New Tax Bill Update: Modi Cabinet Meeting Tomorrow, Approval Likely!

New Tax Bill Update: The Modi government is set to discuss the New Tax Bill in a crucial cabinet meeting on Friday, February 9, 2025. According to sources, the bill is expected to receive cabinet approval and may be presented in the Lok Sabha on Monday.

What Finance Minister Announced in Budget 2025

During the Budget 2025 announcement last week, Finance Minister Nirmala Sitharaman confirmed that the New Income Tax Bill would be introduced soon. Now, reports indicate that the bill is likely to be tabled in Parliament next week.

What’s in the New Income Tax Bill?

No new taxes will be introduced.
The bill aims to make the tax structure simpler and more rational.
It may include reforms in the existing tax laws.
Punishments for certain tax offenses could be reduced.
The bill seeks to improve transparency and simplify the Income Tax Act, 1961.
Comparison of New and Old Tax Regimes

New Tax Regime (2025)

Income up to ₹4 lakh – 0% tax
₹4 lakh to ₹8 lakh – 5% tax
₹8 lakh to ₹12 lakh – 10% tax
₹12 lakh to ₹16 lakh – 15% tax
₹16 lakh to ₹20 lakh – 20% tax
₹20 lakh to ₹24 lakh – 25% tax
Above ₹24 lakh – 30% tax

Old Tax Regime

Up to ₹2.5 lakh – 0% tax
₹2.5 lakh to ₹5 lakh – 5% tax
₹5 lakh to ₹10 lakh – 20% tax
Above ₹10 lakh – 30% tax

Under the New Tax Regime, individuals earning up to ₹12 lakh do not need to pay income tax, while under the Old Tax Regime, income beyond ₹10 lakh is taxed at 30%.

Why is the New Tax Bill Important?

Simplify the tax filing process.
Reduce the tax burden on individuals.
Ensure transparency and ease of compliance.

What’s Next?

If approved in the cabinet meeting on Friday, the New Tax Bill will be tabled in Lok Sabha on Monday, where further discussions and potential modifications may take place