Income Tax Budget 2025: Modi government will present a new income tax bill next week (New Income Tax Bill in Parliament. Finance Minister Nirmala Sitharaman announced this by presenting the budget 2025-26 on Saturday 1 February. He said that the government said that the government next week a new income tax bill next week She will also say that the tax department will work on the government’s commitment to simplify the ‘first trust and later investigation’.
It is believed that many major reforms may be announced in the new income tax bill. The Finance Minister said that the new Income Tax Bill will be easy to understand and this will help reduce litigation.
Sitharaman, while presenting a budget of 2025-26 in the Lok Sabha, promised to bring a simple and mild new law in place of the six-decade-old law related to the Regaluation of Income Tax provisions. He said that the new income tax law will have a sense of ‘justice’ and it will work on the principle of ‘Believe, check later’.
He proposed to extend the time limit to four years for persons filing updated Income Tax Return (ITR). The updated ITR files taxpayers who could not inform their correct income at the scheduled time.
At present, such returns can be admitted within two years of the tax assessment year. Around 90 lakh taxpayers have voluntarily updated their income details by paying additional tax.
Also read- Income Tax Slabs: Now income tax will not be levied on income of up to ₹ 12 lakh, see new slab rates here