Big News: Lok Sabha approves New Income Tax Bill, know what all will change?

On 11 August, Union Finance Minister Nirmala Sitharaman introduced the New Income Tax Bill 2025 in the Lok Sabha. This new bill is going to replace the old laws of the Income Tax Act 1961. This bill has been approved in the Lok Sabha.

If this bill is passed in the Rajya Sabha as well, then it can become a law very soon. Let us know what changes will come with the coming of the New Income Tax Bill 2025. How will it affect you?

What will change with the New Income Tax Bill 2025?

Many needs have been felt due to the Income Tax Act 1961 being old. Therefore, the New Income Tax Bill 2025 has been brought by the Central Government.

Under this bill, the language will be made simpler and clearer.

At the same time, options like Previous year and Assessment Year will be eliminated, and the tax year concept will be introduced.

Under this rule, CBDT has been given more power. So that digitalization can be promoted more.

It will be organized in 536 sections and 16 schedules, so that it is easy to understand and read.

Zero TDS certificate facility will be available.
Section 80M will be re-introduced for dividend deduction.
Even if ITR is filed after the deadline, there will be no problem in getting a refund. All such clauses that do not support it will be removed.
The New Income Tax Bill has simplified the rules related to property deduction (tax benefits related to property), such as

After Municipal Taxes, up to a 30% deduction benefit will be available.
The deduction available for pre-construction interest (such interest that is being paid before building the house) will apply to both, whether it is your own house or rented.
Tax will not be levied on business properties that are not being used or are vacant for a long time.
Clause 20 ensures that the income from the house will come under the tax net, and not just when the property is being used for professional purposes.

Changes in pension deduction
The part of the pension that the beneficiary takes as a lump sum is called the Commuted Pension. The benefit of deduction is also available on this amount.

But earlier, this was only for employees. Now it has been made available for non-employees as well. For example, people who take pension from LIC will get the benefit of deduction on taking the lump sum amount.

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