New Income Tax Bill will be introduced in Parliament next week, know what will be special

New Delhi: Union Finance Minister Nirmala Sitharaman has given a big relief to the middle class in the budget of FY 2025-26 presented in Parliament on Saturday. The government announced that no tax will have to be paid on income up to Rs 12 lakh. Along with this, he/she also informed that the new Income Tax Bill will be introduced in Parliament next week. Nirmala Sitharaman emphasized a decade long efforts of the government in implementing tax reforms to increase taxpayers’ convenience.

Income tax Act, 1961 will take place

The Finance Minister has announced that a new Income Tax Bill will be introduced next week, furthering the government’s reform agenda. Actually, the Income Tax Act, 1961 is currently in force in the country. The government is now going to bring a new Income Tax Act in its place, which will be introduced in Parliament during the budget session. The biggest objective of bringing it is to make the current income tax process easier, clear and simple. The draft of the Income Tax Bill was recently sent to the Ministry of Law.

New income tax law a new law

While presenting the budget for FY 2025-26 in the Lok Sabha, the Finance Minister said that the new income tax law will be a new law, not amendment in the current Act. The new income tax law will be easy and short and will be introduced in the Lok Sabha next week. he/she announced the tax -free income of up to Rs 12 lakh with standard deduction in the budget. Major changes have been made in the slab of income tax to benefit taxpayers.

Announcement of new tax rates

The Finance Minister said that I propose to modify the tax rate structures. There will be no tax on income ranging from zero to four lakh rupees, five percent from four lakh rupees to eight lakh rupees, 10 percent from eight lakh rupees to 12 lakh rupees, 15 percent on Rs 12 lakh to Rs 16 lakh, 16 lakh rupees 20 percent on Rs 20 lakh, 25 percent on Rs 20 lakh to Rs 24 lakh and 30 percent income tax will be payable at more than Rs 24 lakh.

Apart from this, there will also be a benefit of standard deduction of Rs 75 thousand. Tax will be calculated separately on special rates like capital gains. The Finance Minister said that due to the standard deduction of Rs 75 thousand, no tax will have to be paid on income of up to Rs 12 lakh.