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:

Feature New Income Tax Bill, 2025 Existing Income Tax Act, 1961
Structure Simplified and consolidated Complex and lengthy
Tax Rates New tax regime with fewer slabs Old tax regime with multiple slabs and exemptions
General Anti-Avoidance Rule (GAAR) Introduced Not present
Tax Year Introduced Assessment Year used
Tax Administration Faceless assessment and dispute resolution Traditional assessment procedures also includes Faceless Assessment procedure
Residence Rules Simplified Complex
Filing of Returns Simplified procedures More complex procedures
Penalties and Offences Revised Old provisions
Litigation Aims to reduce litigation Prone to litigation
Miscellaneous Provisions New 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.