New Income Tax Account 2025 Live Updates: The Union Finance Minister Nirmala Sitharaman has presented the new income tax proposal in 2025 in Lok Sabha. The IT bill was announced during her budget speech on February 1 and was approved by the cabinet on February 7.

After it has been approved by Lok Sabha, the bill will be sent to Parliament’s Permanent Committee for Further discussions. Before making the rounds of both parliament’s house again.

By extending over 622 pages, the new IT bill in 2025 and aims to replace the 60-year Income Tax Act 1961 and once approved will be called the Income Tax Act, 2025. It is expected to enter into force in April 2026.

What is the new income tax bill?

The new income tax proposal is “sharper and simplified”. It has replaced the term “previous year” from the 60-year income tax law, 1961, with “tax year” and done away with the concept of “assessment year”.

When the new income tax bill has been approved in Parliament, it will be referred to the Parliamentary Permanent Committee for Financing, which will start the consultation process.

What are the tax plates under a new regime?

The tax plates are as follows:

• 0 £4 lakh – tax is 0 percent
• £4-8 Lakh tax is 5 percent
• £8-12 Lakh tax is 10 percent
• £12-16 Lakh tax is 15 percent
• £16-20 Lakh – tax is 20 percent
• £20-24 Lakh tax is 25 percent
• More than £24 Lakh – tax is 30 percent

What is a new update in income tax?

Finance Minister Nirmala Sitharaman gave relief to the middle class by raising the exception limit and rejecting plates in the Union budget. For officials this zero tax limit will be £12.75 Lakh per year, after taking into account a standard deduction for £75,000.

How will the new income tax behalf affect you?

The new income tax bill has been introduced to replace almost 60-year Income Tax Act, 1961. The proposed bill will include simplified language to benefit taxpayers and can reduce the number of sections by 25-30 percent in an attempt to simplify tax rules and its clauses.