[BREAKING] New Income Tax Bill 2025 Out Now, set to be Tabled Soon [Read Bill PDF]

The New Income Tax Bill, set to be tabled at the Lok Sabha by the Union Finance Minister Nirmala Sitharaman is out now. This is set to replace the decades old Income Tax Act of 1961. The Bill has 536 Section and 16 (XVI) Schedules and is set to name the upcoming act as Income Tax Act, 2025.

Finance Minister Nirmala Sitharaman had stated during the Budget 2025 Speech that the new tax bill would carry forward the spirit of 'Nyaya' (justice), similar to the Bharatiya Nyay Sanhita that replaced the Indian Penal Code in July 2024. She highlighted that the bill would be clear and direct, with nearly half of its provisions being new, aiming to provide certainty and reduce litigation. 

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The introduction of the New Income Tax Bill 2025 is expected to have significant implications for taxpayers across India. 

The simplification of tax laws and reduction of exemptions may affect various sectors differently. For instance, the real estate sector in Kerala, which has seen fluctuating demand, might experience changes in tax liabilities, potentially influencing property prices and investment decisions.

Simplification of Legal Language — The bill seeks to make tax laws more accessible by using clear and straightforward language, reducing the need for specialized legal knowledge and helping better, easier compliance by citizens. 

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Reduction in Tax Slabs — The new tax regime introduces lower tax rates across various income levels, aiming to provide relief to taxpayers and encourage higher disposable income. 

Trust-Based Self-Assessment — By adopting a "Trust First, Scrutinize Later" approach, the bill focuses on building taxpayer confidence while ensuring adherence to tax regulations. 

No Introduction of New Taxes — The bill does not propose additional taxes but aims to simplify existing tax laws, ensuring stability and predictability for individuals and businesses. 

Inclusion of Budget Announcements: The bill integrates important tax changes announced in the national budget, including revisions to income tax rates and Tax Deducted at Source (TDS) provisions, creating a unified framework for taxpayers. 

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Additionally, the bill's emphasis on ease of compliance could lead to increased tax collections and better enforcement, potentially impacting government spending on infrastructure and public services in Kerala.

As the bill progresses through Parliament, stakeholders across the state are closely monitoring its developments to understand its full impact on the economy and individual finances.

To Read the full text of the Bill CLICK HERE

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