Income Tax Bill News LIVE: Cabinet nod tomorrow, may be introduced next week

Income Tax Bill News LIVE: Laws are not just for legal professionals, says Fin Secy. 

Income Tax Bill News LIVE: Finance Secretary Tuhin Kanta Pandey, speaking at a PHD Chamber of Commerce and Industry event, said that the law is not only for legal professionals. The upcoming new Income Tax Bill aims to make it easy for taxpayers to understand. 

“Laws are not supposed to be only meant for legal professionals. They are also meant for the citizens to understand,” said Pandey. 

Income Tax Bill News LIVE: New income tax bill will not put any new tax burden!

Income Tax Bill News LIVE: Tuhin Kanta Pandey, the Finance Secretary of the Ministry of Finance in a PHD Chambers event said that the new income tax bill will not put any new taxes or any new burden to the people of the nation, reported the news portal Economic Times. 

Income Tax Bill News LIVE: ‘The way we write laws is undergoing a change…’ said Finance Secretary Tuhin Kanta Pandey. 

Income Tax Bill News LIVE: Finance Secretary Tuhin Kanta Pandey on Thursday, February 6 said that the new income tax bill is poised to announced the change of how the government writes laws. 

“When you see next week a new income tax bill, you will see a very different Bill. The way we write laws is undergoing a change. You will see very less of those long sentences you will not see probably the provison, explanations,” said the Secretary, cited the news portal The Economic Times. 

Income Tax Bill News LIVE: How is a tax rebate different from a tax exemption?

Income Tax Bill News LIVE: An income tax exemption is provided on certain sources of income, not entirely on the total income. This means that, depending on the nature of the income, a part of it may remain non-taxable. 

While calculating tax liability, exempt incomes are the first components that get reduced from your salary or other income. The tax exemption for income up to ₹4 lakh is zero, according to the Budget 2025 announcement.

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.  

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.