Income Tax Bill 2025 Live Updates: Lok Sabha adjourned till 10th March, 11 am. This marks the end of the first phase of the Budget session. Finance Minister Nirmala Sitharaman has tabled the new income tax bill in the Lok Sabha, today.

Income Tax Bill 2025 Live Updates: Finance Minister Nirmala Sitharaman has tabled the new income tax bill in the parliament. She says that substantial changes have been made to the Income Tax Bill.

The new Income Tax Bill is expected to benefit the salaried class by reducing their compliance burden, but they should carefully weigh the potential loss of deductions before opting for it. The Bill, to be presented by the Finance Minister in the Lok Sabha today, aims to simplify tax laws with clearer language, but does not introduce significant new tax changes at this time.

Income Tax Bill LIVE: No significant tax-related changes are expected from this Bill. Here's an overview of the tax slabs that will be effective from the next financial year.

Up to Rs. 4,00,000: No tax

Rs. 4,00,001 – Rs. 8,00,000: 5% tax

Rs. 8,00,001 – Rs. 12,00,000: 10% tax

Rs. 12,00,001 – Rs. 16,00,000: 15% tax

Rs. 16,00,001 – Rs. 20,00,000: 20% tax

Rs. 20,00,001 – Rs. 24,00,000: 25% tax

Over Rs. 24,00,000: 30% tax

Income Tax Bill 2025: As per Section 402, Clause 39, the definition of rent is not limited to rent received by an individual on letting out his/her land or property. Per the bill, rent” means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any—

(a) land; or(b) building (including factory building); or(c) land appurtenant to a building (including factory building); or(d) machinery; or(e) plant; or(f) equipment; or(g) furniture; or(h) fittings,whether or not any or all of the above are owned by the payee, and for the purposes of section 393(1) [Table: Sl. No. 2(i)], only the payment with reference to assetsmentioned in sub-clauses (a), (b) and (c) shall be treated as rent.

The new Income Tax Bill 2025 aims to simplify the tax laws, making them easier to understand and reducing disputes and litigations. Set to take effect on April 1, 2026, this bill will replace the outdated Income Tax Act of 1961. Some key features of the new bill include:

- Virtual Digital Assets: These will now be considered capital assets, subject to taxation.

- Tax Deduction at Source (TDS): New provisions will be introduced to streamline TDS.

- Presumptive Taxation Rates: These rates will be revised to simplify tax compliance.

- Simplified Language: The bill aims to use clearer language, reducing ambiguity and confusion.

- Reduced Litigation: By clarifying tax laws, the bill seeks to minimize disputes and litigation.

Feroze Azeez, Deputy CEO of Anand Rathi Wealth Limited, welcomed the new Income Tax Bill, set to be introduced by Finance Minister Nirmala Sitharaman in the Lok Sabha. Azeez praised the bill for its simplified language and organized structure, making it easier for individuals to comprehend the law. Azeez expressed optimism that the new bill marks a significant step towards simplification, a goal that has been long-awaited.

The new provision in the upcoming Income Tax Bill will classify cryptocurrencies and other unreported digital assets as “undisclosed income” during searches by tax authorities. According to a moneycontrol report, If these assets are found in tax raids, they could be treated as undeclared income, potentially leading to penalties. This move aims to increase scrutiny of hidden assets and transactions, ensuring transparency and accountability in financial dealings.

Read More: Crypto In India Will Be ‘Undisclosed Income’: What You Need To Know About The New Tax Bill

While the government has been claiming that the new Income Tax Bill is a more simplified version of the old Tax Act, Congress MP Manish Tewari has said that it is in fact “more complicated.”