Lok Sabha passes new income tax bill

Business Aug 11, 2025

The Lok Sabha just passed the Income Tax (No 2) Bill, which is set to come into force in 2026, set to replace the old 1961 tax law.
Built on Finance Minister Nirmala Sitharaman's S.I.M.P.L.E principles, it promises to make taxes easier to understand by cutting out confusing rules and reducing legal headaches.

What changes will the new law bring?

This new law brings some real changes—like a flat 30% deduction for house property income, easier interest deductions on home loans (even before construction is done), and no more penalties for late TDS filings.
You can even get refunds if you file late.
It's designed to help individuals and small businesses stress less about taxes when it kicks in from April 2026.