The Income Tax Bill 2025 is here and it provides a simplified version of the Income Tax Act 2025. While a lot of things remain the same, there are several changes too. The bill will come into effect from April 1, 2026.
The Income Tax Department has launched an online self-help tool that will help taxpayers understand the proposed changes in the Income Tax Bill 2025. The utility can be accessed here.
Taxpayers can navigate through the tool with the help of a dropdown menu. One can select a section from the Income Tax Act 1961 and use the tool to see the corresponding clause from the new Income Tax Bill 2025. The data is presented in a structured tabled format for easier comparison.
“The self-help tool introduced by the Central Board of Direct Taxes (CBDT) serves as a utility to compare the provisions of the Income-tax Act, 1961 (as amended by the Finance (No. 2) Act, 2024) with the corresponding clauses of the Income-tax Bill, 2025. It is designed to facilitate reference between the existing and proposed provisions. However, it does not provide answers to specific income tax queries or offer interpretational guidance on complex tax matters” says Suresh Surana, a Mumbai-based chartered accountant.
Taxpayers seeking clarity on intricate tax issues may need to refer to official notifications, or circulars, or consult a tax professional for precise guidance.
The self-help tool has been recently released and is intended for reference in relation to the proposed Income-tax Bill, 2025, which would be applicable from the tax year 2026-27 onwards. “Therefore, taxpayers do not need to rely on this utility for filing their returns for the financial years 2024-25 and 2025-26. For current tax compliance and return filing, taxpayers should continue referring to the existing Income-tax Act, 1961, and seek professional advice if required to ensure accurate reporting and compliance,” says Surana.
