Wed Feb 12 16:49:55 UTC 2025: ## New Income Tax Bill 2025 to be Tabled in Lok Sabha

**New Delhi, February 15** – The much-anticipated Income Tax Bill 2025, aiming to replace the 60-year-old Income Tax Act of 1961, is slated for presentation in the Lok Sabha today. Finance Minister Nirmala Sitharaman announced the bill on February 1st, and it received cabinet approval on February 7th. The 622-page bill, significantly shorter than its predecessor, promises a simplified tax structure with clearer language and a reduction in the number of sections by 25-30%.

Key features of the bill include:

* **Simplified Language and Structure:** The bill aims to make tax laws more accessible to taxpayers through clearer wording and a more concise structure. The number of sections has been reduced from approximately 823 to 536.
* **Revised Tax Slabs:** The new tax regime introduces revised tax slabs, with zero tax for those earning up to ₹12 lakh (due to a standard deduction of ₹75,000). Higher income brackets will face increased tax rates.
* **Exemptions and Deductions:** While the new tax regime offers fewer exemptions than the old one, it does include deductions for leave encashment, voluntary retirement, and employer contributions to the National Pension Scheme and EPF. House rent allowance (HRA) exemptions are not included.
* **Tax Year Concept:** The bill introduces a “tax year” concept, replacing the previous “previous year” and “assessment year” terminology, to enhance clarity.
* **Extended Filing Dates:** The tax audit filing date is extended to October 31st, and the income tax filing deadline is extended to November 30th.
* **Increased Presumptive Income Tax Limits:** The limits for presumptive taxation have been raised for businesses and professionals.
* **Empowered CBDT:** The Central Board of Direct Taxes (CBDT) will have greater autonomy to frame tax administration rules and compliance measures, streamlining the process.

Following its passage in the Lok Sabha, the bill will be sent to the Parliamentary Standing Committee on Finance for review and further discussion before returning to Parliament for final approval. The bill is expected to come into effect in April 2026. While the government anticipates a smoother, more transparent tax system, some minor adjustments are expected based on stakeholder feedback received through the income tax portal.

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