Differences between the New Income Tax Bill 2025 and the existing Income Tax Act, 1961

By | February 12, 2025

Differences between the New Income Tax Bill 2025 and the existing Income Tax Act, 1961

 Here is a table summarizing the key differences between the New Income Tax Bill, 2025 and the existing Income Tax Act, 1961 based on the information in that document:

FeatureNew Income Tax Bill, 2025Existing Income Tax Act, 1961
StructureSimplified and consolidatedComplex and lengthy
Tax RatesNew tax regime with fewer slabsOld tax regime with multiple slabs and exemptions
General Anti-Avoidance Rule (GAAR)IntroducedNot present
Tax YearIntroducedAssessment Year used
Tax AdministrationFaceless assessment and dispute resolutionTraditional assessment procedures also includes Faceless Assessment procedure
Residence RulesSimplifiedComplex
Filing of ReturnsSimplified proceduresMore complex procedures
Penalties and OffencesRevisedOld provisions
LitigationAims to reduce litigationProne to litigation
Miscellaneous ProvisionsNew provisions for pass-through entities, shipping companies, etc.Old provisions

Note: This table provides a general overview of the key differences. The specific details may vary depending on the provisions of the new bill.