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How the New Income Tax Bill 2025 Can Impact You
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....ow the New Income Tax Bill 2025 Can Impact You<br>By: - Workspacetool<br>Income Tax<br>Dated:- 4-8-2025<br>In the Monsoon session of the parliament, which is being held between 21st July to 21st August, a new Income Tax bill was introduced. The main purpose behind this bill was to make the old Income Tax Law simple and easy to understand, with less tax compliance. The government proposed this bil....
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....l keeping in mind the small businesses and freelancers, so that they can understand it more easily and can save and plan better. In this blog, we will understand how the new Income Tax Bill will affect you as a taxpayer and what makes it different from the old existing one. About the Income Tax Act, 1961 The INCOME TAX ACT,1961, in India, provides income tax rules. It tells about how the taxes ....
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....are charged, collected, and managed by the government. It consists of 298 sections, 23 chapters, and 14 schedules and provisions related to deductions, assessment procedure, penalties, special benefits, rebate, surcharge, and computation of total income, etc. This act applies to the whole of India, including Jammu and Kashmir, whether resident or non-resident, and earning income in India. ....
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.... Various heads under the total income computation include: * Salary income * Income from house property * Capital gain and other sources * Business profits Why a New Income Tax Bill in 2025? The existing Income Tax Act, 1961, has undergone many changes from the date it was made effective till now. Various amendments, exemptions, rates, limits, provisos & circulars, which made it very com....
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....plex to understand, so a new law was in demand by taxpayers, experts. This caused a lot of problems while filing tax returns, understanding procedures, and tax compliance by small businesses, startups, and freelancers. This is why the New Income Tax Bill was introduced to make complex provisions easier, reducing disputes and litigation, and keeping it fairer for each and every taxpayer out there....
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..... Key proposed changes in the Bill The New Income Tax Bill consists of 600 pages, 536 sections, 23 chapters, and 16 schedules. The provisions are given in such a way that it can be understood by taxpayers easily, making tax compliance better and thereby reducing litigation. Here are some proposed changes. Let's dive in: * The sections are reduced, and the introduction of tables and formulas w....
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....ill make it easier to understand. * It replaced the old definition of 'previous year & assessment year' with 'Tax year', giving more clarity. * The definition of 'Virtual Digital Assets' will now be treated as undisclosed income and will include cryptocurrencies, non-fungible tokens(NFTs), and others as may be specified by the government. * It has made compliance easier with streamlined proc....
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....esses and also includes the use of modern compliance mechanisms. * The Tax officer will also check the electronic data, and the assessee has to give access whenever asked. This includes all the online platforms. * It provides clear and improved provisions relating to appeal and recovery. Areas that will remain Unchanged The areas that will remain unchanged are given as under: * Tax r....
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....ates and slabs with other limits will remain unchanged * Both the old and new tax regimes will continue to exist. * Deductions will remain unchanged and simple to understand. * All the heads of income will remain unchanged. * TDS/TCS will be grouped under the same section. * Offences and penalties will remain as it is. * For Appeal and recovery, only the structure is changed for better....
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.... understanding. Benefits of the New Income Tax Bill on Taxpayers The main purpose behind introducing the New Income Tax bill was to make it easier and understandable for the taxpayers, though it has more sections, but with clear and simple provisions. Here are a few benefits you will get from it: * Complexity will be reduced * Structured and fewer deductions and exemptions * Streaml....
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....ines tax compliance * Reduce multiple legal interpretations. * More relaxed and beneficial tax structure for taxpayers * Reduce litigation and disputes Impact of the new bill Let's understand the impact of the New Income Tax Bill on Individuals and businesses. For an individual taxpayer: Power to access digital accounts, including offshore accounts, cryptocurrency exchanges, and trading ....
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....through social media, has been given to tax officers; people doing any of these can expect strong search and investigation by tax officers. For businesses: Businesses must be aware of the rising cost of legal and digital maintenance of records and should adopt digital compliance in their financial reporting to avoid any kind of penalty because of inaccurate and unorganised records. Conclusion ....
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....The New Income Tax Bill, 2025 is introduced to streamline the processes and make the provisions clear and simple without changing the slabs, exemptions and limits. So that every individual taxpayer, small business or startups doesnt spend more time on dispute resolution and litigation and can focus more on saving money and planning for the future. It has not been passed yet and changes are still p....
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....ossible. Each and every taxpayer should be aware of the benefits of the bill and what is being introduced. In the future, we will have an easier, less complex, technology-driven tax system. So keep yourself updated with the changes it is bringing by replacing the existing Income Tax Act, 1961, and focus on how it can change your way of understanding the tax laws.<br> Scholarly articl....
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....es for knowledge sharing by authors, experts, professionals ....