New Income Tax Bill, 2025 likely to be tabled in Parliament tomorrow, ‘tax year’ to replace ‘assessment year’

New Income tax Bill

The new Income Tax Bill is likely to be tabled in Parliament tomorrow, latest media reports say. According to CNBC-Tv18, the new I-T Bill will have 16 schedules and 23 chapters. The report further said that the draft Bill proposes to replace the term 'assessment year' with simpler 'tax year.'

Similarly, the Bill proposes the use of ‘previous year’ for ‘financial year.’ As per the latest reports, under the new the I-T Bill, a ‘tax year’ will translate into 12-month period of the Financial Year beginning April 1st.

The CNBC-TV18 report further added that there will be a much broader definition on cryptos as well as other digital transactions. In context of dividends, the Bill will have mention of ‘finance units’ and ‘finance cos’.

As part of new compliance, the new I-T Bill also proposes introduction of a detailed 'Taxpayer’s Charter'. There will be a section that suggests 'foreign companies to be deemed as residents,' the CNBC-TV18 report added.

Meanwhile, a CNBC-Awaaz report says that the new I-T Bill will have no tweaks in the existing short-term capital gains (STCG) and long-term capital gains (LTCG). Previously in Union Budget tabled in July last year, Finance Minister Nirmala Sitharaman had declared STCG from equity, funds stocks and units of business trust (InvIT and REIT) will be taxed at 20 percent.

An NDTV report said that the income tax department had received nearly 7,000 suggestions for the review of the six-decade-old law. The new Income Tax Bill, 2025 aims to simplify the tax laws' language. The officials have clarified that there will be no change in the existing tax brackets.