Union Budget 2025 Live: New Income Tax Bill To Be Tabled In Parliament This Week; Key Changes Expect

The Union Budget for the fiscal year 2025-2026 was presented on Feb 1st. The Parliament is now focusing on other key legislative discussions during the ongoing first phase of the budget session, which will continue until February 13. One of the major announcements by the Union Finance Minister Nirmala Sitharaman is the introduction of the New Income Tax Bill, expected to be tabled in Parliament this week. This bill is expected to replace the 1961 Income Tax Act, modernizing tax laws to align with today's economic needs.

What is the New Income Tax Bill?

Nirmala Sitharaam said that the proposed New Income Tax Bill has been drafted to simplify tax laws and make them easier for taxpayers to understand and comply with. The Income tax bill was apparently drafted in just six months as per her previous budget speech. Sitharaman in her Budget 2025 speech stated that the new law would be "clear and direct," reducing the existing tax code by almost half in terms of chapters and words. This reform is expected to increase tax transparency and ensure better compliance for both taxpayers and tax authorities.

Union Budget 2025 Highlights

The Union Budget 2025 introduced several key measures aimed at providing financial relief to the middle class One of the biggest highlights of the budget is the revised income tax structure, which offers significant relief to salaried individuals. The Finance Minister announced that individuals earning up to Rs.12 lakh per year will now have zero tax liability. Additionally, for the salaried class, the standard deduction of Rs.75,000 has been introduced, effectively making income up to Rs.12.75 lakh tax-free. Apart from tax relief, the budget also outlined capital expenditure (capex) plans. While previous years saw an aggressive push in capex growth, this time the government has opted for a more measured approach. For FY26, the capital expenditure has been set at Rs.11.2 lakh crore, with a focus on infrastructure development while maintaining fiscal discipline.

Details On Budget 2025

The Budget Session of Parliament is being conducted in two phases. The first phase commenced on January 31 and will continue until February 13, during which crucial discussions on economic policies and fiscal planning will take place. Today's budget presentation is the highlight of this phase, drawing attention from policymakers, businesses, and citizens alike.

Following a brief recess, the second phase of the Budget Session will resume on March 10 and conclude on April 4. This phase will involve detailed discussions, debates, and approvals related to the budget proposals presented today.

Economic Survey 2025

The Economic Survey of India was presented in Parliament by the Finance Minister on Jan 31st. The Survey highlighted steady global growth at 3.3% in 2023, with inflation easing and central banks cutting rates. India's GDP is projected to grow 6.4% in FY25, supported by strong agriculture, industrial, and services sectors. Government capital expenditure has risen, while retail inflation softened to 4.9%. Despite external trade challenges, India remains the seventh-largest services exporter. The banking sector is stable, with NPAs at a 12-year low of 2.6%. GDP growth for FY26 is expected between 6.3%-6.8%.

Union Budget Expectations Live Updates: Proposal to Raise TP Documentation Threshold

Rajiv Bhutani, Partner, Transfer Pricing, Tax & Regulatory Services, BDO India asserts, “Since the introduction of TP provisions in 2001, the threshold for maintaining TP documentation for taxpayers has been set at INR 1 crore in aggregate value of international transactions. However, as businesses expand and related-party transactions increase, this threshold appears outdated. The expectation is to raise the threshold for mandatory TP documentation to INR 10 crores, in line with the growing scale of multinational enterprises in India.”

Source:- Goodreturns