{"id":37368,"date":"2025-02-14T18:44:58","date_gmt":"2025-02-14T13:14:58","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=37368"},"modified":"2025-08-20T13:09:35","modified_gmt":"2025-08-20T07:39:35","slug":"income-tax-bill-2025","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/14-02-2025\/income-tax-bill-2025","title":{"rendered":"The Income-tax Bill, 2025"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The government has proposed a new bill to repeal and replace the <strong>60-year-old Income-tax Act, 1961<\/strong>, with a simpler and more efficient tax framework.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Income Tax Bill 2025 aims to simplify Income Tax Act 1961.\u00a0 The new bill reduces chapters and words for enhanced clarity.<\/li>\n\n\n\n<li>It aims to reduce litigation and enhance compliance. Once passed, the proposed legislation will be called the Income Tax Act, 2025, and is expected to take effect in April 2026.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"e7ddde\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"402\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/02\/inside-bill-introduced-in-parliament.png\" alt=\"The Income-tax Bill, 2025\" class=\"not-transparent wp-image-37370\" style=\"--dominant-color: #e7ddde; width:466px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/02\/inside-bill-introduced-in-parliament.png 600w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/02\/inside-bill-introduced-in-parliament-300x201.png 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Features<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Qualitative Improvements<\/strong>\n<ul class=\"wp-block-list\">\n<li>Simplified language, making the law more accessible.<\/li>\n\n\n\n<li>Consolidation of amendments, reducing fragmentation.<\/li>\n\n\n\n<li>Removal of obsolete and redundant provisions for greater clarity.<\/li>\n\n\n\n<li>Structural rationalization through tables and formulae for improved readability.<\/li>\n\n\n\n<li>Preservation of existing taxation principles, ensuring continuity while enhancing usability.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Crypto as Property:<\/strong> Virtual digital assets such as cryptocurrencies have been included in the definition of property to be counted as a capital asset.<\/li>\n\n\n\n<li><strong>Dispute Resolution: <\/strong>It provides the points of determination, decision, and the reasons behind it, marking a shift from the earlier section, which lacked clarity on the manner of issuing DRP directions.<\/li>\n\n\n\n<li><strong>Capital Gain Exemptions:<\/strong> Section 54E of the Act, which details exemptions for capital gains on transfer of capital assets prior to April 1992 has been removed.<\/li>\n\n\n\n<li><strong>Tax Year: <\/strong>The Bill introduces the concept of \u201ctax year\u201d, which has been defined as the 12-month period beginning April 1.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Once the Bill is passed in the Parliament, it will be sent to a Parliamentary Standing Committee on Finance for reviewing.<\/li>\n\n\n\n<li>After a call is taken on including any proposed amendments, the government will decide the date for rolling out the new income tax law.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/pib.gov.in\/PressReleasePage.aspx?PRID=2102744\" rel=\"nofollow noopener\" target=\"_blank\"><strong>PIB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The government has proposed a new bill to repeal and replace the 60-year-old Income-tax Act, 1961, with a simpler and more efficient tax framework.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-37368","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/37368","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=37368"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/37368\/revisions"}],"predecessor-version":[{"id":37371,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/37368\/revisions\/37371"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=37368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=37368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=37368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}