Jobaaj Stories
On Thursday, February 13, 2025, Finance Minister Nirmala Sitharaman introduced the new Income Tax Bill in the Lok Sabha. The bill aims to make taxes easier for people to understand and follow. Here’s what you need to know about the changes:
Easier Language
The new bill uses simpler language, making it easier for taxpayers to understand. While the bill has many sections, it is shorter because unnecessary details have been removed.
‘Tax Year’ Instead of ‘Assessment Year’
The bill replaces the term "assessment year" with "tax year." This change will start from April 1, 2026. The goal is to make the tax process clearer and more straightforward.
Increased Limits for Business and Professionals
For businesses, the tax limit under section 44AD has increased from Rs 2 crore to Rs 3 crore. For professionals, the limit has gone up from Rs 50 lakh to Rs 75 lakh. This helps small businesses and professionals pay taxes more easily.
Old and New Tax Regimes
The old tax system will still be available, but the new tax system with lower tax rates and fewer exemptions will be the default. People can still choose the old system if they prefer.
Review by Parliamentary Committee
Once the bill is passed in the Lok Sabha, it will be sent for review by a Parliamentary Standing Committee on Finance. This committee will check the bill before it moves to the Rajya Sabha.
How to Read the Bill
You can read the full Income Tax Bill on the official Lok Sabha website once it is updated. This will help you stay informed about the changes.
