New Delhi:
Minister of Finance Nirmala Sitharaman has submitted the new income taxes – which she had mentioned in her budget speech on 1 February, and which is expected to reduce the jargon in the 1961 Income Tax Act, making it easier to understand and implement – in parliament – in parliament Parliament – in parliament. On Thursday.
However, while she got up to present the bill, some members of the opposition organized an extension and others lobed fierce questions about her. The Manish Tewari of the Congress and the NK Premchandran of the RSP suggested that the new tax assessment is in fact more complicated than the old one. Mrs. Sitharaman said the MPs were incorrect; She said that the current law had more than 800 sections, while the proposed law had only 536.
Trinamool MP Saugata Roy then criticized the new account as “mechanical”, to which Mrs Sitharaman shot back “… significant changes are made. The number of words have fallen by half … Sections and chapters have cut.
Those opposition members who remained at the time oppose the bill – even at this stage – but the house has passed the motion through a voice voice to submit the proposed new law.
Mrs Sitharaman then referred the bill to a joint parliamentary committee – which will investigate the new tax proposals and make changes, if necessary – before it is once again passed in the house for passing.
The JPC is expected to submit its report on 10 March, the first day of the second half of the budget session. This committee is founded by Lok Sabha speaker to Birla.
Shortly after setting the bill, Mrs. Sitharaman's office tweeted: “The new income tax account (2025) was submitted in parliament. The aim of the bill is to simplify the language of the existing law as amended to date. (A copy of ) The bill is available on our website … our frequently asked questions handle common questions for objectives and the outcome of the simplification … “
What is a new income tax account?
The new law will take effect from 1 April 2026, however, it will not change existing tax plates.
One of the proposed changes and changes is the concept of a 'tax year', which will replace the simultaneous use of 'financial year', or FY and 'Accounting Year', or AY. In other words, according to the current income tax laws, tax for income will be earned in 2023/24, for example, paid in 2024/25.
The proposed change will see the introduction of a 'tax year', so the tax on income earned in a year will be paid that year. It has also omitted unnecessary sections, such as those about 'Fringe Benefit Tax'.
Read | Reader friendly, useful tables for calculation in new income tax account
Tables are included for provisions with regard to TDS, or tax deducted from the source, 'suspected taxes', salaries and displacements for poor debts.
In general it tries to replace the 1961 law, which critics had become extensive due to changes in the past 60 years. This afternoon Mrs Sitharaman said: “The income tax law was originally adopted in 1961 and came into force in 1962.”
“At that time they had 298 sections. But as time went, more sections were added. And as it looks today, there are 819 … We bring it to five,” she explained. \
Tax proposals in trade union budget 2025
There were three major announcements linked to personal income tax in the budget of Mrs Sitharaman on 1 February. The first, and possibly the largest, was raising the limit of the tax discount.
From FY2025/26, people whose salary up to RS 12 Lakh (RS 12.75 Lakh including standard deduction) will not pay a load. Mrs Sitharaman has also adjusted the tax plates for the new regime, with a 25 percent bracket for salary within the RS 20 Lakh – to RS 24 Lakh category.
Read | Large budget boost for middle class: no income tax to RS 12 Lakh
The tax proposals were welcomed by Prime Minister Narendra Modi and members of the ruling BJP, and many political analysts believe, the Saffanse Partiscript helped a great victory in the election of Delhi Assembly last week; The BJP wiped 48 out of 70 seats from Delhi to prevent the monkey from winning a third consecutive term. The BJP had only won 11 seats together in two earlier elections.
