New Income Tax Bill From April 1? Big Changes Coming – Are You Ready?

New Delhi: The Centre is planning to implement the new Income Tax Bill, 2025, from April 1 to replace the 1961 Income Tax Law, several media outlets reported citing sources. The new Bill is aimed at making the tax filing procedure simple, enhance compliance, and curb tax evasion. The Bill expands to 16 schedules and 23 chapters, up from 14 schedules in the current law, reorganizing sections for enhanced clarity.

Finance Minister Nirmala Sitharaman is set to table the New Income Tax Bill in Parliament this week, following its clearance by the Union Cabinet on 7 February 2025. Once introduced, the Bill is likely to be referred to the Standing Committee on Finance for detailed review.

According to Finance Secretary Tuhin Kanta Pandey, "The forthcoming Bill will feature concise language without lengthy provisos or explanations, while maintaining tax neutrality."

The Bill reorganizes tax sections to enhance accessibility and clarity, making it easier for taxpayers to understand and comply with tax laws.

To minimize bureaucratic delays and human intervention, the Bill introduces faceless assessment and dispute resolution mechanisms, ensuring a more efficient and transparent tax system.

Mandatory electronic filing, expanded tax audit requirements, and digitized documentation will simplify tax compliance, reducing paperwork and administrative burdens for taxpayers.

The General Anti-Avoidance Rule (GAAR) has been reinforced, and stricter transfer pricing regulations have been implemented to monitor cross-border transactions and curb tax avoidance.

The Bill is expected to remove references to the old tax regime, making the new tax structure the default. However, taxpayers will still have the option to continue with the old regime if they prefer.

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