A major economic change is going to happen in the country soon. Finance Minister Nirmala Sitharaman introduced the new Income Tax Bill 2025 in the Lok Sabha on August 11, which was passed in just 3 minutes. After passing from the Rajya Sabha and getting the President’s approval, this bill will become a new law. This new law will replace the old Income Tax Act of 1961. Many important changes have been made in this new law related to property tax and the common man, which will directly affect you. Let us know about these changes in detail.
Major changes related to property tax
It was not clear when to claim a 30% deduction in the old rules. But now it has been made clear in the new bill that a 30% deduction can be claimed after municipal tax. This change was made on the recommendation of a committee, which believed that the old rules were not clear. Apart from this, some other important changes have also been made:
Pre-construction interest
Now the interest on the loan taken before construction (pre-construction interest) will be applicable on both, whether it is your own house or rented.
Vacant business property
Business properties that are not being used or that are lying vacant for a long time will no longer be taxed.
Importance of Clause 20
Under this new clause, income from home will come under the purview of tax, except when the property is being used for any professional work.
What will be the impact on the common man
First of all, know that there has been no change in the tax slab. Tax slabs under the old and new tax regimes will remain the same as before. The biggest objective of this bill is to make tax rules easy and transparent. Now, the tax year will be used instead of the assessment year or previous year, so that the taxpayer does not face any problem while filing the ITR. Under the new law, if you file ITR even after the deadline, there will be no problem in getting a refund. All such clauses will be removed that hinder this process.
The main objective of the law
The main objective of this new Income Tax Bill 2025 is to make the law simple and clear, so that even common people can easily understand it and follow the tax rules. This step is a big effort towards making the country’s tax system more transparent and equitable.