Income Tax Bill 2025: Key Changes You Must Know
Income Tax Bill, 2025, the long-awaited bill is proposing a shakeup in the taxation arena. The focus within recent headlines is upon its ramifications for taxpayers and firms. The bill is supposed to be introduced in Parliament on February 13, 2025. The main focus of the bill is to simplify tax laws, develop modern frameworks of compliance, and adapt to the changes in financial circumstances.
Crucial Updates in the New Income Tax Legislation
Importantly, one of the biggest changes to come about will be in nomenclature. ‘Tax Year’ will replace ‘Assessment Year,’ while ‘Financial Year’ will replace ‘Previous Year.’ The Tax Year will coincide with the financial year, running from April 1 of every year.
Besides, the definition of digital transactions and cryptocurrency assets in this proposed legislation shall widen, thereby paving clearer taxation avenues for financial institutions and investors. It has also introduced the Taxpayer’s Charter that essentially indicates a move towards greater transparency with a view toward protecting taxpayer’s rights.
The New Provided Tax Brackets
- Up to ₹4,00,000 – Tax Free
- ₹4,00,001 to ₹8,00,000 – 5%
- ₹8,00,001 to ₹12,00,000 – 10%
- ₹12,00,001 to ₹16,00,000 – 15%
- ₹16,00,001 to ₹20,00,000 – 20%
- ₹20,00,001 to ₹24,00,000 – 25%
- More than ₹24,00,000 – 30%
Further Express Benefits and Deductions
- The deduction for an employee is set at ₹50,000.
- Tax on employment completely deductible under Article 276(2).
- Pension commutation of the civil and defense personnel shall be tax-free.
With its thorough reform, the Income Tax Bill, 2025, aims at ease of compliance for a taxpayer all over the domains of India. Keep on following more trending news today with The News Buzz.
