Latest news with #NewIncomeTaxBill
Time of India
27-05-2025
- Business
- Time of India
Income tax changes: New Income Tax Bill & New Income Tax Regime
New Income Tax Regime Income tax changes: Finance Minister Nirmala Sitharaman introduced several sweeping changes under the new income tax regime during her Budget 2025 speech earlier this year. The new income tax regime, which is also the default income tax regime, has new tax slabs effective FY 2025-26. Additionally, the basic tax exemption limit and the income level up to which taxpayers are required to pay zero or nil tax has also undergone a change. The most important is that individuals having a taxable income up to Rs 12 lakh will have to pay ZERO tax. The new income tax regime was introduced by the Narendra Modi government a few years ago as an alternate regime for taxpayers to file their tax returns under. The aim of the new income tax regime was to make the income tax return filing process easier without too much paperwork and documentation. However, unlike the old income tax regime, the new tax regime does not offer the most popular tax exemptions and deductions like Section 80C, Section 80D, LTA, HRA etc. One major deduction that is available under the new income tax regime is standard deduction. In fact, the standard deduction available under the new tax regime is higher at Rs 75,000 compared to Rs 50,000 under the old income tax regime. Additionally, the government proposes to get the New Income Tax Bill passed this year, which is a simplified and up-to-date version of the Income Tax Act 1961. The New Income Tax Bill will have key changes for taxpayers as well. As changes in the income tax return filing, income tax calculation come about, it is important for taxpayers to keep a tab on FAQs and important documents released by the government to aid the common man. You can track all the important documents related to the new income tax regime and the New Income Tax Bill here: Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
21-05-2025
- Business
- Economic Times
One-time set-off of long-term capital loss against STCG: New income tax bill 2025 allows this from tax year 2026-27 onwards
What did the New Income Tax Bill 2025 say about long term capital loss? What does this mean? Live Events How different is the proposed change in comparison with the old provisions of capital gains? What might be the impact of these changes for individual taxpayers? A temporary relief from the otherwise restrictive loss set-off rules under Income Tax Faster utilisation of capital losses and reduced income tax outgo This can help with tax planning process for FY 2026–27 onwards Why is this set-off provisions relief a one-time measure and not recurring? The new income tax bill, 2025 has introduced a one-time relief for those who want to reduce their capital gains tax outgo by reducing their short-term capital gains (STCG). In technical terms, the new income tax bill , 2025 allows any brought forward long-term capital loss (LTCL) incurred up to March 31, 2026, to be set-off against any short-term capital gains (STCG). If you notice closely, the word is 'any', so it means any LTCL if incurred under the Income Tax Act, 1961 can be set-off with STCG . But since this is the New Income Tax Bill , 2025 so it is likely to be applicable from April 1, 2026 onwards i.e. tax year 2026–27 onwardsThis is a big positive development especially when you consider the fact that the existing Income Tax Act, 1961 allowed long term capital loss to be set-off only against long term capital gains (LTCG). So, by opening up the feature to set-off LTCL with both LTCG and STCG, the total capital gains tax outgo of an individual may get significantly lower. This may help many taxpayers, including ones who have been carrying forward the losses and are eligible to do so for the next two below to know more about this change in the proposed income tax bill, 2025 and what are its eligibility New Income Tax Bill, 2025 said: 'any amount of loss under the head capital gains, whether related to a long-term capital asset or a short term capital asset, referred to in section 74 of the repealed Income-tax Act, brought forward from the tax year beginning before the 1st April, 2026 had the Income-tax Act, 1961 not been repealed, shall be set off and carried forward against the income under the head 'Capital gains' computed under this Act for any tax year beginning on or after the 1st April, 2026 up to eight financial years immediately succeeding the financial year in which such loss was first computed under the repealed Income-tax Act;'This means under clause 536 (n) of the Income Tax Bill, 2025 taxpayers are allowed to carry forward and set off of brought forward LTCL incurred up to 31 March 2026 against all future capital gains (including STCG) from tax year 2026-27 Accountant (Dr.) Suresh Surana explains: 'Under clause 536(n) of the new tax bill, 2025 any capital loss, whether long-term or short-term, computed under the old Income Tax Act, 1961 and brought forward as on 31 March 2026, may be set off and carried forward against 'income under the head 'Capital gains'' under the new tax bill 2025. Notably, this provision does not draw a distinction between long-term and short-term capital gains for the purpose of set-off.'Surana says, previously under Section 74 of the Income-tax Act, 1961 , long-term capital losses (LTCL) could be carried forward and set off only against long-term capital gains (LTCG), now STCG is also Mowar, Tax Partner EY India, explains: 'Currently, the Income Tax Act, 1961 allows the set-off of brought forward Long-Term Capital Losses (LTCL) only against Long-Term Capital Gains (LTCG), limiting taxpayers' flexibility to offset LTCL with Short-Term Capital Gains (STCG).'Mowar adds: 'The proposed new Income Tax Bill, 2025 continues this restriction for LTCL incurred after April 1, 2026, but the 'Repeal and Saving' clause in Section 536 (specifically 536(2)(n)) permits the set-off of LTCL incurred until March 31, 2026, against any capital gains under ITB 2025 for tax years starting on or after April 1, 2026, for up to eight financial years immediately succeeding the financial year in which such loss was first computed under the current Income Tax Act, 1961.'We have asked experts about what might be the impact of these proposed changes in the new tax bill, 2025, here's what they said:Surana says: The transitional provision under Section 536(n) of the Income-tax Bill, 2025, carries significant implications for taxpayers holding accumulated capital losses, particularly long-term capital losses (LTCL), as on 31 March 2026. By permitting the set-off of such brought forward losses, whether long-term or short-term, against any form of capital gains under the new Income Tax Bill, 2025 the legislation offers a temporary but meaningful departure from the restrictive loss-set-off rules under the current Income-tax Act, says: 'This broader scope of set-off could result in faster absorption of losses, leading to reduced tax outgo in the initial years of transition and better cash flow management. It also opens up tax planning opportunities for taxpayers who might have been unable to fully utilise their LTCL due to the absence of corresponding LTCG in the past.'Mowar from EY India says: There exists tax planning opportunities. 'Taxpayers can sell investments likely to incur long-term losses before April 1, 2026, allowing them to offset these losses against future short-term capital gains. This one-time measure also aids taxpayers in adjusting to the new tax regime.'Notably, the 'Repeal and Saving' clause under which clause 536 (2)(n) falls, does not require that long-term and short-term losses be utilised separately. 'This dispensation, albeit temporary, allows taxpayers to leverage their losses more effectively, reducing overall tax liabilities. However, losses incurred after April 1, 2026, will still face the same limitations, with long-term losses offsetting only long-term gains,' says says the clause 536 (2)(n) of the new tax bill, 2025 is written under the 'Real and Saving clause'.'It is important to note that 'Repeal and Saving' clauses are typically included when old legislation is replaced with new one, ensuring that certain rights or obligations under the old law are preserved. This was clarified by the tax department in the General FAQ issued with the new tax bill, 2025 also,' says says: 'The majority may argue that this appears to be a well-thought-out dispensation given the distinction and specific provisions made, others may view it as an oversight, as it contradicts established provisions. Thus, it remains to be seen how the provision is ultimately enacted.'
Time of India
21-05-2025
- Business
- Time of India
One-time set-off of long-term capital loss against STCG: New income tax bill 2025 allows this from tax year 2026-27 onwards
Tired of too many ads? Remove Ads What did the New Income Tax Bill 2025 say about long term capital loss? What does this mean? Tired of too many ads? Remove Ads What might be the impact of these changes for individual taxpayers? A temporary relief from the otherwise restrictive loss set-off rules under Income Tax Faster utilisation of capital losses and reduced income tax outgo Tired of too many ads? Remove Ads This can help with tax planning process for FY 2026–27 onwards Why is this set-off provisions relief a one-time measure and not recurring? The new income tax bill, 2025 has introduced a one-time relief for those who want to reduce their capital gains tax outgo by reducing their short-term capital gains STCG ). In technical terms, the new income tax bill , 2025 allows any brought forward long-term capital loss ( LTCL ) incurred up to March 31, 2026, to be set-off against any short-term capital gains (STCG). If you notice closely, the word is 'any', so it means any LTCL if incurred under the Income Tax Act, 1961 can be set-off with STCG. But since this is the New Income Tax Bill , 2025 so it is likely to be applicable from April 1, 2026 onwards i.e. tax year 2026–27 onwardsThis is a big positive development especially when you consider the fact that the existing Income Tax Act, 1961 allowed long term capital loss to be set-off only against long term capital gains ( LTCG ). So, by opening up the feature to set-off LTCL with both LTCG and STCG, the total capital gains tax outgo of an individual may get significantly lower. This may help many taxpayers, including ones who have been carrying forward the losses and are eligible to do so for the next two below to know more about this change in the proposed income tax bill, 2025 and what are its eligibility New Income Tax Bill, 2025 said: 'any amount of loss under the head capital gains, whether related to a long-term capital asset or a short term capital asset, referred to in section 74 of the repealed Income-tax Act, brought forward from the tax year beginning before the 1st April, 2026 had the Income-tax Act, 1961 not been repealed, shall be set off and carried forward against the income under the head 'Capital gains' computed under this Act for any tax year beginning on or after the 1st April, 2026 up to eight financial years immediately succeeding the financial year in which such loss was first computed under the repealed Income-tax Act;'This means under clause 536 (n) of the Income Tax Bill, 2025 taxpayers are allowed to carry forward and set off of brought forward LTCL incurred up to 31 March 2026 against all future capital gains (including STCG) from tax year 2026-27 Accountant (Dr.) Suresh Surana explains: 'Under clause 536(n) of the new tax bill, 2025 any capital loss, whether long-term or short-term, computed under the old Income Tax Act, 1961 and brought forward as on 31 March 2026, may be set off and carried forward against 'income under the head 'Capital gains'' under the new tax bill 2025. Notably, this provision does not draw a distinction between long-term and short-term capital gains for the purpose of set-off.'How different is the proposed change in comparison with the old provisions of capital gains?Surana says, previously under Section 74 of the Income-tax Act, 1961 , long-term capital losses (LTCL) could be carried forward and set off only against long-term capital gains (LTCG), now STCG is also Mowar, Tax Partner EY India, explains: 'Currently, the Income Tax Act, 1961 allows the set-off of brought forward Long-Term Capital Losses (LTCL) only against Long-Term Capital Gains (LTCG), limiting taxpayers' flexibility to offset LTCL with Short-Term Capital Gains (STCG).'Mowar adds: 'The proposed new Income Tax Bill, 2025 continues this restriction for LTCL incurred after April 1, 2026, but the 'Repeal and Saving' clause in Section 536 (specifically 536(2)(n)) permits the set-off of LTCL incurred until March 31, 2026, against any capital gains under ITB 2025 for tax years starting on or after April 1, 2026, for up to eight financial years immediately succeeding the financial year in which such loss was first computed under the current Income Tax Act, 1961.'We have asked experts about what might be the impact of these proposed changes in the new tax bill, 2025, here's what they said:Surana says: The transitional provision under Section 536(n) of the Income-tax Bill, 2025, carries significant implications for taxpayers holding accumulated capital losses, particularly long-term capital losses (LTCL), as on 31 March 2026. By permitting the set-off of such brought forward losses, whether long-term or short-term, against any form of capital gains under the new Income Tax Bill, 2025 the legislation offers a temporary but meaningful departure from the restrictive loss-set-off rules under the current Income-tax Act, says: 'This broader scope of set-off could result in faster absorption of losses, leading to reduced tax outgo in the initial years of transition and better cash flow management. It also opens up tax planning opportunities for taxpayers who might have been unable to fully utilise their LTCL due to the absence of corresponding LTCG in the past.'Mowar from EY India says: There exists tax planning opportunities. 'Taxpayers can sell investments likely to incur long-term losses before April 1, 2026, allowing them to offset these losses against future short-term capital gains. This one-time measure also aids taxpayers in adjusting to the new tax regime.'Notably, the 'Repeal and Saving' clause under which clause 536 (2)(n) falls, does not require that long-term and short-term losses be utilised separately. 'This dispensation, albeit temporary, allows taxpayers to leverage their losses more effectively, reducing overall tax liabilities. However, losses incurred after April 1, 2026, will still face the same limitations, with long-term losses offsetting only long-term gains,' says says the clause 536 (2)(n) of the new tax bill, 2025 is written under the 'Real and Saving clause'.'It is important to note that 'Repeal and Saving' clauses are typically included when old legislation is replaced with new one, ensuring that certain rights or obligations under the old law are preserved. This was clarified by the tax department in the General FAQ issued with the new tax bill, 2025 also,' says says: 'The majority may argue that this appears to be a well-thought-out dispensation given the distinction and specific provisions made, others may view it as an oversight, as it contradicts established provisions. Thus, it remains to be seen how the provision is ultimately enacted.'
Time of India
25-04-2025
- Business
- Time of India
PNB launches NIRMAAN 2025 campaign with zero processing fees on home and car loans
Punjab National Bank (PNB), a public sector bank, has announced the launch of its special retail loan campaign, 'PNB NIRMAAN 2025', aimed at making home and car ownership more affordable. The campaign is active and is available across all PNB branches and digital platforms, including the PNB One app and PNB's official website, according to the PNB press release. What is PNB NIRMAAN 2025? 'PNB NIRMAAN 2025' is a time-bound loan offer designed to attract home buyers, car buyers, and students seeking financial assistance. As part of this initiative, PNB is offering a host of exclusive benefits, including: Income Tax Guide Income Tax Slabs FY 2025-26 Income Tax Calculator 2025 New Income Tax Bill 2025 Zero processing and documentation charges on home loans and car loans Zero NEC (No Encumbrance Certificate), legal, and valuation fees for home loan takeovers above a specified amount Interest rate concessions of 5 basis points (bps) on home, car, and education loans. Latest lending rates in April 2025: HDFC Bank, SBI, Bank of Baroda, Canara Bank, Bank of India Latest PNB Marginal Cost of Funds based Lending Rate (MCLR) rates (effective from April 1, 2025): Still confused between New vs Old Tax Regime? Find out which one saves you more with our tax calculator! MCLR W.E.F. 01-04-2025 MCLR TENOR Revised w.e.f. 01.04.2025 Overnight 8.40% One month 8.50% Three month 8.70% Six month 8.90% One year 9.05% Three years 9.35% Revised PNB Repo Linked Lending Rates (RLLR) (effective from April 10, 2025): New RLLR: 8.65% (Repo Rate 6.00% + Mark-up 2.65%) Effective lending rate: 8.85% (RLLR + BSP of 0.20%) Live Events This revised rate will apply to floating rate personal loans, including home loans, auto loans, and MSME loans, with the next interest rate reset due after 3 years from the account opening date. According to the PNB website, 'The RLLR has been changed from 8.90% to 8.65% {Repo Rate (6.00%) + Mark-up (2.65%)} w.e.f. 10th April 2025 for all customers. Along with RLLR, BSP of 20 bps will be charged.' What is RLLR? Repo-linked lending rate (RLLR) is the interest rate at which banks extend loans to customers, based on the repo rate set by RBI. The term 'repo-linked lending rate' refers to an interest rate that is linked to the repo rate. An RBI circular issued in October 2019 mandates that banks link their retail loans to external benchmark lending rates, known as E-BLR. Consequently, the repo rate has become the benchmark for most banks. How to apply for PNB loans under NIRMAAN 2025 Interested customers can apply for loans under the NIRMAAN 2025 scheme by visiting any PNB branch or logging into the PNB One mobile app or website. The streamlined digital application process ensures faster approvals and seamless documentation.
Time of India
24-04-2025
- Business
- Time of India
Your parents, family members can use your UPI for payments via UPI circle: Know how to use it on BHIM app
NPCI BHIM Services Limited (NBSL), subsidiary of the National Payments Corporation of India (NPCI), announced the launch of UPI Circle . This feature allows users to safely delegate UPI access to trusted individuals—such as parents, children, or other family members—without compromising security. Income Tax Guide Income Tax Slabs FY 2025-26 Income Tax Calculator 2025 New Income Tax Bill 2025 UPI ID linked to inactive mobile number? Starting April 1, it will be hard to misuse your UPI ID with recycled number What is UPI Circle? UPI Circle enables a primary user, or the UPI account holder, to authorize up to five secondary users to initiate UPI payments from their account. Each transaction initiated by the secondary user in the new BHIM app requires specific confirmation from the primary user via their UPI PIN. The new BHIM app allows the principal user to see all secondary user transactions in real time, ensuring openness and oversight. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Google Brain Co-Founder Andrew Ng, Recommends: Read These 5 Books And Turn Your Life Around Blinkist: Andrew Ng's Reading List Undo UPI Circle promotes financial inclusion by allowing people without a UPI-linked bank account to request payments from a trusted user, who can approve the transaction in real-time within the new BHIM app. How to use UPI Circle on BHIM Step 1: Download the New BHIM app (Version 4.0.2) from Play Store or App Store Step 2: Open the BHIM app and go to the UPI Circle section from the home screen or menu Live Events Step 3: Tap on 'Add Secondary User' and enter their UPI ID or scan their QR cod Step 4: Select the delegation type as 'Approve every payment' (Partial Delegation)' Step 5: The secondary user will receive a request. Once they accept the invite, they can start making payments using the primary user's account and request their primary to approve payments in real-time through the BHIM app. How does UPI Circle benefits senior citizens? Senior citizens can be authorised by a family member who will approve every payment on their behalf. They are often hesitant users of digital payments and this will help them get onboarded with a trusted level of security. How does UPI Circle benefit young adults? Parents can allow children to manage their daily or educational expenses through controlled, delegated access, and real-time approval without compromising security. Important FAQs from NPCI on UPI circle What is UPI Circle? UPI Circle is a new feature that allows a primary user to authorize a secondary user to make UPI transactions from the primary user's bank account. Who can use UPI Circle? Any UPI user who wants to securely delegate payment access can use UPI Circle to authorize trusted individuals with limited control. What are the main benefits of UPI Circle? The main benefits include broadening UPI usage across different demographics, providing financial access to those without bank accounts, and offering supervised spending for those who need it. Can I set a limit on how much the secondary user can spend? Yes, under Full Delegation, the primary user can set a maximum monthly spending limit for the secondary user. Maximum limit of Rs 15000 is allowed. Do secondary users need their own bank accounts to use this feature? No, even users without bank accounts linked on UPI can use UPI Circle feature to make payments. Are there any transaction limits for UPI Circle? Yes, under Full Delegation, per transaction limit is Rs 5000 and under partial delegation, daily UPI limits of the primary user shall be available for the secondary user.
