New Delhi:
Finance minister Nirmala sitarman Tabled New income tax bill – What he mentioned in his budget speech on 1 February, and is expected to reduce the jargon in the 1961 Income Tax Act, making it easier to understand and implement in Parliament on Thursday.
However, as soon as he got up to introduce the bill, some members of the opposition staged the walk-out and others raised fierce questions on him. Manish Tiwari of Congress and NK Premchandran of RSP suggested that the new tax bill is actually more complex than the old. Ms. Sitaraman said that MPs were wrong; He said that the current law had more than 800 sections while the proposed law had only 536.
Trinmool MP Saugata Roy then criticized the new bill as “mechanical”, in which Ms. Sitarman shot back, “… enough changes are being made. The number of words has reduced by half .. .
Those opposition members who remained then opposed the bill – even at this level – but the House passed the resolution through a voice vote for the table of the proposed new law.
Ms. Sitarman then sent the bill to a joint parliamentary committee – which will investigate the new tax proposals and change if necessary – before it is re -prepared in the House to pass.
JPC is expected to submit its report on March 10 on the first day of the second half of the budget session. This committee will be established by Lok Sabha Speaker Om Birla.
Shortly after tabling the bill, Ms. Sitarman’s office tweeted, “The new Income Tax Bill (2025) is placed in Parliament. The aim of the bill is to simplify the language of the current law. Available on our website .. .
What is a new income tax bill?
The new law will be effective from April 1, 2026. However, this will not change the current tax slab.
The proposed changes and amendments have a concept of a ‘tax year’, which will replace the ‘financial year’, or fY, and ‘accounting year’, or simultaneous use of AY. In other words, under the current Income Tax laws, tax for income earned in 2023/24, for example, is paid in 2024/25.
The proposed change will show the beginning of ‘tax year’, so tax will be paid on the income earned in one year that year. It has also left fruitless classes, such as ‘Fringe Benefit Tax’.
Read | Reader friendly, easy tables for calculation in new income tax bill
Tables are included for TD -related provisions, or tax deduction at the source, ‘prescribed taxation’, deduction for salary and poor loans.
Overall, it tries to change the 1961 Act, which was voluntary due to the amendments made in the last 60 years. Speaking this afternoon, Ms. Sitarman said, “The Income Tax Act was originally implemented in 1961 and came into force in 1962.”
“At that time he had 298 blocks. But, as time passed, more sections were added. And, as standing today, there are 819 … This, from this, we are bringing it down in five,” he explained . ,
Tax proposal in Union Budget 2025
The 1st February budget of Ms. Sitarman was three major individual income tax announcements. The first, and possibly the largest, was increasing the tax exemption limit.
Starting from FY2025/26, people whose salary is up to Rs 12 lakh (including standard deduction is Rs 12.75 lakh), will not pay taxes. Ms. Sitarman also rotated the tax slab for the new regime, added 25 percent bracket for salary within Rs 20 lakh – in the category of Rs 24 lakh.
Read | Big budget boost for middle class: no income tax up to Rs 12 lakh
The tax proposals were pleased by Prime Minister Narendra Modi and the ruling BJP members, and many political analysts believe that the saffron party script was helped in a major victory in the last week’s Delhi assembly elections; The BJP stopped 48 out of 70 seats in Delhi from winning the AAP from winning the third gradual tenure. The BJP jointly won just 11 seats in the first two elections.
