RBI Grade BNABARD ESISEBI
In one line
Context:
Going forth with the New Income Tax Bill, 2025, it is slated to be presented at the Lok Sabha soon to desimplify and modernize tax laws by reducing complexity, redundant provisions, and improving clarity therein. If passed, this will effectively replace the Income Tax Act, 1961, taking force as from April 1, 2026.
Significant Changes in Income Tax Bill 2025
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Introduced the Concept of a ‘Tax Year’
- As the bill introduces tax year, which literally means a 12 months financial year which starts in April.
- It has been replacing the earlier terms of assessment year and previous year, thus bringing the terminology to the tax life.
Simpler and Less Complex
- Overall, the law was pruned from 520,000 word to 260,000 words.
- It has prudently reduced the number of pages from 823 to 622.
- Explanations and provisos have been incorporated directly in the section and subsections, minimizing legal complexity.
Clear Profits Definition and Taxation Rules
- Profits related provisions have been consolidated throughout the Act under Clauses 334 to 346.
- Ambiguous textual definitions now have replacement with more simpler and easier language.
Digital Taxation Adjustments
- All amendments regarding virtual digital assets will be incorporated from the Finance Bill 2025 into this bill.
- This is because VDA has an extended definition that seeks to bring crypto assets, NFTs, and other digital assets under clearer tax regulations.
Source: The Hindu
