The new Income Tax Bill 2025 has introduced several changes aimed at simplifying the tax system and making it easier for taxpayers to understand and comply with the rules. Here are some key highlights:
Simplification and Clarity
- The new bill aims to eliminate intricate language, remove redundant provisions, and logically reorganize sections.
- The concept of "tax year" has been introduced, replacing "previous year" and "assessment year" to reduce confusion.
Tax Slabs for FY 2025-26 (AY 2026-27)
- **Up to ₹4,00,000**: NIL
- **₹4,00,001 - ₹8,00,000**: 5%
- **₹8,00,001 - ₹12,00,000**: 10%
- **₹12,00,001 - ₹16,00,000**: 15%
- **₹16,00,001 - ₹20,00,000**: 20%
- **₹20,00,001 - ₹24,00,000**: 25%
- **Above ₹24,00,000**: 30%
Provisions for Salaried Employees
- All provisions related to salary have been consolidated in one place for ease of understanding.
- Deductions like gratuity, leave encashment, and commutation of pension are now part of the salary chapter itself.
General Anti Avoidance Rules (GAAR)
- The new bill allows tax authorities to issue reassessment notices under GAAR for tax years that fall outside the current time limits, with safeguards against misuse.
Virtual Digital Assets
- Specific provisions have been introduced for the taxation of virtual digital assets.
These changes are designed to make the tax system more transparent and user-friendly. If you have any specific questions or need more details, feel free to ask!