CBDT launches Self-help Tool to understand Income Tax Bill 2025; Know How to use it?:

CBDT launches Self-help Tool to understand Income Tax Bill 2025; Know How to use it? The Income Tax Department has launched an online self-help tool to help people understand the proposed changes in the Income Tax Bill 2025. The tool, which is available on the official income tax website, allows users to compare the new bill's contents to those in the current Income Tax Act of 1961.

New Income Tax Bill 2025

The Income Tax Bill 2025 attempts to replace the 64-year-old Income Tax Act of 1961. It decreases complexity by decreasing the word count from 5.12 lakh to 2.6 lakh. The chapters have been trimmed from 47 to 23, and the sections were reduced from 819 to 536. To make tax calculations easier, the number of tables has increased from 18 to 57. The bill also eliminates 900 explanations and 1,200 provisions that made tax laws difficult to understand. It introduces the term "tax year" to replace "assessment year" and "previous year." The revised bill's language is shorter and clearer, making it easier for taxpayers to understand tax rules. The self-help tool ensures that users comprehend the changes, decreasing confusion about the new regulations. With this initiative, the Income Tax Department hopes to increase transparency and assist people in navigating the new tax system successfully.

How the Self-help Tool works?

Taxpayers can use a dropdown menu to navigate the tool. When you select a section from the old Income Tax Act, the tool displays the relevant clause from the new Income Tax Bill 2025 on the right side. Users can also examine a structured table format for a more accurate comparison.