The New Income Tax Bill 2025, set to replace the Income Tax Act of 1961, has been released and is expected to be tabled in the Lok Sabha soon. Finance Minister Nirmala Sitharaman highlighted that the bill, which has 536 sections and 16 schedules, aims to simplify tax laws and reduce litigation. It introduces lower tax rates across various income levels to provide relief to taxpayers and encourages higher disposable income. The bill also adopts a “Trust First, Scrutinize Later” approach to build taxpayer confidence. It does not introduce new taxes but simplifies existing laws, ensuring stability and predictability. The bill integrates important tax changes announced in the national budget, creating a unified framework for taxpayers. The simplification of tax laws and reduction of exemptions may affect various sectors differently, such as the real estate sector in Kerala. The emphasis on ease of compliance could lead to increased tax collections and better enforcement, potentially impacting government spending on infrastructure and public services in Kerala.
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