One significant amendment in the revised Income Tax Bill is the introduction of the term 'tax year', which replaces the traditional concept of the 'assessment year'.
The deadline for filing income tax is a critical factor in tax compliance for all taxpayers. Presently, there are varying deadlines for filing ITR based on the category of income taxpayers.
The primary objectives included minimising disputes and litigations while offering taxpayers a higher level of tax predictability. In order to achieve these goals, 22 specialised sub-committees have been formed to scrutinise different sections of the I-T Act.
Additionally, the finance minister highlighted that there has been a significant decrease in GST rates, decreasing from 15.8% in the previous tax system to 11.3% currently. She emphasized that there have been no instances of tax hikes on any items under GST.
New Income Tax Bill: The main goal of the new bill is to streamline the existing Income Tax laws, making them more transparent and concise to reduce conflicts and offer taxpayers a more predictable tax environment.
Among the key changes announced was the introduction of a provision under which individuals with a taxable income of up to Rs 12 lakh would now be exempt from paying any taxes under the new tax regime, thanks to an increase in the Section 87A rebate to Rs 60,000.
In her Budget 2025 address, FM Nirmala Sitharaman announced modifications to the new tax regime, such as the exemption of up to Rs 4 lakh from basic tax. The old tax regime was kept unchanged.
In Budget 2025, Finance Minister Nirmala Sitharaman implemented changes to the slabs, rates, and rebates under the New Tax Regime to guarantee that income up to Rs 12 lakh is exempt from taxes. Let's explore the implications for taxpayers.
The main objective of the bill is to streamline and modernise India's tax system by simplifying legal language to ensure that taxpayers can easily comprehend the provisions.
Under the new tax system, middle-class individuals and salaried taxpayers earning up to Rs 12 lakh (or Rs 12.75 lakh for those with a basic standard deduction of Rs 75,000) will pay zero income tax. Additionally, the government has introduced new tax slabs to lower middle-class taxes significantly and e
His post sparked widespread discussion, with many agreeing with his stance. Some, however, proposed a more measured approach. One user on X argued that while lower capital gains tax could attract investors, reducing it too much could worsen economic inequality.
In the Budget 2025, Finance Minister Nirmala Sitharaman increased the income tax rebate limit from Rs 7 lakh to Rs 12 lakh in the New Tax Regime. Effectively, individuals earning up to Rs 12 lakh will now have no tax liability.
The proposed legislation, as announced by Finance Minister Nirmala Sitharaman during the Budget 2025, will prioritise simplified language to steer clear of lengthy sentences, provisos, and complicated explanations.
The Income Tax Act of 1961 has been in operation for more than sixty years, comprising 298 sections and 23 chapters. With each Union Budget bringing new amendments and revisions, the existing income tax legislation has evolved into a highly intricate framework.
In this budget, Finance Minister Nirmala Sitharaman revealed that individuals earning up to Rs 12 lakh annually will be exempt from paying income tax if they choose the new tax regime.
The Finance Ministry has clarified that this zero tax liability applies only to the new tax regime, which has been the default since 2023. To benefit from this change, individuals only need to file their Income Tax Return (ITR) .
In accordance with the proposed Finance Bill 2025, the rebate under Section 87A is now applicable up to a total income of Rs 12 lakh. This essentially means that individuals can avail a rebate on their tax liability of up to Rs 60,000. This rebate is based on the new tax slabs and corresponding rates.
Following the Budget 2025, Section 87A of the Income Tax Act now offers marginal relief for taxpayers under the new tax regime. This relief is intended to help taxpayers whose income slightly exceeds the specified threshold.
An updated tax return, filed as per Section 139(8A), permits taxpayers to correct omitted or inaccurate income declarations.
A key highlight this Budget for middle-class and salaried taxpayers is the exemption of income tax for those earning up to Rs 12 lakh (or Rs 12.75 lakh for salaried individuals with a standard deduction of Rs 75,000).
The NDA government has implemented a range of incentives lately to promote the acceptance of the new tax regime. However, the government says it has no plans to phase out the Old Tax Regime offering more deductions and exemptions.
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