The New Income Tax Bill 2025 can be introduced in the Lok Sabha soon and before this its draft copy has come out, which is more than 600 pages long. As was being speculated earlier, it will be in simpler language as compared to the old Income Tax Act and many words included in it will be changed or removed.
This is also visible in the draft. Now the entire 12 months of the financial year will be called Tax Year, while the word Assessment Year will not be used. Apart from this, the picture has been clarified in the draft from standard deduction to capital gains tax. This New Tax Bill will come into effect from April 1, 2026.
Capital gains rates remain unchanged
According to this draft of 622 pages and 536 sections, the use of assessment year has ended and now it has been defined as tax year. The entire 12 months of the financial year will now be called tax year. No change has been made in the period of short term capital gains for the stock market in the draft. Under section 101 (b), a period of up to 12 months will be considered as short term capital gains. Apart from this, its rates have also been kept the same. Short term capital gain tax has been retained at 20%.
The number of pages in the Income Tax Act has been reduced
Another big change has been seen in the New Income Tax Bill 2025. That the number of pages in it has been reduced. It has become much less as compared to the Income Tax Act 1961 which was 63 years ago. Let us tell you that there were a total of 880 pages in the Tax Act 1961, which has now been reduced to 622. However, the chapter number has been kept as it is 23.
CBDT gets this right
The next big change in the New Tax Bill as compared to the Income Tax, 1961 is related to the Central Board of Direct Taxes i.e. CBDT. According to the bill draft, earlier the Income Tax Department had to approach the Parliament to start various tax schemes, but according to the New Tax Act 2025, now CBDT has been given the right to start such schemes independently. Its purpose is to eliminate the problem of bureaucratic delays.
It is clear that according to the New Tax Act, CBDT can now prepare and present tax related administrative rules without making repeated legislative amendments as per section 533. Along with this, it can implement a digital tax monitoring system.
No change in tax regime
Along with this, no change has been made regarding the New Tax Regime in the new tax bill 2025 and the rates announced in the budget will remain the same. Slabs have been changed in the new tax regime and income up to Rs 12 lakh has been kept out of income tax. Apart from this, the standard deduction under the new tax regime will be Rs 75,000 and in the old tax regime it will be Rs 50,000.
New tax slab 2025
Income up to Rs 4 lakh No tax
- 4 lakh From Rs 1 to Rs 8 lakh 5 per cent tax
- 8 lakh From Rs 1 to Rs 12 lakh 10 per cent tax
- 12 lakh From Rs 1 to Rs 16 lakh 15 per cent tax
- 16 lakh From Rs 1 to Rs 20 lakh 20 per cent tax
Let us tell you that this New Tax Act 2025 was approved in the Union Cabinet meeting led by PM Narendra Modi last week and now it will be introduced in the Lok Sabha, after which it will be sent to the Standing Committee for detailed discussion.
Related Articles:-
- Top 5 Government Loan Schemes For Women in India
- Govt Scheme: This special scheme for pensioners will start from April 1, know the full details here
- RBI Rule: Can we withdraw money from our account even after the bank closes? Know the rules
- How to open a mutual fund account for minors? A step-by-step guide
- Kotak Mahindra Bank cuts interest on savings account by 50 bps. Check here
