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New Income Tax Bill, 2025: Section 80D is now 126 clause under the new bill, Section 80E Claus is 129, Section 87A Claus is 157; Know all the major segments under the new Income Tax Bill:
New Income Tax Bill 2025.
Income tax bill 2025: Finance Minister Nirmala Sitarman organized the Income Tax Bill, 2025 in Parliament on Thursday. This new bill set to be effective from April 1, 2026, once passed, tries to simplify the Income Tax law in India. It has reorganized various categories such as cuts, discounts, discounts, capital benefits and various classes such as income from other sources.
It has comparative mapping of some of the most common classes under the current Income Tax Act, 1961, and their respective sections in the Income Tax Bill, 2025.
1. Deduction
The deduction helps taxpayers to reduce their taxable income by investing in various devices such as FD, ELSS and Green Bonds. These are only available under the old Income Tax regime. The new bill has re -handed over the cut in different clause numbers:
, Section 80 C (Cut for investment in PPF, NSC, Life Insurance Premium, etc.) → → Section 123
, Section 80D (Cut for medical insurance premium) → Section 126
, Section 80E (Cut on interest paid on education loan) → Section 129
, Section 80G (Cut for donation and money for money) → Section 133
Importantly, these sections will become sections after the Income Tax Bill is passed by 2025.
2. Discount
Rebate directly reduces the tax liability of eligible taxpayers. For example, the Union Budget 2025-26 was exempted from income tax annual income from Rs 12 lakh (except a standard deduction of Rs 75,000). However, any income on it will be taxable. This is a discount. The most common discount provision has been rebuilt:
, Section 87A (Exemption for persons with income below a specified threshold- Rs 12 lakh declared in budget 2025-26) → Section 157
3. capital gains
Capital profit exemption and taxation rules have also been rebuilt:
, Section 58 (Rebate on capital gains from selling residential property) → Section 82
, Section 54EC (Rebate on capital gains on investing in specified bonds) → Section 85
4. Set-offs and damage forward
Taxpayers can compensate for losses against benefits under specific provisions. The following sections are re -assigned:
, Section 70 (Set of loss from one source against income from under the same head from the other) → Section 108
, Section 71 (Set of a head damage against income from the other head) → Section 109
The entire mapping of all classes can be read here from Income Tax Act, 1961 to Income Tax Bill, 2025: https://incometaxindia.gov.in/documents/Come- tax-bill-2025/new-bill-20-2025- Navigator.pdf,
Implication for taxpayers
With these changes, taxpayers need to be updated on the new numbering system to deduct and implement the discount correctly. It is advisable to consult with tax professionals to ensure compliance under the new structure and maximize tax benefits.
Income tax bill, 2025, is aimed at simplifying the current Income Tax Act.
