The government has introduced a new Income Tax Bill in Parliament. Now it has been sent to the Parliamentary Committee for detailed deliberations. Many changes are going to be made in this bill regarding income tax. The Indian Penal Code (IPC) has recently been replaced by the Indian Judicial Code (IJC) in the country. In which work was done to simplify the language of law and remove many such provisions. Which were not necessary according to today’s needs. Now the government is going to do the same with the Income Tax Act-1961.
Government introduced ‘Income Tax Bill-2025’
The government has introduced the ‘Income Tax Bill-2025’ to make its language understandable for the general taxpayer, remove unnecessary provisions and reduce legal disputes in courts. The new Income Tax Bill has currently been sent to the Parliamentary Committee for consideration. The committee will give its suggestions in this regard, after which Parliament will pass it and later the government will notify it in the Gazette. After this, the Income Tax Act-2025 will be implemented instead of Income Tax Act-1961 in the country.
The concept of tax year was presented
In the new Income Tax Bill, the government has abolished concepts like ‘financial year’ or ‘evaluation year’ and has kept the simple word ‘tax year’. Now when you fill income tax, you file returns between April and July, but after that a new financial year (April-March) starts in the country and you file tax on income till 31 March of the last financial year till March 31. , Which is the assessment year. In such a situation, now tax year will mean the year for which you are paying tax.
Salary and tax on ‘full and final’
It often happens that you change the job and the company delays finalizing your job. The financial year also changes several times during this period. Then you will be confused about how and when the tax will be calculated on the salary you get ‘full and final’. This is clearly said in the new Income Tax Bill.
Even if the company takes time to make it ‘complete and final’, the tax will still be completed.
According to this, now any part of your salary which you had to meet in one tax year, but you did not get the next tax in the year, it will still be calculated in the same tax in which it was your income. This means that even if the company delays the payment, you have to pay tax. Not only this, but any salary that your employer promised to give you in a given tax year or what was given to you and was not payable or received before it was payable. This will also be part of your taxable income. If you have received any salary arrears and it was not calculated in a last tax year, then you will have to pay tax on it in the year calculation.
