What changes have been made regarding property tax in the New Income Tax Bill 2025? How will it affect you?

An important law is going to be amended in the country very soon. Yesterday, on August 11, Union Finance Minister Nirmala Sitharaman introduced the New Income Tax Bill 2025 in the Lok Sabha. It was passed in the Lok Sabha within about 3 minutes. After passing in the Rajya Sabha and the signature of the President, this bill will come into effect as a new law.

The New Income Tax Bill 2025 is going to replace the old Income Tax Act 1961. Many changes will be made regarding property taxes in this bill. Let's know about it.

What will change regarding Property Tax?

In the earlier rules, it was not clear when to claim a 30 percent deduction. Now it has been clarified in the new bill that after Municipal Taxes, up to 30% deduction can be claimed. This change was suggested by the committee. According to the committee, sections 23 and 24 of the Income Tax Act 1961 should be clearer.

The deduction for pre-construction interest (loan interest which is paid before the construction of the house) will apply to both, whether it is your own house or rented.

Business properties that are not being used or are vacant for a long time will not be taxed.

Clause 20 ensures that the income from the house will come under the tax net, except when the property is being used for professional purposes.

What has changed for the common man?

There has been no change in the tax slab. The tax slab is the same as before for the new tax regime and the old tax regime.

Income tax or tax rules should be made in simple language, so that the common people can understand them.

Now, the tax year will be used instead of Assessment year or Previous Year, so that taxpayers do not face any problem while filing ITR.

Even if ITR is filed after the deadline, there will be no problem in getting a refund. All such clauses that do not support it will be removed.

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