Income Tax Act 2025 PDF: How to download full Income Tax Act 2025 document; check link

The new Income Tax Bill 2025 is aimed at simplifying the current tax system through clear language and features important updates for income tax return (ITR) filers.

The new Bill will replace the Income Tax Act, 1961. It includes all the relevant tax laws updated till the Finance Act, 2025.

As per Finance Minister Nirmala Sitharaman, the new bill was needed as some parts of the old bill have become outdated, and a new legislation was needed to make it more user-friendly.

A total of 75,000 person-hours have gone into the drafting of the Bill, FM said.

New Income Tax Bill: Key highlights for taxpayers

• Individuals can now claim TDS refunds even if they have filed the ITR after the deadline.

• There will be no penalty for delayed filings. This means that individuals can claim refunds without penalty even if their return of income is filed after the statutory deadline.

• The full amount of a commuted pension will now qualify for a full tax deduction. This is a big tax relief for pensioners.

• Under the new bill, users can claim tax exemptions on payments made from the National Pension System (NPS) Trust to subscribers of the Unified Pension Scheme.