These 8 major changes can be made in the new income tax bill!
Union Finance minister Nirmala Sitharaman, while presenting the Budget 2025-26 on february 1, has made a big announcement that a new Income Tax Bill will be introduced in parliament next week. This bill will replace the existing Income Tax Act, 1961 and its aim will be to make the income tax process more simple and clear. The biggest thing is that this law of income tax is going to change after almost 6 decades. Therefore, it is important to know what can be in this new income tax bill. Let's know about it in detail in this news.
What can be in the new tax bill?
Finance minister Nirmala Sitharaman has announced the introduction of a new Income Tax Bill next week. Let's know what possible changes can be made in this bill.
Simple language and fewer provisions: It will be easier for taxpayers to understand.
Promotion of wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital process: Tax filing can be completely digitalized.
Reduction in litigation: Measures will be taken to reduce legal disputes.
Single 'tax year': Assessment year and financial year can be combined to form a tax year.
Reduction in deductions and exemptions: Tax structure can be made straightforward and simple.
15 percent tax on dividend income: This can bring equality in all income categories.
35 percent standard tax for high income group: This can be implemented by removing the existing surcharge.
Simplification of capital gains tax: There can be a uniform tax rate on different assets.
According to the government, this new law will replace the 63-year-old Income Tax Act, 1961 and amendments will be possible based on the feedback of taxpayers. Let us tell you, under the Income Tax Act 1961, the government implemented the new tax regime in the year 2020.
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