Finance Minister Nirmala Sitharaman presented the new Income Tax Bill 2025 to Lok Sabha on Thursday. The Select Committee has received it for review after its introduction in the Lok Sabha. Lok Sabha Speaker Om Birla has thus called off lower house business until March 9. The second budget session will begin on March 10 at 11 am. The committee might provide its report on the first day of the second budget session. Parliament will review the final report this committee produces to pass the measure.
Let me tell you, the government, in the new bill, has given legislation simplification priority. The new law will replace the previous Income Tax Act of 1961, which has become antiquated today and has grown somewhat complex due to numerous changes. The government has emphasized legal simplicity and improvements in the new Income Tax Bill 2025.
Reduced number of parts
The new Income Tax Bill 2025 includes fewer sections—from 819 to 536—than before. This and the revised bill’s total word count have dropped from 5 lakh to 2.5 lakh; unnecessary exemptions have also been eliminated. The new Income Tax Bill aims to simplify matters. Also, ‘assessment year’ has been substituted with ‘tax year.’.
Getting ready for FY 2026–27
The government is attempting to implement the new tax law from 2026–27. The bill does not alter the current tax slab or reduce the offered tax exemption. This measure seeks to make the six-decade-old legislation fit for the present. This will increase India’s tax base strength and, over time, help to stabilize income.
Try to streamline the tax rules.
This bill also puts India’s tax structure closer to global best practices. One of the main points of emphasis in the new Income Tax Bill 2025 is technologically driven evaluations. The new Income Tax Bill also contains tables, examples, and formulas to clarify tax provisions so that individuals and companies can comprehend more easily. The government aims to streamline tax laws and encourage firms to focus on expansion rather than tax preparation, which drives the new Income Tax Bill 2025. This will help to boost the national economy.
