Income tax bill 2025 for direct tax law proposals: How to be different

The income tax bill, 2025, is scheduled to replace the income tax law six decades ago, 1961, brings significant improvements to the tax framework in India.

However, contrary to the proposals of the direct tax law (DTC) in 2009 and 2010, which sought a full tax reform, the new bill maintains the current structure while introducing the main updates.

The DTC idea was first introduced in 2009 to replace the income tax law, 1961, with a more simple and united tax framework.

The DTC Bill, 2010, has suggested major changes, including uniform tax panels, a decrease in corporate tax, and a simplified approach to capital profit tax. However, concerns about the loss of revenue, investor resistance to capital gains, and opposition to more stringent measures to combat avoidance led to a frequent delay.

With the change in the government in 2014, the focus turned into gradual reforms rather than complete reform, and the DTC has never been implemented. Instead, successive budgets provided tax changes within the framework of the current law, which led to the income tax bill, 2025.

DTC aims to simplify tax laws by proposing uniform tax panels, 25 % tax rate, and a large -scale tax structure. The income tax bill, 2025, while updating the tax legislation, retains a progressive tax system with revised panels and discounts. Corporate tax is still largely unchanged, although incentives for specific industries are offered.

There is a decisive transformation in management – while DTC suggested the electronic deposit, the new bill showcases the priorities of the unknown evaluation and digital compliance to reduce corruption.

Likewise, the imposition of taxes on foreign entities see improvements instead of introducing the rules of the foreign -subject -subject company (CFC), which was part of DTC.

Capital gain tax remains a major difference. DTC has sought to unify across asset categories, while the new draft law continues to distinguish between different types of investment, while maintaining indexing advantages.

The GAAR (GAAR) is kept, but with improvements for effective implementation. Residence rules also see updates, especially for non -resident Indians (NRIS).

The imposition of taxes on the digital economy is another major update-while DTC lacks specific provisions, the new draft law provides taxes on encrypted assets and digital transactions.

In fact, the new draft law is knownVirtual digital assets (VDA) like any digital representation of value, with the exception of traditional currencies, which can be transferred, stored or circulated electronically. This includes cryptocurrencies, non -explosive symbols (NFTS), and other digital assets determined by the government. VDAS acts as a value, account unit, or an investment tool, depending on encryption techniques or similar to safety and validation. “

The government is scheduled to soon submit the income tax bill, 2025, to replace the income tax law, 1961. The new legislation, which is scheduled to enter into force from April 1, 2026, aims to simplify tax structures, promote compliance, and curb tax evasion.