The new Income Tax Bill will be implemented from this date next year; find out what will change and how it will affect you..

This year, the common man received several tax-related benefits. The central government gave a big gift to the common man by reducing GST. Along with this, the New Income Tax Bill 2025 was passed in August 2025.  Under this bill, several changes will be made to income tax regulations. These will directly affect the common man.

When will the New Income Tax Bill be implemented?
Taxpayers will be able to avail themselves of the benefits of the New Income Tax Bill in the ITR filing next year. It is scheduled to be implemented across the country from April 2026. This will directly impact the common man. If you file ITR every year, you should be aware of the changes under this bill.

What will change?
What will change with the New Income Tax Bill 2025?
The Income Tax Act 1961 was considered outdated, hence the need for a new bill. Therefore, the central government introduced the New Income Tax Bill 2025.
Under this bill, the language will be made simpler and clearer.

The concepts of "Previous Year" and "Assessment Year" will be replaced with the "Tax Year" concept.
Under this rule, the CBDT (Central Board of Direct Taxes) has been given more power to promote digitalization.

It will be organized into 536 sections and 16 schedules to make it easier to understand and read.

The facility of a zero TDS certificate will be available.
Section 80M regarding dividend deduction will be reintroduced.
Even if the ITR is filed after the deadline, there will be no problem in receiving the refund. All clauses that do not support this will be removed.
The New Income Tax Bill has simplified the rules related to property deductions (tax benefits related to property), such as:

A deduction benefit of up to 30% will be available after Municipal Taxes.

The deduction for pre-construction interest (interest paid before the construction of the house) will apply to both self-occupied and rented properties. Business properties that are not being used or have been vacant for a long time will not be taxed.

Clause 20 ensures that income from property will be subject to tax, except when the property is being used for professional purposes.

Changes in Pension Deduction
The portion of the pension that beneficiaries receive as a lump sum is called a Commuted Pension. Deductions are available on this amount. However, this was previously only available to employees. Now, it has been extended to non-employees as well. For example, individuals who receive a pension from LIC will be eligible for a deduction on the lump-sum amount.

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