Finance Minister Nirmala Sitharaman introduced the Income Tax Bill 2025 on 13 February 2025, which aims to simplify the old tax rules. It includes provisions for adjusting losses from house properties against income from other properties and exemption on capital gains.
Income Tax Bill 2025: On 13 February 2025, Finance Minister Nirmala Sitharaman introduced the Income Tax Bill 2025 in the Lok Sabha. The purpose of this bill is to simplify the old and complex tax rules. The government wants the common people to easily understand the tax rules and follow them without any hassle. This bill is part of the announcement made in the budget last year. In this, some rules related to house properties have been changed. Now the loss from one house can be added to the income of the second house. But if the loss is more than Rs 2 lakh, then it cannot be added to the second income.
According to this bill, if someone suffers a loss from the property of the house, then that loss can be adjusted with the income of the second property. But if the loss is more than Rs 2 lakh, then it cannot be added to the income from salary or business.
Time limit up to 8 years
This loss can be carried forward for the next 8 years. But keep in mind, this loss can be adjusted only against the income earned from house property. It cannot be added to income from salary, business or any other source.
For example, Rahul’s annual income is Rs 7 lakh. This year he incurred a loss of Rs 3.5 lakh from house property. Out of this, Rs 2 lakh can be added to his salary income. Now Rahul’s total taxable income will be Rs 5 lakh (7 lakh – 2 lakh).
But the remaining loss of Rs 1.5 lakh will be carried forward to the next year. Next year, this loss can be adjusted only against the income from house property. If Rahul does not have any income from house next year, then this loss can be carried forward like this for the next 8 years.
Exemption on capital gains
The government has changed some rules on capital gains. According to the Central Board of Direct Taxes (CBDT), if a person chooses the new tax system (115BAC), then he will not get certain types of tax exemptions.
- If a person sells his property and buys a new house a year earlier or two years later, he can get exemption from capital gains tax.
- If he is building a new house, then this time limit can be extended to three years.
- But if the money received from the sold property is more than the cost of the new house, then tax will be levied on that additional amount.
- If a person sells the purchased property within 3 years, then his purchase cost will be considered zero and higher tax will be levied.