New Income Tax Bill: This year, the common man received many tax benefits. The central government has given the common man a significant gift by reducing GST. Additionally, the New Income Tax Bill (2025) was passed in August 2025. This bill will introduce several changes related to income tax, which will directly impact the common man.
When will the New Income Tax Bill be implemented?
Taxpayers will be able to take advantage of the new Income Tax Bill when filing their ITR next year. It will be implemented nationwide from April 2026. This will directly impact the common man. If you file your ITR every year, you should be aware of the changes under this bill.
What will change with the New Income Tax Bill 2025?
Due to the outdated Income Tax Act of 1961, several needs were felt. Therefore, the Central Government introduced the New Income Tax Bill 2025.Under this bill, the language will be made simpler and clearer. At the same time, options like Previous Year and Assessment Year will be eliminated and the Tax Year concept will be introduced. Under this rule, CBDT has been given more power so that digitization can be promoted more.
It will be organised into 536 sections and 16 schedules, making it both easy to understand and read. Facility of zero TDS certificate will be available. Section 80M will be reintroduced to deal with dividend deductions. Even if you file your ITR after the deadline, you won’t face any problems getting your refund. Any clauses that don’t support this will be removed.
The new Income Tax Bill has simplified the rules related to property deduction (property-related tax benefits) such as After Municipal Taxes, deduction benefit up to 30% will be available.
The deduction for pre-construction interest (interest paid before the house is built) will apply to both, whether the house is owned or rented. Business properties that are not being used or have been vacant for a long time will not be taxed. Clause 20 ensures that income from the house will be taxable, except if the property is used for professional purposes.
Changes in pension deductions
The portion of pension that beneficiaries receive as a lump sum is called commuted pension. This amount is also eligible for deduction. However, this was previously limited to employees. Now, it has been extended to non-employees as well. For example, individuals who receive pension benefits from LIC will also receive the deduction on their lump sum payment.