Do you know these things related to new income tax bill?
The government of india has introduced the new income tax bill in Parliament. After passing from there, it will be sent to the Standing Committee of parliament for discussion. If everything goes well, it can be implemented from april 1, 2026. By bringing the new bill, the 823-page Income Tax Act of 1961 has been condensed into 622 pages.
That is, 201 pages have been reduced, which will make it easier to read and understand. The law will have 536 sections, 23 chapters and 16 schedules. Even though the number of sections is high, the law has become shorter and simpler due to less clarification and provision.
Old tax regime will also remain in force
The new tax regime will remain the default, but the old tax system has also been retained. Taxpayers who want to adopt it can apply separately for it. Under section 44AD, the limit for business has been increased from Rs 2 crore to Rs 3 crore, while for professionals the limit has been increased from Rs 50 lakh to Rs 75 lakh. Cryptocurrency has been placed in the category of virtual wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital assets, which also includes property, jewellery, paintings, drawings and shares.
Chartered accountant's business will continue
Earlier there were speculations that company secretaries and cost and management accountants could also be included in tax audit, but section 515 (3) (b) clarifies that accountant will mean only chartered accountant. This news is a relief for the CA community. Similarly, now the assessment year will be called tax year and the previous year will be called financial year. The rates of long-term capital gain and short-term capital gain will remain the same as implemented last year. No changes have been made in these. After discussion in the standing committee of parliament, the form of the new Income Tax law may become a little more clear before its implementation.
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