Union Finance Minister Nirmala Sitharaman will present the country’s budget for FY 2025-26 on 1 February 2025. Nirmala Sitharaman announced the new Income Tax Bill in her budget speech. Which was approved by the cabinet under the chairmanship of Prime Minister Narendra Modi last week. Now the new Income Tax Bill of the country can be introduced in Parliament tomorrow i.e. Thursday, February 13. It was expected to be introduced next week after the cabinet approval on 7 February. After getting the cabinet approval, the Finance Minister spoke to the media on the matter.
A new income tax bill may be introduced tomorrow
Union Finance Minister Nirmala Sitharaman, while talking to the media on 8 February last week, said that the new Income Tax Bill would be introduced in Parliament next week. The Finance Minister said that after the bill is introduced in the Lok Sabha, it will be sent to the Standing Committee of Parliament for further discussion. He said that the Parliamentary Committee will give its recommendations on the bill, after which it will be sent back to the cabinet. Following the recommendations of the Parliamentary Committee, it will require the approval of the cabinet again. After approval, this bill will be re -introduced in Parliament.
Why will the new Income Tax Bill be introduced?
Let us tell you that the new Income Tax Bill 2025 is part of a major effort to improve India’s tax system. The aim of the new Income Tax Bill is to improve the existing tax system and make it more streamlined, simple and transparent.
Currently, this system in India is operated under the Rules of Income Tax Act 1961. After the new Income Tax Bill is passed, it will become the Income Tax Act, 2025 and will replace the Income Tax Act, 1961. The proposed bill will include simple language for the convenience of taxpayers and in an effort to simplify the tax rules and their streams, the number of sections can be reduced by 25-30 percent.
Changes in tax slab
- No tax will be levied on income up to Rs 12 lakh.
- Income of more than Rs 12 lakh and up to Rs 16 lakh will be taxed at 15 percent.
- Income ranging from Rs 15 lakh to 20 lakhs will be taxed at 20 percent.
- Income ranging from 20 lakh to 25 lakh rupees will be taxed at 25 percent.
- An amount of more than Rs 25 lakh will be taxed at 30%.
- Relief news for employed people
- No tax will be deducted on income up to Rs 12 lakh.
- No tax on earning 1 lakh per month
