Blog Single

The government’s announcement of the New Income Tax Bill 2025 has brought a major change to India’s tax system. To streamline taxes and offer help to individual taxpayers, this bill introduces changes meant to make filing taxes easier.

Key Changes Introduced in the New Income Tax Bill 2025

1. Revised Income Tax Slabs

For income tax, the most important update is switching the system to the new tax regime, the standard choice for the 2025-26 fiscal year and ahead. Filing taxes will be unnecessary for individuals with incomes of up to ₹12 lakh, saving many from paying any tax at all.

The updated tax rates are as follows:

2. More Standard Deduction

A higher standard deduction, going from ₹50,000 to ₹75,000, is now provided to salaried employees and pensioners.

3. Simplification of Tax Laws

The new legislation brings together scattered sections of the tax code into fewer chapters, allowing taxpayers to understand it more easily.

4. The beginning of ‘tax year’

Rather than using financial and assessment years, the bill uses just one concept, the tax year, to help tax filers.

5. Clubbing of Income Rules Have Been Changed

The bill changes rules for clubbing income, now taking into account the technical or professional knowledge, experience and qualifications of the spouse.

Impact on Individual Taxpayers

Individual taxpayers are expected to gain much from the New Income Tax Bill 2025.

• Lower Tax Liability: Many people will find that their tax burden is less because of the new tax slabs and increased standard deduction.
• Simplified Compliance: With tax laws being organized in a simpler way, it will be clearer for taxpayers what they are required to do and what forms to use.
• Flexibility in Tax Planning: With the changes to clubbing and the introduction of the ‘tax year’ idea, planning taxes is now much more clear and flexible.

Trends & Insights You Should Know

• A total of 81 percent of taxpayers who are paid salaries are supposed to join the new tax regime by 2026.
• The amount of time spent on tax refund processing will decrease widely by as much as 40% with automation.
• You now have until September 15 to file your ITR which gives extra time to adapt to the new system.
• It is expected that these changes will increase compliance and grow the tax base by 15% over the forthcoming 2 years, according to experts.

Licit360’s Income Tax Services – Fast, Reliable, and Hassle-Free

Sorting out your taxes can be too much to handle, but you’re not alone. Licit360 is committed to helping you handle your taxes smoothly, without breaking the bank.

Offerings in our Income Tax portfolio are listed below:

• • Expert ITR Filing – available for salaried workers, self-employed individuals and business people.
  • Adapted Tax Planning for situations under previous and current regulations.
  • You can get help in real time with capital gains, HRA and other tax deductions.

• Advice on selecting the best type of account for saving a lot.

• Support for compliance throughout the company with the latest 2025 norms.

Why Choose Licit360?

• Fast Turnaround: Your orders will be shipped within 24 hours.
• Trusted Professionals: The work is done by certified CAs and tax professionals.
• 24×7 Customer Support: Can reach us any time at all, by calling or texting.
• Transparent Pricing: No hidden charges—what you see is what you pay.

Conclusion

The New Income Tax Bill 2025 goes a long way toward providing an easier and fairer way for people to pay taxes. If they understand these changes, individual taxpayers are better prepared to deal with taxes and make decisions that help with their finances.

To learn more and get personalized tax advice and income tax services in Indore, visit our website Licit360.