New Delhi: Ahead of the presentation of the new Income Tax Bill 2025, there were rumors that the government might remove the Rs 12 lakh tax exemption currently available to many taxpayers.
Finance Minister Nirmala Sitharaman is set to present the bill in the Lok Sabha today. As these rumors spread across social media and news platforms, concerns grew among middle-class taxpayers.
Government Clarifies: No Change in Tax Exemption
Union Minister for Parliamentary Affairs and Minority Affairs, Kiren Rijiju, cleared the air regarding the new tax bill. He rejected the claims that the Rs 12 lakh exemption is being removed.
He said that the bill is not a complete replacement of the previous version but a revised and updated version. It includes 285 recommendations from the Select Committee of Parliament, which have been approved by the government.
Rijiju emphasized that the aim is to keep tax benefits intact for incomes up to Rs 12 lakh, as announced in the previous Union Budget.
Taxpayers Can Expect Continued Relief
The government has reassured taxpayers that the relief on income up to Rs 12 lakh will continue. Rijiju said the new bill will help make the tax system more clear, simple, and taxpayer-friendly.
He also explained that the updates are designed to make it easier for Parliament to pass the bill, without scrapping the entire earlier draft.
What is the New Income Tax Bill 2025?
The Income Tax Bill 2025 aims to replace the old 1961 Income Tax Act with a modern and streamlined law. The new bill includes:
- 536 sections (reduced from 819 in the old law)
- Only 23 chapters (earlier there were more)
- A focus on simplicity, transparency, and better use of technology
The goal is to create a more efficient and understandable tax structure for all taxpayers in India.
This major tax reform bill is part of the government’s long-term plan to modernize financial systems and make compliance easier for individuals and businesses alike.
