New Income Tax Law: Small business owners & professionals set to get relief, says sources

The caller Income Tax Bill—or the Income Tax Bill 2025—is apt to supply alleviation to tiny concern owners and professionals, sources told Zee Business. Additionally, businesses with yearly turnovers of up to Rs 5 crore volition not beryllium required to beryllium audited nether taxation laws, the sources said. The caller Income Tax Bill, acceptable to regenerate the Income Tax Act of 1961, is acceptable to beryllium tabled successful Parliament connected Thursday. The caller Bill—which volition go the Income Tax Bill 2025 erstwhile cleared—is aimed astatine simplifying the existing taxation law, doing distant with a agelong concatenation of amendments and consequent complexities implicit the years. 

The New Income Tax Bill—or the caller nonstop taxation code—is portion of the Narendra Modi administration’s ambitious extremity of overhauling and simplifying the country’s existing taxation operation successful bid to easiness taxation compliance for its increasing taxation base. 

Sources besides told Zee Business the following: 

• The Income Tax Bill 2025 volition bash distant with the request of taxation audits for businesses with turnovers of up to Rs 5 crore. 
• It volition besides treble the existing yearly threshold beyond which professionals are required to acquisition mandatory taxation audits to Rs 1 crore. 
• The caller Income Tax Bill volition question to simplify tasks specified arsenic integer taxation filing and faceless processing. 
• It volition wholly power to a integer verification process, successful a drastic displacement from manual checks. 
• It volition alteration income taxation assessees to verify their income taxation returns earlier submission. 
• It volition incorporate provisions for dense penalties for the income taxation assessees filing misleading oregon incorrect income taxation returns. 
• The Income Tax Bill 2025 volition displacement the existing deadline for submitting the taxation audit study to October 31 from the existent September 30. 
• In lawsuit of taxation audit, the past day for filing the income taxation instrumentality volition beryllium revised to November 30 from the existent October 31. 

Among the cardinal apt changes successful the caller instrumentality is the replacement of the word "previous year" with "tax year", thereby doing distant with the conception of the appraisal year. Currently, taxes applicable to the income earned successful the erstwhile twelvemonth are paid successful the adjacent year, known arsenic the appraisal year. 

ALSO READ: New Income Tax Bill acceptable to beryllium tabled successful Parliament connected February 13

The Income Tax Bill 2025 reportedly comprises 536 sections, arsenic against the 298 sections successful the existent Income Tax Act 1961.