New Income Tax Bill 2025 Explained: What’s Changed and What’s the Same?

India’s tax system might be set for a major transformation with the New Income Tax Bill 2025. In this video, we’ll take you through the key highlights of the bill, which aim to simplify, modernise, and streamline tax laws.

We’ll explore how the introduction of a unified “Tax Year” is said to replace terms like “Assessment Year” and “Previous Year,”. We’ll also look at how salary-related deductions like standard deductions, gratuity, pension, etc. might now be consolidated under Section 19 for easier access.

We’ll see how the presumptive tax scheme limits are to be increased for businesses and professionals, reducing compliance burdens. We’ll also break down the expanded definition of Virtual Digital Assets, bringing cryptocurrencies and NFTs into the tax framework. Additionally, we’ll explore how TDS provisions might be restructured under Section 393, making compliance simpler.

While some things are changing, tax slabs, standard deductions, ITR deadlines, key exemptions, etc. remain the same. With the bill under parliamentary review, we’ll keep you posted on what happens next!

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Key Takeaways

The New Income Tax Bill 2025 could simplify tax laws by removing redundant provisions and establishing a clearer framework

Terms like “Assessment Year” and “Previous Year” might be replaced with a unified “Tax Year” aligned with the financial year

Salary-related deductions, including gratuity, pensions, etc. could be consolidated under Section 19 for simplified tax calculations

The method for calculating depreciation on assets might be streamlined, making it easier for businesses to manage tax filing

Virtual Digital Assets such as cryptocurrencies and NFTs could be explicitly covered under the revised tax framework

The presumptive tax scheme limit might increase to ₹3 Crores for businesses and ₹75 Lakhs for professionals under revised sections

Tax authorities might gain access to taxpayers’ electronic records, including emails and online financial data, for investigation purposes

TDS provisions could be consolidated into a tabular format under Section 393, potentially making compliance more straightforward

Tax slabs, deductions, ITR filing deadlines, and key exemptions are expected to remain unchanged under the new bill

The bill is currently under parliamentary review and, if passed, might come into effect from April 1st, 2026

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All

The bill proposes to introduce a unified “Tax Year”, replacing “Assessment Year” and “Previous Year”, aligning tax reporting with the financial year. Salary-related deductions might be consolidated under Section 19, and TDS provisions could be restructured to simplify tax filing. This might make tax compliance easier without altering tax slabs or deadlines.

Your salary deductions might be grouped under Section 19, covering gratuity, standard deductions, pensions, and other benefits. This restructuring could make tax calculations simpler, but it does not change existing deduction limits. Your total tax benefits might remain the same, just under a more streamlined section.

If you are a business owner, you might see changes in the presumptive tax scheme. The turnover cap could increase to ₹3 Crores for businesses and the income threshold to ₹75 Lakhs for professionals. This might allow you to declare a fixed percentage of income as taxable profit, potentially reducing compliance burdens and paperwork.

If you own cryptocurrencies, NFTs, or other virtual digital assets, they might now fall under a clearer tax framework. The bill could provide specific provisions for these assets, ensuring compliance. However, tax rates on digital assets might remain the same, and no major changes have been confirmed yet.

The bill is currently under parliamentary review. If approved, it might take effect from April 1st, 2026. Until then, existing tax laws remain unchanged. The final version of the bill could see modifications before implementation based on government decisions and feedback.

Bajaj Finserv Direct Limited ("Bajaj Markets") offers to its customers, various financial products and services through its digital platform as a registered Corporate Agent with IRDAI, registered Investment Adviser with SEBI, and as DSA or Digital lending platform of its Partners. Further, Bajaj Markets also offers a marketplace e-commerce platform to facilitate transactions between customers and sellers on-boarded on the platform. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522 Corporate Agency (Composite) Registration no.CA0551 (valid till 10-Apr-2027) Investment Adviser, SEBI registration: INA000016083 (Validity - Aug 11, 2021 - Perpetual)

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