The Indian government has rolled out the Income Tax Bill, 2025, ushering in a new era of tax reforms aimed at simplifying compliance, boosting transparency, and relieving the tax burden on individual taxpayers and businesses. This bill is set to replace the six-decade-old Income Tax Act of 1961.https://box24news.com
What’s New in the Income Tax Bill, 2025?
📊 1. Easier Tax Rules
The new law has simpler language and fewer confusing terms. This makes it easier for everyone—whether you’re a salaried employee, business owner, or student—to understand your taxes.
💵 2. New Income Tax Slabs (For Financial Year 2025-26)
| Annual Income | Tax Rate |
|---|---|
| Up to ₹4 lakh | 0% |
| ₹4 lakh – ₹8 lakh | 5% |
| ₹8 lakh – ₹12 lakh | 10% |
| ₹12 lakh – ₹16 lakh | 15% |
| ₹16 lakh – ₹20 lakh | 20% |
| ₹20 lakh – ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
Good news: More income is now tax-free, and many people will pay less tax than before.
🎁 3. More Tax Rebate
If your total income is ₹12 lakh or less, you can now get a rebate of ₹60,000. This means many people won’t have to pay any income tax at all.
📉 4. Set Off Capital Losses
If you’ve had losses from selling shares or property (before March 31, 2026), you can adjust those losses against future profits. This helps you reduce the tax you owe in future years.
📝 5. New ITR-U Form
Made a mistake in your tax return? No worries! Now you can correct or update your return within 4 years. This new form makes it easier to stay on the right side of the law.
🚀 6. Startup Benefits
Startups can enjoy 100% tax exemption for 3 years (out of the first 10 years). This is a big boost for new businesses and entrepreneurs in India.
🔍 7. More Digital Monitoring
The tax department will have more access to digital data like trading apps, emails, and even social media in some cases. This is aimed at stopping tax fraud, but privacy concerns are being discussed.
📆 When Will This Start?
The new law will apply from April 1, 2026. This gives everyone time to learn and prepare.
💬 Final Thoughts
The Income Tax Bill, 2025 is a major step toward a simpler and smarter tax system. It makes things easier for most taxpayers and supports honest filing. But we also need to make sure personal privacy is protected.
For more details, visit the official website.
