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Parliament Budget Session: Nirmala Sitharaman tabled the new Income-Tax Bill, 2025, in Lok Sabha today in the Lok Sabha.
Parliament Budget Session: Income Tax Bill 2025 tabled in Lok Sabha (Photo: Sansad TV)
New Income Tax Bill: Union Finance Minister Nirmala Sitharaman on Thursday tabled the new Income Tax Bill, 2025 in the Lok Sabha. The bill aims to simplify tax language by removing jargon and unnecessary provisions and using concise sentences. It introduces a new term called ‘Tax Year’, eliminating the complex terms like ‘Previous Year’ and ‘Assessment Year’.
She had announced the introduction of the bill in the ongoing Budget Session of the Parliament during her Budget speech on February 1.
While moving the Bill for introduction, Sitharaman urged Birla to refer the draft law to a select committee of the House, which will submit its report by the first day of the next session. She urged the speaker to take a call on the proposed panel’s composition and rules.
The bill aims to simplify legal language, making it easier for taxpayers to understand the provisions.
It will not create new taxes, but will focus on streamlining tax laws, minimizing legal complexities, and easing compliance for taxpayers, as confirmed earlier by the finance secretary.
The new legislation will feature shorter sentences, fewer provisos, and clearer explanations. The government has also stated that the new law will be 50% shorter than the current Act. A key objective is to reduce litigation.
The bill may introduce reduced penalties for certain offenses, creating a more taxpayer-friendly system.
The proposed law will eliminate unnecessary amendments and sections, using straightforward language that the public can comprehend without needing professional tax advice.
The New Income Tax Bill contains 536 sections, 23 chapters, and 16 schedules within 622 pages, while the existing Income Tax Act, 1961, has 298 sections, 23 chapters, and 14 schedules.
If approved, the new tax system will take effect in the 2025-26 financial year and apply to taxpayers starting from the 2026-27 assessment year.
