There is going to be a major change in income tax rules in India, under which Income Tax Bill 2025 will be implemented. This new bill will replace the Income Tax Act, 1961 and its purpose is to make the rules of income tax simple and transparent. Efforts are being made to reduce the complications of income tax through this bill, which will benefit individuals and businesses. With the implementation of this bill, income tax authorities will also get more powers, so that they will also be able to check in digital spaces.
Under this new bill, income tax officers can now reach emails, social media, and online financial platforms, which will help prevent tax evasion. This change will be applicable from April 1, 2026 and aims to make the tax system more efficient and transparent. In this article, we will discuss the main points of this new income tax bill and its effects.
New Income Tax Bill 2025: An observation
The table below gives details of the main points of Income Tax Bill 2025:
| Speciality | Description |
| Date of implementation | From April 1, 2026 |
| Instead of Income Tax Act | Income tax act will replace 1961 |
| Main objective | Integrate and transparent |
| New tax year | The concept of tax year has been introduced |
| Positive taxation | Simplified for small businesses and professionals |
| Access in digital spaces | Income tax officials allow access to emails and social media |
| Tax slab | No change in tax slab under new tax regime |
New powers of Income Tax Officers
Under this new bill, Income Tax Officers will now be able to check in digital spaces. If a person is suspected of tax evasion, officers can reach emails, social media, and online financial platforms. This change will help in making the tax system more efficient, but it also raises the issue of privacy.
Change in Present Taxation
The payment of taxes for small businesses and professionals has become simpler under the Presumptive Taxation Scheme. Under this scheme, businesses have to declare only one certain percentage of their benefits, which makes it easier for them to pay taxes. The scheme is for businesses whose total turnover does not exceed 20 million rupees and which do not exceed 5% in cash transactions.
Tax slabs and rates
There has been no change in the tax slab under the New Tax Regime. These slabs are the following:
- 0 to 4 lakh rupees: no tax
- 4 lakh to 8 lakh rupees: 5%
- 8 lakh to 12 lakh rupees: 10%
- 12 lakh to 16 lakh rupees: 15%
- 16 lakh to 20 lakh rupees: 20%
- 20 lakh to 24 lakh rupees: 25%
- More than Rs 24 lakh: 30%
These slabs are according to Union Budget 2025 and they aim to provide relief to taxpayers.
Rights and responsibilities of taxpayers
The new Income Tax bill includes the concept of Taxpayer’s Charter, which explains the rights and obligations of taxpayers. The purpose of this charter is to make taxpayers aware of their rights and make them feel more comfortable in the tax system.
Rights of taxpayers
- Clear and transparent tax rules: Taxpayers have the right to pay their taxes according to the clear and transparent taxes.
- Taxpayer Charter: A Charter to clarify the rights and obligations of taxpayers.
- Digital services: Taxpayers have the right to avail tax services online.
Responsibility of taxpayers
- Timely payment of taxes: It is the responsibility of taxpayers to pay their taxes on time.
- Providing correct information: Taxpayers have to provide their income and other financial information correctly.
- Following tax rules: Taxpayers have to follow tax rules and avoid any kind of tax evasion.
conclusion
There is going to be a significant change in India’s tax system through the new income tax bill. This bill not only simplifies tax rules, but also makes it more transparent and comfortable for taxpayers. However, the issues of privacy are also arising due to the reach of income tax authorities in Digital Spaces. The implementation of this bill will bring more efficiency and transparency in the tax system, which will also be beneficial for the economic growth of the country.
Disclaimer:
This article is for general information and should not be taken as any special financial advice. It would be appropriate to consult an expert for detailed information about the Income Tax Bill 2025. It is also important to get information from government official sources to understand the impact and rules of this bill.
