What is the New Income Tax Bill Announced?
The New Income Tax Bill 2025 introduces several landmark changes aimed at simplifying taxation and reducing the burden on taxpayers. Here are the key highlights:
1. Zero Tax on Income Up to ₹12 Lakh:
- Individuals earning up to ₹12 lakh annually will not have to pay any income tax, providing significant relief to middle-class taxpayers.
2. Revised Tax Slabs:
- The government has introduced new tax brackets to make taxation more progressive and equitable.
3. Standard Deduction Increase:
- pensioners will benefit from an increased standard deduction, helping reduce taxable income.
4. Simplified Compliance Procedures:
- The new bill aims to streamline tax filing, ensuring a hassle-free process for individuals and businesses.
5. Extended Filing Deadlines:
- Taxpayers now have up to four years to file updated returns, offering flexibility in tax compliance.
6. Tax-Free Withdrawals from National Savings Schemes:
- Withdrawals from National Savings Schemes (NSS) made on or after August 29, 2024, are exempt from taxation, encouraging long-term savings.
The New Income Tax Bill 2025 is designed to boost disposable income, simplify tax structures, and promote compliance while ensuring financial growth and stability.
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