The New Income Tax brings These changes- Know whose affected

The New Income Tax Bill aims to simplify the complex Income tax act of 1961. Read more to find out what new rules have taken its effect, all the details you need to know as a taxpayer. 

New Income Tax Bill - What was revised? 

• The New bill has been presented with an aim to de-complexify financial procedures and make things easier to comprehend as a taxpayer. S.I.M.P.L.E is an acronym for goals that the officials intend to achieve. Streamlined structure & Language, Integrated & concise, Minimized litigation, Practical & Transparent, Learn & Adapt, Efficient Tax Reforms. 
• Under the chairmanship of MP Baijayant Panda the select committee made 285 suggestions that could fulfill these goals. Almost all the recommendations have been passed under the new tax bill presented by FM Nirmala Sitharaman. 
• Sections are reduced to 536 and chapters to 23 to simplify the terms and cut down ambiguities. The term “TAX YEAR” is introduced to replace the previous year/assessment year. 
• Several compliance procedures are made faceless and digital to improve transparency to reduce the tiring tasks of queuing in lines or provide hard copies of documents. 
• The TDS/refund filings are to be considered only after the deadline and provide NIL-TDS certificates for taxpayers who are not liable. 
• The focus is now being exerted over the Donations to purely religious trusts that are exempted from tax but other ones to be observed closely. 

Last year there were only 3% tax payers choose new regime.
Is anything changed from last year to this year?
Yes, New regime is made default.
So all ITR filers whose income is below 7L moved to New regime.
Out of 8 cr, only 20% pay income tax.
Citizens must teach hard lessons. pic.twitter.com/7tmcCcfhXV

— The Exploited TaxPayer (@IndiaNewGen) August 8, 2024

Implications of New Income tax bill 

• Relief for Small Businesses as higher presumptive taxation limits reduce the audit procedures for small MSMEs
• Tax Limit- Now individuals can earn up to 12.75 lakh without paying taxes increasing savings. 
• Faster solutions to troubles - Measures have been taken to resolve taxing queries and issues faster without much document verification and harassment.      
• Boost Transparency- The digital first approach is to help the individuals and companies to look through things themselves as the government simplest the procedures and terms which earlier posed as a barrier. 
• Faster Returns on TDS as you buy property- Attempt has been made for people buying property to apply for tds digitally to speed the process.

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