Income Tax Bill News LIVE: The Union Cabinet is expected to approve the new Income Tax Bill on Friday, February 7, potentially leading to its introduction in the Lok Sabha early next week. This bill is part of a larger effort to reform the tax system and aims to overhaul the existing tax structure to make it more streamlined and transparent.
The Union Budget 2025 announced that the Ministry of Finance will table the new Income Tax Bill in front of the Union Cabinet this week. Union Finance Minister Nirmala Sitharaman, in her annual press conference after the Budget, said that she hopes that the bill passes without any difficulties.
The Indian government aims to bring simplicity to the taxpayers with the new income tax bill and also announced that it will be 50% less in text and clearer compared to the previous one.
Income Tax Bill News LIVE: How will the tax rebate work?
Income Tax Bill News LIVE: According to the proposed revised new tax regime, people earning up to ₹12 lakh will pay no tax. Here is the breakdown:
1. For income up to ₹4 lakh, 0 tax is liable.
2. For income between ₹4 and ₹8 lakh, a 5% tax or up to ₹20,000 is charged.
3. For income between ₹8 lakh and ₹12 lakh, 10% tax or up to ₹40,000 is levied.
4. The total rebate under 87A is ₹60,000 according to Budget 2025. Therefore, the rebate cancels out the total estimated tax of ₹60,000 ( ₹40,000 + ₹20,000).
Income Tax Bill News LIVE: What is a tax rebate?
Income Tax Bill News LIVE: Tax rebate is a tax relief provided to individuals who earn up to a certain threshold. Taxpayers can claim this amount from total tax payable. Tax rebate reduces the total tax payable by deducting a fixed amount from the calculated tax liability.
The proposal for the revised new tax regime aims to cancel out the tax payable for taxpayers earning up to ₹12 lakh instead of a total tax exemption.
The maximum rebate available is ₹60,000, which is for a taxpayer with an income of ₹12 lakh, on which tax is payable as per the new slabs, Mint reported earlier.
Income Tax Bill News LIVE: Zero Tax upto Income of ₹12 lakh?
Income Tax Bill News LIVE: In the Budget 2025 announcement, Finance Minister Nirmala Sitharaman said that people earning income up to ₹12 lakh under the new tax regime.
For salaried individuals, income up to ₹12.75 lakh will come under no income tax due to a standard deduction benefit of ₹75,000.
Income Tax Bill News LIVE: What are the proposed income tax rates under the new tax regime?
Income Tax Bill News LIVE: The proposed income tax rates under the new tax regime are as follows –
1) ₹0-4 lakh = Nil tax
2) ₹4-8 lakh = 5% rate
3) ₹8-12 lakh = 10% rate
4) ₹12-16 lakh = 15% rate
5) ₹16-20 lakh = 20% rate
6) ₹20-24 lakh = 25% rate
7) Above ₹24 lakh = 30% rate
However, the also announced that people with an income of up to ₹12 lakh will have to pay “Zero tax,” according to the Budget 2025 announcement.
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Income Tax Bill News LIVE: When will the new income tax bill come into effect?
Income Tax Bill News LIVE: The new income tax bill is set to come into effect from the financial year 2025-26, and effective from the assessment Year 2026-27, according to the budget announcement of February 1, 2025.
Income Tax Bill News LIVE: 95-97% of taxpayers will be included in the new tax regime?
Income Tax Bill News LIVE: Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal, in an interview with the news portal Business Today, said that after the implementation of the new tax regime proposed in the Budget 2025, around 95-97 per cent of the taxpayers would join the new tax regime.
“A straight computation of income tax is available in the new tax regime with reduced rates. About 74 per cent of the people have already adopted the new tax regime. I am sure that with this change that has been brought out in this amendment in the finance bill, more people would be prompted to join the NTR. We have about 8-8.5 crore individual taxpayers and out of that 75 per cent have already opted. So going forward I see the figure touching somewhere around 95-97%,” said Agarwal, cited the news portal.
Income Tax Bill News LIVE: Gross Corporate tax collection rose nearly 17% YoY to ₹9.71 lakh crore in 2025.
Income Tax Bill News LIVE: The gross corporate tax collection rose almost 17% year-on-year (YoY) to ₹9.71 lakh crore as of January 12, 2025, compared to ₹8.33 lakh crore as of the same period a year ago.
Income Tax Bill News LIVE: Gross non-corporate direct tax collection rose nearly 28% YoY to ₹10.45 lakh crore in 2025.
Income Tax Bill News LIVE: The gross direct tax collections under the non-corporate segment rose nearly 28% year-on-year (YoY) to ₹10.45 lakh crore as of January 1, 2025, compared to ₹8.58 lakh crore in the previous year, according to official Income Tax data
Non-Corporate Tax (NCT) includes taxes paid by individuals, HUFs, Firms, AoPs, BoIs, Local Authorities, Artificial Juridical Person.
Income Tax Bill News LIVE: How long has the Income Tax Act been in action?
Income Tax Bill News LIVE: The Income Tax Act of 1961 has been in existence for over the last 60 years and has 298 sections and 23 chapters. In the last six decades, the multiple additions and revisions have made the act complicated for the taxpayers.
Hence, the Modi 3.0 has finally decided to change the Income Tax Act with the new Income-tax bill, according to the Budget 2025 announcement.
Income Tax Bill News LIVE: Will the new bill replace Income Tax Act of 1961?
Income Tax Bill News LIVE: The new income tax bill will seek to replace the outdated Income Tax Act of 1961 and simplify terms and clauses, according to Union Finance Minister Nirmala Sitharaman.
“New Income Tax bill will be clear and direct”, said Sitharaman on February 1.
Income Tax Bill News LIVE: New income tax bill to be ‘simple to understand’
Income Tax Bill News LIVE: The Government of India expects the upcoming income tax bill which is set to be approved by the Union Cabinet on Friday, February 7 is expected to be simple to understand for taxpayers.
“It will be simple to understand for taxpayers and tax administration, leading to tax certainty and reduced litigation,” as per the Budget 2025 announcement.
Income Tax Bill News LIVE: Govt aims new bill to be ‘clearer’ and ‘lesser text’
Income Tax Bill News LIVE: The Indian government aims that the new income tax bill will be clearer and expected to have 50% less text, as per FM Nirmala Sitharaman’s Budget 2025 announcement.
“The New Income Tax Bill will be clearer and will have around 50% lesser text compared to the present law, in terms of both chapters and words,” according to the Union Budget announcement.
Income Tax Bill News LIVE: Union Cabinet is likely to approve the new bill
Income Tax Bill News LIVE: According to media reports, Union Cabinet is likely to approve the new Income Tax Bill on Friday and the bill is likely to be introduced next week.
