Union Finance Minister Nirmala Sitharaman on Thursday tabled the New Income Tax Bill 2025 in Lok Sabha, which intends to streamline tax obligation legislations, modernise interpretations, and supply even more quality on numerous tax-related issues, ANI reported.
As per ANI, the federal government’s brand-new expense looks for to change the existing 1961 Income Tax Act and present modifications that impact various groups of taxpayers, consisting of people, companies, and charitable organisations.
After offering the earnings tax obligation expense the Finance Minister asked the Lok Sabha Speaker Om Birla to choose participants for a standing board to evaluate the recently tabled earnings tax obligation expense.
Notably, the brand-new expense presents streamlined language and modern-day terms, by changing out-of-date terms and generating brand-new ones to line up with today’s economic situation, ANI mentioned.
According to ANI, it presents the term “tax year” as opposed to the existing terms like fiscal year and analysis year systems. It likewise specifies “virtual digital asset” and “electronic mode”, mirroring the expanding significance of electronic deals and cryptocurrency in today’s economic landscape.
In regards to extent of complete earnings, the brand-new expense preserves the existing tax obligation concepts while making sure explanations. Under the previous legislation, Sections 5 and 9 of the Income Tax Act, 1961, it specified that the Indian citizens were exhausted on their worldwide earnings, while non-residents were exhausted just on the earnings they gained in India.
The brand-new expense, in Clauses 5 and 9, maintains this regulation yet supplies a much more clear interpretation of regarded earnings, such as repayments made to particular people, making tax obligation guidelines extra clear for non-residents, ANI reported.
Moreover, the expense brings modifications to reductions and exceptions. Earlier, Sections 10 and 80C to 80U of the Income Tax Act, 1961, enabled reductions for financial investments, contributions, and particular expenditures.
The brand-new expense, under Clauses 11 to 154, combines these reductions and presents brand-new arrangements to sustain start-ups, electronic companies, and renewable resource financial investments, ANI reported.
As per ANI, modifications have actually likewise been made to the term funding gains tax obligation. Under the previous legislation, Sections 45 to 55A categorised funding gains right into temporary and long-lasting based upon holding durations, with unique tax obligation prices for safety and securities.
The brand-new expense, in Clauses 67 to 91, maintains the exact same categorisation yet presents specific arrangements for online electronic properties while upgrading advantageous tax obligation prices. This makes sure that electronic properties, such as cryptocurrency, are covered under an appropriate tax obligation structure.
In the previous legislation, under Sections 11 to 13, charitable organisations were given earnings tax obligation exceptions for sure philanthropic objectives yet had actually restricted conformity standards, ANI reported.
The brand-new expense, in Clauses 332 to 355, develops a much more thorough structure by plainly specifying gross income, conformity guidelines, and limitations on industrial tasks. This not just presents a more stringent conformity regimen yet likewise supplies distinct exceptions.
Overall, the Income Tax Bill 2025 objectives to streamline tax obligation legislations, motivate electronic and start-up financial investments, and bring better quality in taxes plans for companies and non-profits, ANI reported.
The federal government thinks that these modifications will certainly make tax obligation conformity simpler while making sure a reasonable tax obligation framework for all groups of taxpayers.
(With ANI inputs)
