New Income Tax Bill: This year, the central government has given a significant gift to the common man by reducing GST rates. In August 2025, the new Income Tax Bill 2025 was passed. The changes under this bill will come into effect next year. These changes will directly impact the common man.
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New Income Tax Bill: This year, the common man received many tax benefits. The central government has given the common man a significant gift by reducing GST. Additionally, the New Income Tax Bill (2025) was passed in August 2025. This bill will introduce several changes related to income tax, which will directly impact the common man.
When will the New Income Tax Bill be implemented?
Taxpayers will be able to take advantage of the new Income Tax Bill when filing their ITR next year. It will be implemented nationwide from April 2026. This will directly impact the common man. If you file your ITR every year, you should be aware of the changes under this bill.
What will change?
What will the New Income Tax Bill 2025 change?
- Due to the outdated Income Tax Act 1961, several needs have been identified.
- Therefore, the New Income Tax Bill 2025 was introduced by the Central Government.
- Under this bill, the language will be simplified and clarified.
- Options like Previous Year and Assessment Year will be eliminated and the tax year concept will be introduced.
- The CBDT has been given more power under this rule to promote digitalization.
- It will be organized into 536 sections and 16 schedules, making it easier to understand and read.
- Zero TDS certificates will be available.
- Section 80M will be reintroduced for dividend deductions.
- Even if the ITR is filed after the deadline, there will be no problem in getting a refund. All clauses that do not support this will be removed.
The new Income Tax Bill has simplified the rules for property deductions (property-related tax benefits), such as:
- Up to 30% deduction will be available after municipal taxes.
- Pre-construction interest (interest paid before the construction of a house) deduction will apply to both owned and rented properties.
- Business properties that are unused or vacant for a long time will not be taxed.
- Clause 20 ensures that income from a house will be taxable, not just if the property is used for professional purposes.
Changes in Pension Deduction
The portion of pension that beneficiaries receive as a lump sum is called commuted pension. This amount is also eligible for deduction. However, this was previously limited to employees. Now, it has been extended to non-employees as well. For example, individuals who receive pension benefits from LIC will also receive the deduction for the lump sum.
