New Income Tax Bill 2025 Live: Facing a situation of fragmentation of the world, says FM replying to Budget debate

The finance minister defended the budget saying that 'no state ignored under PM Modi'.

"CPI for Jan 2025 now close to lower end of RBI’s inflation target. Steep correction in potato, onion, tomato prices, decline in pulses inflation supported by tariff support. Supply chain disruptions are being managed by group of ministers," said FM Sitharaman.

The adverse weather conditions affected growth in Q4. Most departments could not spend capex in time due to Lok Sabha elections.

"Facing a situation of fragmentation of the world. Rising debt is a problem with many countries. Economies need to be managed with more prudent fiscal ways. Growing global debt is a reality. Countries have aggressive tariff and non tariff barriers. No one country wants to have free market when it comes to their interest," says FM Sitharaman.

The Finance underlined that Budget 2025-26 was made during severe external challenges.  She added that it is not possible to estimate trends, projections of external challenges as they are dynamic.

Lok Sabha Speaker Om Birla said, “today is the last day of the first phase of the budget session. I am happy that during the session we discussed in a good environment and I got your full support”.

New Income Tax Bill 2025 Live News: The Lok Sabha has been adjourned until March 10, 2025. Following this, Parliament will reconvene for the second phase of the Budget Session, which will continue until April 4, 2025.

New Income Tax Bill 2025 Live News: Those looking to read the income tax bill will have to wait a little longer since the bill will be uploaded on the official website of Lok Sabha in a while. You can access the income tax bill, along with all other bills discussed in the Lok Sabha at sansad.in/ls/legislation/bills.

New Income Tax Bill 2025 Live News: Congress MP Manish Tiwari slammed the newly introduced Income Tax Bill, claiming it is more complex than the existing law. In response, Finance Minister Nirmala Sitharaman defended the bill, emphasising that the changes are substantial rather than cosmetic and that the overall word count has been significantly reduced.

• The Union Finance Minister introduces the Income-Tax Bill, 2025, in Lok Sabha.
• FM: We are bringing down the income tax sections to 536
• FM: Substantial changes are being made in the income tax bill, chapters are being reduced

Amid the din, Union Finance Minister Nirmala Sitharaman tables new Income Tax Bill in Lok Sabha.

New Income Tax Bill 2025 Live News: India has attempted to revamp its 64-year-old Income Tax Act before. A similar simplification effort was proposed in 2009, with plans to implement the revised tax code by 2012. However, it was never carried out due to various reasons. In her 2024 interim budget speech, Finance Minister Nirmala Sitharaman reaffirmed the government's commitment to completely overhauling the complex income tax system.

Attention! The Lok Sabha proceedings have resumed.

• New Income Tax Bill 2025 Live News: Currently, under the Income Tax Act of 1961, an individual's taxable income is categorized into five heads:
• Salaries
• Income from house property
• Profits and gains from business or profession
• Capital gains
• Income from other sources

New Income Tax Bill 2025 Live News: Latest reports suggest that the Income Tax Bill does not propose any further changes to the tax rate structure. Under the old tax regime, the basic income exemption limit remains Rs 2,50,000, while in the existing new tax regime, it is Rs 3,00,000. However, in the newly proposed tax regime, set to take effect from the next financial year as announced in Budget 2025, the exemption limit has been increased to Rs 4,00,000.

• RBI Calls MD & CEOs Of Select NBFCs For A Meeting Today: Sources
• RBI Has Called Select Industry Representatives For Today’s Meeting As Well
• RBI Guv Sanjay Malhotra To Preside Over Meeting, Along With Dy Guv & Other Senior Officials
• Objective Of Meeting Is To Seek Feedback On Various Industry Issues

As the new tax bill awaits introduction, the Rajya Sabha is experiencing heated debates over the JPC report on the Waqf Bill. The Opposition has rejected the report, calling it "fake," while Congress chief Mallikarjun Kharge insists that the dissent note must be included. While the government maintains that all procedures were followed, the Opposition claims the dissent note has been removed. (Read More)

While we wait for the announcement regarding the Income Tax Bill, lets take a look at another critical aspect of the Indian economy - repo rate.  If the new Reserve Bank of India (RBI) Governor Sanjay Malhotra and his colleagues at the Monetary Policy Committee (MPC) were looking for a reason to follow up with another rate cut in April, they’ve just got a good one. That said, price trends in February and March will be keenly watched before a final rate call. (Read More)

New Income Tax Bill 2025 Live News: Sikkim remains the only state in India exempt from income tax. As per sources familiar with the new Income Tax Bill, this exemption will continue. The bill states that any income earned by a Sikkimese individual will not be taxed if it: (a) Comes from a source within Sikkim. (b) Is received as a dividend or interest on securities.

New Income Tax Bill 2025 Live News: In case you are joining us just now, welcome to our live coverage of introduction of Income Tax Bill,2025 in the Lok Sabha. Amid vociferous protests by the Opposition, the proceedings of the Lower House have been adjourned till 2:00 pm. The Income Tax Bill has not been tabled in the Lok Sabha as of now. Hence, it is most likely that the Finance Minister will introduce the Bill when the House reconvenes.  The Opposition is demanding a discussion on the JPC report on Waqf Bill.

• Ruckus is Rajya Sabha
• JPC on Waqf Bill tabled in the Upper House amid din
• Lok Sabha adjourned till noon

New Income Tax Bill 2025 Live News: According to an ET report, the New Income Tax Bill, 2025, reorganizes tax deduction and collection provisions. Currently, TDS (Tax Deducted at Source) is covered under Sections 192 to 196 of the existing Income Tax Act, but in the new bill, it falls under Clause 393. Similarly, TCS (Tax Collected at Source), which is currently governed by Section 206C, is now included under Clause 394 of the new bill.

New Income Tax Bill 2025 Live News: Taxpayers should note that the financial year remains unchanged, running from April 1 to March 31. The new Income Tax Bill will continue to follow this system and will not adopt the calendar year as the tax year.

New Income Tax Bill 2025 Live News: Reports suggest that the new Income Tax Bill may include provisions allowing tax benefits on proceeds from life insurance policies purchased in Gift City, potentially attracting interest from HNIs and the upper middle class. However, no additional deductions have been introduced for health and life insurance premiums. Pankaj Nawani, CEO of CarePal Secure, stated, "NPS contributions from employers continue to receive favorable tax treatment, but with India rapidly becoming a hub for entrepreneurs and self-employed professionals, similar benefits should be extended to them as well."

• In the old tax system, employees can get a standard deduction of ₹50,000 or their salary amount, whichever is less.
• Any tax paid on employment, as per Article 276(2) of the Constitution, is fully deductible.

New Income Tax Bill 2025 Live News: As per the latest reports, India has around 9 crore individual taxpayers. Out of these, 6.3 crore have already opted for the new tax regime. Most of the post-budget analyses show that another 1 crore individual taxpayers may switch to new tax regime during the upcoming financial year.

New Income Tax Bill 2025 Live News: Pension commutation under the Civil Pensions (Commutation) Rules of the Central Government, as well as similar schemes for other government services, civil services, and defense, will be entirely exempt from taxation.

New Income Tax Bill 2025 Live News: The upcoming Income Tax Bill is expected to bring changes to various sections of the tax law. Currently, under the existing Income Tax Act, Section 139 governs income tax return filing, while Section 115BAC covers the new tax regime. With the introduction of the new bill, these section numbers are likely to be revised. This change is anticipated as part of an effort to simplify the language of direct tax laws, leading to modifications in the structure of the Income Tax Act, 2025.

Starting from April 1, 2026, income tax payers will be governed by the rules of the proposed Income Tax Bill, which is set to be tabled in the parliament on February 13, 2025.

The Bill aims to simplify the language and compliance, besides reducing disputes and litigation, according to a Moneycontrol report on February 12. Read more

The new Income-Tax Bill, 2025, likely to be introduced in Parliament on February 13, is expected to provide a clearer definition for online games, tax experts said.

Unlike the Income Tax Act, 1961, which grouped online gaming under lotteries and gambling, the new bill distinctly defines 'online game' and streamlines the tax treatment, to reflect growing prominence of digital gaming in India. Read more

New Income Tax Bill 2025 Live News: With the introduction of a simplified structure that consolidates sub-sections, the total number of sections may increase. “Every section in the existing Income Tax Act will have a corresponding section in the new Bill. For example, the current Act includes section 80, along with sub-sections like 80C, 80D, and 80E. While the last section in the present Act is numbered 298, renumbering could push the total count of sections or clauses beyond 500. However, this change is aimed at making the law more streamlined,” said a chartered accountant who wished to remain anonymous.

New Income Tax Bill 2025 Live News: Once introduced in Parliament, the Bill—reportedly spanning 622 pages—will be sent to the standing committee for review. Chartered accountant Nitesh Buddhadev, Founder of Nimit Consultancy, noted that while the previous Income Tax Act of 1961 extended over 823 pages, the new Bill’s effective length could be around 566 pages when considering clause-related content. He added that the revised legislation aims to eliminate ambiguities and offer greater clarity on various tax-related matters.

• The number of schedules has increased from 14 to 16 to provide detailed rules on tax rates, exemptions, deductions, and procedures for different taxpayer categories.
• This reform aligns with the government’s broader agenda to modernize and simplify India’s direct tax framework.
• The reduction in sections aims to make tax laws more accessible and user-friendly, especially for small businesses and
• individual taxpayers, according to Jalan.
• By simplifying the law and removing unnecessary complexities, the new bill is expected to enhance compliance and minimise errors in tax filings.

New Income Tax Bill 2025 Live News: In tax legislation, sections are individual clauses that specify rules, duties, and rights under the law. They form the backbone of the statute, covering areas such as income calculation, tax benefits, penalties, and compliance requirements. Schedules, in contrast, are appendices to the main act that offer supplementary details, clarifications, or procedural instructions related to the sections. While sections create the fundamental legal structure, schedules complement them by elaborating on topics like tax rates, exemptions, and reporting procedures, ensuring clarity and guidance for taxpayers.

New Income Tax Bill 2025 Live News: The Income-tax Bill, 2025, introduces a major overhaul of India's tax framework by cutting down the number of sections by 42% while expanding the number of schedules from 14 to 16. This reform is designed to streamline the tax system, ease compliance requirements, and enhance clarity for taxpayers.

New Income Tax Bill 2025 Live News: A proposed taxpayer's charter aims to enhance transparency and safeguard taxpayer rights. “These reforms could simplify tax filing, reduce complexity, and promote greater openness. Businesses, particularly those involved in digital assets, may experience significant impacts. This marks a major step in modernizing India’s direct tax system, but its effectiveness remains to be seen,” said Ritika Nayyar, Partner at Singhania & Co.

New Income Tax Bill 2025 Live News: Taxpayers will no longer need to differentiate between the previous year and the assessment year, as the tax year will now directly represent the period in which income is earned and reported. With this shift, financial records will align effortlessly with the tax year, making tax return filing and document preparation more straightforward and less confusing.

New Income Tax Bill 2025 Live News: The Income Tax Act of 1961 follows a two-tier system: the "Previous Year," which refers to the year income is earned, and the "Assessment Year," the subsequent year when that income is assessed and taxed. For instance, income earned from April 1, 2024, to March 31, 2025, falls under Assessment Year 2025–26. Under the new system, this timeframe will simply be called "Tax Year 2024–25," making the terminology clearer and reducing confusion.

New Income Tax Bill 2025 Live News: “The proposed tax bill seeks to simplify and modernise the system. It introduces clearer terminology, such as replacing 'Assessment Year' with 'Tax Year,' which is defined as the 12-month period beginning on April 1…,” said Ritika Nayyar, Partner at Singhania & Co., in a statement to Moneycontrol.

New Income Tax Bill 2025 Live News: Welcome to Moneycontrol.com. Today, Union Finance Minister Nirmala Sitharaman is expected to table the Income Tax Bill, 2025, in the Lok Sabha. Aimed at simplifying tax language for the general public, this bill will replace the Income Tax Act of 1961. While it does not propose any new taxes, it introduces fresh updates related to cryptocurrencies and digital transactions. Stay with us for real-time updates on the Income Tax Bill.