New Income Tax Bill 2025: Big change in tax system, know what will be the impact on your pocket?
NFLSpice News (New Delhi): The Income Tax Act currently applicable in the country is of 1961 and now a new Income Tax Act Bill has been introduced by the Central Government. This new Income Tax Bill 2025 is going to replace the Income Tax Act of 1961 currently applicable. This Income Tax Bill is considered to be a very big step towards making the income tax system simple, transparent and more effective.
The new Income Tax Bill 2025 introduced by the Central Government is going to come with very big changes in which many changes have been made for the citizens, companies and startups of the country. Let us tell you in today's article how much the new Income Tax Bill 2025 is going to affect your pocket and what major changes have been implemented by the government in it.
What is the new Income Tax Bill 2025?
The new Income Tax Bill 2025 introduced by the Central Government has been brought with the aim of completely replacing the old law of 1961. Its purpose is to simplify the tax process across the country, prevent tax evasion and make the tax slab more effective. The tax system has been updated and modernized according to today's digital age. Through this, the process of transactions has been made keeping in mind modern methods. Let us know its key aspects.
New tax slabs have been proposed to give concessions to taxpayers. Apart from this, the exemption limit can be increased to provide relief to small taxpayers. Some changes can be made in the tax structure for middle and high income people.
Digital transactions will be strictly monitored in this and strictness will be increased on cash transactions so that tax evasion can be prevented. Some new provisions have been added to promote UPI and digital payments.
The process of filing income tax returns is going to be easier in the new Act and the new bill plans to make Income Tax Return (ITR) filing even easier and faster. Tax filing will be improved through AI and automation.
Startups and small businesses (MSME) can be given some special tax exemptions and new startups can be given special tax concessions for the first 5 years. Apart from this, capital gains tax from the stock market and real estate will be made easier and clearer. Changes can be made in the categories of long term and short term capital gains tax.
New rates are expected on tax saving schemes like PPF, NPS, and EPF and some amendments in 80C and other deductions may be made in the new Income Tax Act.
What does the new Income Tax Act mean for you?
If you are a salaried person, businessman, investor, or startup owner, then you should pay attention to these new tax rules. It will be very important for you to update your financial plans and investment strategies according to the new tax provisions.
The new Income Tax Bill 2025 is going to bring a major reform in the tax system in India. This bill is focused on giving relief to taxpayers as well as preventing tax evasion and simplifying tax compliance. Now it remains to be seen how soon this bill gets approved in Parliament and to what extent it affects your financial life.