The government has introduced the new Income Tax Bill in Parliament. You can download it. This has put a stop to speculation related to possible changes in the bill. The good news is that there is not much change in the rules in this bill. This means that stability will remain in the current tax system. The special thing is that the new code has maintained the Old Rezim of Income Tax. For many years, issues like Agriculture Income and Inheritance Tax have not been teased.
I believe that the government has not taken the risk by not making a big change in the rules of income tax. New laws are not long. The big reason for this is that rules like exhalation and TDS have been introduced in the table. This will make it easier to understand them. In addition, efforts have been made to make the rules of tax on digital transactions and online income transparent. This has revealed a tax system that is adapted to the developing digital economy. The new law emphasizes the AI-based tax administration. Also, in the case of search and Caesar operation, more rights have been given to Income Tax Department.
A major change in the new income tax bill is that a term ‘tax year’ has been used instead of using traditional words like ‘Assessment Year’ and ‘Previous Year’. This will make it easier for taxpayers to file income tax returns, as the confusion about many financial references will end. Apart from this, the power of Central Board of Direct Taxes (CBDT) has been increased in this bill. It has been given more rights to make rules and implement law. This will make it easier to deal with the challenge that comes with tax coming tax.
The new tax code may be implemented from April 1, 2026 after the pass code is passed by Parliament. Given the widespread form of this law, there is a possibility that there will be no major change in the budget session of 2026. This will make it easier for taxpayers and businesses to use it. Overall, it can be said that the Income Tax Code has not been a big reform in 2025. It has focused on increasing the capacity of simplicity, digital taxation, tax administration. This is a major step towards making the tax system easier.