Thread by @AshishMeher7

🚨 I just read all 622 pages of the new Income-Tax Bill, 2025… so you don’t have to.

India’s tax law is getting its BIGGEST rewrite in 60+ years.
Here are the 10 most important changes you MUST know 👇🧵

1️⃣ Go-Live Date

Effective 1 April 2026

Replaces the Income-tax Act, 1961 entirely

Fresh start: new definitions, new compliance structure, new penalties

2️⃣ Crystal-Clear Definitions

‘Agricultural income’ now more tightly defined

‘Capital asset’ covers more instruments (including ULIPs)

Distance & population criteria for rural/urban agricultural land spelt out in kms & census numbers

Loophole language from 1961 Act cleaned up

3️⃣ Capital Gains Overhaul

New provisions for:

Market Linked Debentures

Slump sale

Unlisted shares & valuation methods

Special rules on “full value of consideration” to curb under-reporting

Exemptions linked to SEZ shifts & specific bonds retained, but timelines are stricter

4️⃣ Deductions 2.0

Electric vehicle loan interest deduction stays ✅

New deductions for:

Bio-degradable waste businesses

Employment cost increases

Units in North-East & SEZs

Political donations deductions under stricter norms

5️⃣ Crypto is Officially on the Radar

First-time explicit clause: “Obligation to furnish info on crypto-asset transactions”

No more grey zone — it’s in black & white

6️⃣ Faceless Everything

Faceless assessment, appeals, information collection

Meant to cut corruption & bias — but will require flawless tech execution

7️⃣ Non-Residents & Global Income

Clearer “residency” tests

Rules for apportioning global income with Indian links

Special provisions for foreign institutional investors & offshore structures

8️⃣ Penalties Have Teeth

Under-reporting / misreporting = heavy fines

Crypto non-reporting = penalties

Strict deadlines for compliance across filings & information requests

9️⃣ Political Party & NGO Scrutiny

Income exemptions still there, but with more disclosure & compliance

Corpus donations & “specified violations” clauses tightened

🔟 Why You Should Care

Last rewrite: 1961.

This will decide how much of your hard-earned ₹ you keep from 2026 onwards.

If you earn, invest, or trade — this touches you.

💬 Which section should I break down next in detail — Deductions, Capital Gains, or Crypto Tax?

Follow @AshishMeher7 for more such updates.

#IncomeTax #Budget2025 #TaxReform #India

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