Quick Highlights of New Income Tax Bill 2025 | जानिए नए टैक्स बिल की मुख्य विशेषताएं क्या हैं ?

Summary

In this video, Anoop Ji explains the key differences between the proposed Income Tax Act of 2025 and the current Income Tax Act of 1961. He highlights the simplification of language, the introduction of the 'Tax Year' concept, and the removal of redundant provisions. While the core principles of tax deductions (like sections 80C, 80D, and 87A) remain unchanged, the new act aims to make tax compliance easier without significant structural changes. Despite the increased number of sections, the law is streamlined for better clarity. Overall, the 2025 Act simplifies the existing framework for better accessibility.

Takeaways

• 😀 The new Income Tax Act 2025 will replace the current Income Tax Act 1961 once it receives approval from the Indian government.
• 😀 The new law simplifies language and removes redundant provisions, making it easier for taxpayers to understand.
• 😀 The terminology 'Previous Year' and 'Assessment Year' will be replaced by 'Tax Year' in the new Act to eliminate confusion.
• 😀 The new Income Tax Act 2025 will have 536 sections, spread across 52 chapters, compared to 298 sections in the current law.
• 😀 Both the old and new tax regimes will continue to exist, with the old regime offering deductions like 80C, 80D, and 87A.
• 😀 The new law will maintain existing provisions, such as standard deductions and filing deadlines, without significant changes.
• 😀 The concept of Hindu Undivided Family (HUF) remains intact under the new Income Tax Act 2025.
• 😀 The 'Notwithstanding' term will be replaced with 'Irrespective of' to simplify the understanding of provisions in the law.
• 😀 A key change is the introduction of simplified table formats for deductions, such as salary-related deductions, instead of scattered provisions.
• 😀 The primary aim of the new law is to simplify and restructure tax provisions while maintaining the core principles of revenue collection.
• 😀 While the new Act simplifies the language and structure, the complexity of revenue laws might still make them challenging for the average taxpayer.

Q & A

What is the primary difference between the proposed Income Tax Act 2025 and the existing Income Tax Act 1961?

The proposed Income Tax Act 2025 aims to simplify the language used compared to the 1961 Act, removing redundant provisions to reduce confusion. It also intends to replace the terms 'Assessment Year' and 'Previous Year' with a single term 'Tax Year'.

When will the new Income Tax Act 2025 become applicable?

The new Income Tax Act 2025 is expected to come into effect from the financial year 2026-27, while the current Act will remain applicable for the financial year 2025-26.

What changes have been made in the terminology related to 'Previous Year' and 'Assessment Year'?

The new Act introduces the concept of 'Tax Year' to replace the existing terms 'Previous Year' and 'Assessment Year', making it easier for taxpayers to understand the tax filing process.

Will the number of heads of income change in the new Income Tax Act 2025?

No, the number of heads of income remains the same in the new Act. The five existing heads—Salaries, House Property, Business & Profession, Capital Gains, and Income from Other Sources—will continue to be used.

How has the structure of sections in the new Income Tax Act 2025 been altered?

While the new Act has more sections, totaling 536 compared to 298 in the old Act, the overall structure has been simplified. Redundant provisions and lengthy explanations have been removed, resulting in a more streamlined law.

What impact does the proposed Income Tax Act 2025 have on the existing tax regime?

The new Act will continue to allow both the old and new tax regimes, giving taxpayers the option to choose between them. Deductions like Section 80C, 80D, and rebates under Section 87A will still be available under the old regime.

How does the proposed Income Tax Act 2025 impact the Standard Deduction for salaried employees?

The Standard Deduction of ₹50,000 for salaried employees will remain the same under the old regime, while the new regime will not offer any Standard Deduction.

Are there any changes in the process of filing Income Tax Returns (ITR) under the new Act?

No significant changes are expected in the filing process. The due dates for non-audited cases (31st July) and audited cases (31st October) will remain the same as per the current Act.

What is the fate of the HUF (Hindu Undivided Family) concept in the new Income Tax Act 2025?

The concept of HUF will continue to exist in the new Act, and there will be no changes in the provisions related to HUF.

What is the significance of the change from 'Notwithstanding' to 'Irrespective' in the new Income Tax Act 2025?

The change from 'Notwithstanding' to 'Irrespective' aims to simplify the language of the law. It ensures that provisions override others without creating confusion, thus making the law easier to understand.