Key Points about the New Income Tax Bill, 2025
1. New Income Tax Bill Structure & Implementation
The New Income Tax Bill has 536 clauses, 16 schedules, and 23 chapters.
It will be applicable with effect from April 1, 2026.
2. Concept of Previous Year & Assessment Year
The terms “previous year” and “assessment year” in the present Income Tax Act are replaced by the term “tax year”, as defined in Clause 3 of the New Income Tax Bill.
The tax year shall be 12 months, commencing on April 1 of the financial year.
3. Definition of Accountant
Under Clause 515(3)(b) of the New Income Tax Bill, the definition of “Accountant” remains the same as earlier, but now only Chartered Accountants are considered.
4. Old Tax Regime & Deductions
The Old Tax Regime continues under the new Income Tax Bill.
Deductions currently available under Chapter VI-A of the present Income Tax Act are still available in the new bill under Chapter VIII, covered under Clauses 122 to 154.
5. New Tax Regime Provisions
The new tax regime rates & provisions are covered under Clause 202 of the New Income Tax Bill.
6. TDS & TCS Provisions
TDS (Tax Deducted at Source) sections of the present Income Tax Act (Sections 192 to 196) are now covered under Clause 393 of the New Income Tax Bill.
TCS (Tax Collected at Source) under Section 206C of the existing Income Tax Act is now covered under Clause 394 of the New Income Tax Bill.
7. Tax Audit Provisions
Tax Audit under Section 44AB of the current Income Tax Act is now covered under Clause 63 of the New Income Tax Bill.
Furthermore, Clause 63 reiterates that tax audit shall be conducted only by Chartered Accountants.
8. Rebate Provisions
The rebate currently governed by Section 87A of the Income Tax Act is now covered under Clause 156 of the New Income Tax Bill.
9. Income Tax Return (ITR) Filing Due Dates
Individuals – 31st July
Companies – 31st October
Tax Audit Cases – 31st October
Transfer Pricing Cases – 30th November
Revised Return – 31st December (9 months from the end of the relevant tax year or before the completion of the assessment, whichever is earlier).
10. Delegation of Powers to CBDT
A major shift from the existing law is the delegation of certain powers to the Central Board of Direct Taxes (CBDT).
Under the current system, the Income Tax Department must seek parliamentary approval for procedural matters, tax schemes, and compliance frameworks.
The new bill empowers the CBDT to introduce tax schemes independently, reducing bureaucratic delays and making tax governance more efficient.
11. CBDT’s Enhanced Administrative Authority
As per Clause 533 of the new bill, the CBDT will have the authority to:
Establish tax administration rules
Implement compliance measures
Enforce digital tax monitoring systems
This will be done without requiring frequent legislative amendments.
