Thu Feb 13 09:05:27 UTC 2025: **New Income Tax Bill 2025 Simplifies Salary Tax Definition**
**New Delhi, February 13, 2025** – India is poised for significant changes to its income tax system with the proposed Income-Tax Bill 2025. The draft bill, expected to be tabled in Parliament soon, aims to simplify the definition of taxable salary income and replace the concepts of “assessment year” and “previous year” with a single “tax year.”
A key feature of the bill is a clearer definition of income taxed under the “Salaries” head. The five heads of income remain unchanged: salaries, income from house property, profits and gains of business or profession, capital gains, and income from other sources. However, the bill clarifies that salary paid in advance will not be double-counted, and remuneration received by firm partners will not be considered salary income for tax purposes.
While the bill is expected to streamline the tax system, further revisions are anticipated before it fully replaces the Income-tax Act, 1961, likely by next year. The final version of the bill may differ from the current draft following parliamentary review.
First Piper 