new income tax bill has been made that it has been made some brief with more easy words than before the common people. For example, there were 880 pages in the 1961 Income Tax Bill, but after six decades, the number of pages included in it has been reduced to 622. The new tax bill has 536 sections and 23 chapters.
2- Concept of ‘Tax Year’: The concept of tax year has been brought in the new bill to be introduced today. Which will replace the assessment year and previous year used so far. Usually, it has been seen that while filling taxpayers assessment and financial year, there were confuses, but now it will be used only by ending them. For example, the tax year 2025-26 from 1 April 2025 to 31 March 2026 will be 2025-26. Meaning, the entire 12 months of financial year will now be called tax year.
3- Standard Didlation: If you are a salary under the New Tax Bill, then you will continue to get a standard deduction of Rs 50,000 under the old tax regime, but if you choose the New Tax Resetam, then this deduction will be available for you up to Rs 75,000. Along with this, there will be no change in the tax slab under the New Tax Regime and the rates announced in the budget will remain unchanged.
Income up to Rs 4 lakh is no tax
5 percent tax from Rs 4 lakh 1 to 8 lakh rupees
10 percent tax from Rs 8 lakh 1 to Rs 12 lakh
15 percent tax from Rs 12 lakh 1 to Rs 16 lakh
20 percent tax from Rs 16 lakh 1 to 20 lakh rupees
4- CBDT gets this right: Income tax in the New Tax Bill, the next major change in changes against 1961 is connected to the Central Direct Tax Board i.e. CBDT. According to the bill, earlier the Income Tax Department had to contact Parliament to start various tax schemes, but according to the New Tax Act 2025, now CBDT has been empowered to start such schemes independently. Its purpose is to eliminate the problem of delay bureaucracy.
5- Capital gain rates unchanged: There is no change in the period of short term capital gains for the stock market in the draft. Under section 101 (b), a period of up to 12 months will be considered as short term capital gains. Apart from this, its rates have also been kept the same. The short -term capital gains tax has been retained at 20 per cent, while a tax of 12.5 per cent will be applicable under the Long Term Capital Gain.
6- Rebate on pension, NPS and insurance: The tax Didck will continue on pension, NPS contribution and insurance under the New Income Tax Bill. Retirement funds, gratuity and PF contribution have also been kept under tax exemption. Tax relief will also be given on investment in ELSS Mutual Fund.
7- Penalty on tax theft: In the New Tax Bill, provision has been made for more strictness and fine on tax evaders. Intentional tax evaders can be prosecuted. More interest and fine can be charged for non -payment of tax. If a person tries to hide his income, then his account can be seized. Apart from this, there will be a huge penalty for giving wrong or incomplete information.
8- E-KYC mandatory to make tax payment transparent: The aim of the central government to make the existing tax system digital and more transparent through the new tax bill is the aim. For this, E-KYC and online tax payment are being made mandatory. With e-Filing mandatory, transparency in tax payment will increase.
9- tax discount on agriculture income: In the New Tax bill, Agriculture Income has been kept tax free under certain conditions. There will be tax exemption on religious trusts, institutions and donated amount. Along with this, the electoral trust has also been exempted from tax.
10- This change to reduce tax disputes: Due to many vague provisions in the tax bill of 1961, there have been disputes between the taxpayers and the government and due to this, the number of litigation has also increased continuously. The new tax bill is being introduced with clear rules and easy words, which will make it easier to understand and also reduce the number of disputes.
