Lok Sabha clears new Income Tax Bill: Key takeaways
The Lok Sabha just cleared the Income Tax Bill, 2025, which is set to replace the old 1961 law.
If the President signs off, it'll kick in from April 1, 2026—so there's a bit of time before anything changes.
S.I.M.P.L.E reforms to make tax rules less confusing
This bill brings in S.I.M.P.L.E reforms to make tax rules way less confusing (finally!).
Over 4,000 old amendments are getting clarified. Some highlights: you can get tax refunds even if you file late, no more penalties for late TDS statements, and both residents and non-residents can now get Nil TDS Certificates if they owe nothing.
There's also a clearer rule on pension deductions and a standard 30% deduction on house property income.
Oh—and instead of "previous year" or "assessment year," it'll just be called the "tax year."
The actual tax rates aren't changing for now.