Infinite paperwork and confusing lingo could soon be obsolete. The New Income Tax Bill 2025 may be the game-changer small and salaried taxpayers have been waiting for.
Simplifying Tax Filing Process
Many people have traditionally considered filing income tax returns to be a yearly hassle. Numerous salaried persons and small taxpayers were overwhelmed by the copious amounts of paperwork, dispersed parts, and dense verbiage. However, by making tax filing easier, more transparent, and less time-consuming, the New Income Tax Bill, 2025, aims to alter that.
IndiaToday.in interviewed Sudhir Kaushik, co-founder and CEO of Taxspanner, and CA (Dr) Suresh Surana to find out how the new legislation would make compliance easier for regular taxpayers.
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SALARIED INDIVIDUALS’ EASIER RETURN FILING
The restructuring of laws pertaining to salaries is one of the most significant revisions. In the past, taxpayers had to go through many sections in order to find retirement benefits, deductions, or allowances. A single chapter now contains all of this information in plain language with easily comprehensible tables.
The goal of the Income Tax Act‘s simplicity is to improve compliance and clarity so that taxpayers can comprehend and submit their forms on their own, according to Dr. Surana.
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The word count for “Salaries,” which was 4,401 words long, has been drastically trimmed to 3,420 words. Additionally, he said, “the wording has been streamlined, with minimum legal and technical jargon, and crucial concepts like perquisite, profit in lieu of wage, and standard deduction have been clarified.”
SMALL TAXPAYERS NEED TO DO LESS PAPERWORK
Compliance for small taxpayers sometimes required generating mountains of paperwork for each source of income or deduction. The new regulations lessen this load by moving toward uniformity and clarity.
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“Small taxpayers may see less paperwork, fewer disagreements, and better assurance as the focus moves from extensive documentation to compliance based on clearly stated legislative rules,” Dr. Surana said.
Additionally, Sudhir Kaushik said that pre-populated data from banks and companies would reduce the need for additional verification. He said that this lowers the possibility of human input mistakes and facilitates the proper and timely filing of returns by paid personnel.
EXEMPTIONS AND CLEARER DEDUCTIONS
Tax preparation has always been challenging due to the many complicated and dispersed laws. This is what the new legislation aims to address. Six schedules containing information in tabular form have replaced the exemptions formerly stated under Section 10.
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This eliminates out-of-date exemptions and enhances readability. According to Dr. Surana, “the Income Tax Bill, 2025 has simplified complicated rules like Section 80C and moved specific sections to a separate schedule for improved clarity.”
“The Act expressly specifies qualifying deductions, exclusions, and restrictions under several sections, such as 80C, 80D, and home rent allowances,” Kaushik said. This eliminates uncertainty and assists salaried staff in making well-informed tax planning decisions.
ASSISTANCE FOR NEW TAXPAYERS
The tax system may seem complex to newcomers. The revised Bill uses simpler language in an attempt to make it more approachable. For instance, the more straightforward “tax year” has taken the role of “prior year” and “assessment year.”
Now that all of the important definitions are in one location, they are simpler to locate. According to Surana, “this Bill introduces the Taxpayer’s Charter, which explains taxpayer rights and duties, enabling newcomers navigate the process with greater confidence.”
“First-time taxpayers can better comprehend the filing procedure thanks to simplified forms, clear step-by-step directions, and pre-filled information,” Kaushik said.
WORK TO INCREASE VOLUNTRAY COMPLIANCE
Not only do the modifications save time, but they also hope to increase the number of people who voluntarily submit taxes. A 48-month window for amended returns, a higher zero-tax threshold of up to Rs 12 lakh (under specific circumstances), and easier refund processes might all help boost confidence, according to Surana.
“The Bill greatly lowers the difficulty of compliance by streamlining the statutory wording. According to Dr. Surana, these modifications could improve the system’s perceived fairness, which is “a critical component in moving reluctant persons into voluntary filing.”
Kaushik further said that steps like increasing TDS and TCS and monitoring significant cash transactions would eventually contribute to improved adherence.
Reduced expenses and filing time
With most information already filled in and forms streamlined, taxpayers no longer have to rely as much on experts. Immediately, this saves money and time.
“In the majority of situations, taxpayers can file appropriately without expert help, leading to overall efficiency and ease,” Kaushik said.
A FIRST STEP IN THE DIRECTION OF A FRIENDLY TAX SYSTEM
One important step in reducing the anxiety associated with tax compliance is the Income Tax Bill, 2025.
It guarantees that taxpayers, whether novices or experts, may file returns with more confidence by lowering language, decreasing paperwork, and presenting information in an easy-to-understand and organized manner.
As the experts point out, the legislation aims to increase systemic justice and trust in addition to streamlining paperwork, which might lead to more individuals falling within the tax scope in the years to come.