Budget 2025: New income tax Bill to be tabled in Parliament next week, says FM Nirmala Sitharaman

In a large alleviation to the middle-class citizens, Finance Minister Nirmala Sitharaman announced a revised taxation slab nether the caller income taxation regime, mentioning that nary taxation volition beryllium deducted up to an yearly income of Rs 12 lakh successful her fund code 2025 connected Saturday, February 1.

The caller I-T Bill volition transportation guardant the tone of "Nyaya" (justice) based connected the conception of "trust first, scrutinise later", the Finanace Minister mentioned.

The authorities volition array the caller income taxation authorities successful the Parliament adjacent week during the ongoing fund session.

Key structural changes, specified arsenic adjustments to taxation slabs, a rationalisation of deductions, and different incentives to spur economical growth, are anticipated to beryllium introduced nether the projected bill.

"The caller measure volition beryllium wide and nonstop successful substance with adjacent to fractional of the contiguous law, successful presumption of some chapters and words. It volition beryllium elemental to recognize for taxpayers and taxation administration, starring to taxation certainty and reduced litigation," Sitharaman said.

She claimed that the cardinal authorities has implemented respective payer reforms successful past 10 years and the caller income-tax measure volition beryllium introduced adjacent week. Speaking astatine a media briefing aft the fund announcement, Sitharaman said, "I anticipation it (the Bill) volition get passed without overmuch of a difficulty".

She added that the caller income taxation measure volition beryllium referred to the Standing Committee of Parliament. In July past year, Sitharaman had announced a broad reappraisal of the Income-tax Act of 1961, aimed for completion wrong six months.

Subsequently, the CBDT formed an interior committee to oversee the review, with the extremity of making the Act much concise, clear, and user-friendly. This volition assistance trim disputes and litigation portion providing greater taxation certainty for taxpayers.

Additionally, 22 specialised sub-committees were created to analyse assorted aspects of the Income Tax Act.

The reappraisal has been completed, with implicit 6,500 stakeholder suggestions taken into account. The Income Tax Act of 1961, which governs nonstop taxes specified arsenic idiosyncratic income tax, firm tax, securities transaction tax, and acquisition and wealthiness taxes, presently comprises astir 298 sections and 23 chapters.