Today, not only a bill is being introduced in Parliament, but preparations are being made to bid farewell to the 63 -year -old, complex and tedious Income Tax Act. Yes, we are talking about the revised Income Tax Bill 2025. The bill was withdrawn on Friday last week, and is now being re -introduced in a new and better form with hundreds of suggestions from a special committee of Parliament. This is not just a matter of change in tax rates, it is an attempt to end the entire ‘trap’ in which every taxpayer of the country was entangled till date. So what has changed in this new bill and what will be the effect on your pocket? Let’s make full analysis of this in 8+4 easy points.
So what changes did the committee make? (8 big suggestions that are of your use)
The 31 -member Select Committee of Parliament gave a total of 566 suggestions in the 4584 pages report. These are the 8 biggest changes among them.
1. Very good news for those who file late ITR
This is the biggest relief. The committee has recommended the removal of the rule under which no refund was received on filing ITR after the due date. If it is accepted, now you will be able to get your refund even after filing ITR late.
2. Small and medium traders relief
The definition of micro and small enterprises has been suggested to change according to the MSME Act, so that there is no confusion in the rules.
3. TDS rules on Provident Fund (PF) will be clear
It has been recommended to further clarify the rules to remove confusion about TDS rules on withdrawing money from PF.
4. Definitions will be strict and clear
The definitions of many words and rules in the Bill were not clear earlier. The committee has recommended them to make them more clear and strict so that no one can take advantage of them.
5. More relief for taxpayers
The committee has suggested that some tax slabs or exemption limitations should be made easier, especially for small taxpayers and middle class.
6. Coordination with old laws
The new bill has been suggested to be better integrated with other laws such as GST or corporate tax so that there is no confusion.
7. 80 million deduction changes (for corporate)
It is a rule associated with companies, which also suggested changes on exemption on inter-corporate dividends.
8. Connection with the current system
The committee has asked to ensure that the new law is easily integrated with the current tax structure.
4 big things you should know inside the bill
1. Now say ‘tax year’, not ‘assessment year’
To simplify the rules, the misleading word ‘assessment year’ has been removed and made year ‘. The size of the bill has also been reduced from 823 pages to 622, although the number of sections has been increased.
2. Government’s eye on Crypto too
Now crypto properties will also be counted in ‘undeclared income’ like cash, gold and jewelery. This will bring transparency in digital transactions.
3. Now taxpayers will get rights (taxpayer charter)
For the first time, the ‘Taxpayer Charter’ has been included in the bill. This will protect your rights and make tax authorities more accountable. Will tell what your rights are and what are the responsibilities of the authorities.
4. Everything is the same place for salaried people
All salary related deductions like standard cuts, gratuity and leisure exposure are now listed at one place. This will make it easier than ever to understand the rules.
What will be the effect on your pocket? (Large budget announcement)
The bill values the announcements made in the budget of 1 February.
Income tax-free income of up to ₹ 12 lakh
Under the new tax system, if your taxable income is up to ₹ 12 lakhs, then you will not have to pay any tax.
Rebate up to ₹ 12.75 lakh to salaried people
With a standard deduction of ₹ 75,000, this exemption for salaried people will be ₹ 12.75 lakh.
Direct benefit to general taxpayer
The new Income Tax Bill 2025 is not only the name of changes in rates, but a generational change in India’s tax system. Following the suggestions of the Select Committee, it has returned as even more public welfare. Its direct benefit will be to the general taxpayer, for which it will now be easy to follow tax, its rights will be reserved and more money will be saved in his pocket.
