These 8 big changes happy in the new income tax bill new income tax law will be implemented in the count after 6 decades

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 current Income Tax Act, 1961 and its purpose 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 about 6 decades. Therefore, it is important to know what can happen in this new income tax bill. Let us know about it in detail in this news.

What can happen in the new tax bill?

Finance Minister Nirmala Sitharaman has announced the introduction of a new Income Tax Bill next week. Let us know what possible changes can happen in this bill.

1. Simple language and low provisions: It will be easy for taxpayers to understand.
2. Promotion of digital process: Tax filing can be fully digital.
3. Reduction in litigation: Measures will be taken to reduce legal disputes.
4. Single ‘Tax Year’: A tax year can be made by mixing assessment year and financial year.
5. Decision and reduction in discount: tax structure can be straightened and simplified.
6. 15 percent tax on dividend income: This can bring equality in all income categories.
7. 35 % standard tax for higher income group: The existing surcharge can be implemented by removing it.
8. Capital gains tax simplification: There may be a similar tax rate on different properties.

According to the government, this new law will replace the 63 year old Income Tax Act, 1961 and it will be possible to amend it based on the response of taxpayers. Let us tell you, under the Income Tax Act 1961, in the year 2020, the government implemented a new tax regime.

Law will change after 63 years

The current Income Tax Act was implemented on 1 April 1962. The government is now going to bring a new income tax bill, if this law is enacted, then after about 63 years, the income tax law will change in the country. However, the new income tax bill is not about today, but the government had indicated about it during the budget in July 2024 itself. At that time, the government had said that the country needs a new income tax law.

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