Income Tax (No. 2) Bill, 2025 – Download PDF & Key Highlights
The Income Tax (No. 2) Bill, 2025 was passed by the Lok Sabha on 11th August 2025, marking the biggest overhaul of India’s direct tax law in over 60 years. This bill aims to simplify tax compliance, make assessments more transparent, and align with modern business and digital practices.
It will officially become law after Presidential assent, replacing the old Income-tax Act, 1961.
Key Highlights of the Bill
- ₹12 Lakh Basic Exemption under the new tax regime (₹12.75 lakh with standard deduction).
- New Tax Slabs from FY 2025–26 onwards.
- Higher Rebate – Up to ₹60,000 under Section 87A.
- Faceless & Digital Assessments for better transparency.
- Refund Claims Allowed Even After Deadlines without penalty.
- Nil-TDS Certificates available for those with no tax liability.
- Unified “Tax Year” replacing “Previous Year” & “Assessment Year”.
- Reduction of Sections – From 800+ to 536 sections.
- Clearer Deduction Rules for house property, loans, and dividends.
- Regulation of Anonymous Donations to trusts.
Download Income Tax (No. 2) Bill, 2025 PDF
📄 Click here to download the official Bill:
Download PDF
Note: This is the final Bill passed by the Lok Sabha. It will come into effect after being signed by the President and notified in the Gazette.
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