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New Income Tax Bill 2025
February 15 , 2025
5 hrs 0 min
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- Finance Minister tabled the new income tax bill to cut through the jargon in the 1961 Income Tax Act and make it easier to understand.
- The present law had over 800 sections whereas the proposed law had only 536.
- The new tax system is built on five core principles, which make it 'S.I.M.P.L.E' for people to follow and to enforce.
- These five principles were explained as: "Streamlined structure and language, Integrated and concise, Minimised litigation, Practical and transparent, Learn and adapt, and Efficient tax reforms".
- There are 23 chapters, fewer than half the 47 chapters in The Income-tax Act.
- There are 16 schedules, two more than in the Act.
- The Bill introduces the concept of “tax year”, which has been defined as the 12-month period beginning April 1.
- Virtual digital assets such as cryptocurrencies have been included in the definition of property to be counted as a capital asset of the assessee.
- The bill was referred to a joint parliamentary committee - which will examine the new tax proposals and make changes, if needed.
- The new law will take effect from April 1, 2026.
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