New Income Tax Bill 2025 Unveiled: Key Highlights Across 23 Chapters and 16 Schedules
The Indian government is set to introduce a new Income Tax Bill 2025 in the Budget 2025 session, aiming to replace the Income Tax Act of 1961 with a simplified and modern tax framework. The bill consists of 23 chapters and 16 schedules, streamlining tax laws, reducing complexity, and easing compliance for taxpayers.
Key Highlights of the New Income Tax Bill
- Simplification of Tax Provisions: The number of sections will be significantly reduced to make tax compliance easier.
- Higher Standard Deduction: The limit may be increased to ₹75,000, benefiting salaried taxpayers.
- Updated Income Tax Slabs: A potential restructuring of tax slabs, including a new bracket for high-income earners above Rupees 25 lakh annually.
- Changes in TDS and TCS Rules: Higher exemption limits for senior citizens and rental income, with a focus on reducing compliance burdens.
- Crypto Tax Reporting: Entities dealing in cryptocurrencies will have to disclose transactions as per new regulations.
- Ease of Business Regulations: New provisions aim to reduce tax disputes and ensure better compliance for businesses and startups.
- Extension of Tax Benefits: Tax benefits under Section 80-IAC for startups may be extended for five more years.
The bill is expected to be tabled in the second half of the Budget session after extensive review by the law ministry. The government aims to modernize India’s tax system while ensuring clarity, fewer disputes, and a taxpayer-friendly approach.
