Understanding The New Income Tax Bill 2025

Pragya Pathak

Author

Updated: 16-04-2025 at 12:38 PM

One of the most significant things that affect every citizen of the country is its taxation laws, more specifically the Income tax laws. Every year, every nation’s government introduces some changes and amendments to the existing laws governing various systems and policies. This is done to ensure that the laws don’t outdate the dynamic nature of people and life in general.

Recently, the Union Cabinet approved a New Income Tax Bill expected to be announced soon by the officials. The new bill would replace the Old Income Tax Act of 1961. Every citizen must be aware of the changes that govt introduces as it has a direct impact on their lives.

Read the news article to know why the new income tax bill is being introduced and what can be expected from it.

Reason For Introducing A New Income Tax Bill

The Old Income Tax Act of 1961 has been in use for decades and has been modified time and again which made it complex instead of easy. It was getting difficult for the taxpayers to understand it and find their way to it which led to the birth of the New Income Tax Bill 2025. The New Bill would aim to:

Remove the legal ambiguities.
Make the tax laws comprehensible and easier to understand.

Expectations From The New Income Tax Bill 2025

The New Income Tax Bill 2025 will be announced soon. However, people can expect it to have the following provisions :

1. Comprehensible Tax Structure

One of the major expectations of the bill is to simplify the tax structure by focusing on the framing of the sentences and removing the unnecessary and outdated provisions that were present in the Old Income Tax Act of 1961.

2. No More Waiting For Budget For Tax Reliefs

One of the other major features of the New Bill could be that people won’t have to wait for the announcement of a Budget of any kind for income tax relief or amendments in the Income Tax Act.

3. Modifying Limits

According to some reports, the New Bill would also force the government to go through executive orders first to modify any limits or introduce deductions/rebates.

4. Digital Taxation

Experts are also expecting the New Bill to shift its focus from a traditional paper approach to a digital and tech-friendly approach. The New Income Tax Bill 2025 would probably operate through a digital tax filing system to be more efficient and secure. This would also help the government in reducing the instances of suspicious activities like corruption and cheating practices.

5. Trust

The New Income Tax Bill would be lenient on the taxpayers and would choose to trust people first instead of putting them under scrutiny directly.

Conclusion

The to-be-announced New Income Tax Bill 2025 is expected to have a great impact on both, taxpayers and the nation as a whole. The new bill would simplify the laws and the lives of the people.

Stay updated with Jaagruk Bharat to get the latest information on government schemes and more, and reach out to us via our community page if you have any questions or you wanna share your thoughts.