New Income Tax Bill: Union Finance Minister Nirmala Sitharaman introduced the New Income Tax Act, 2025 in the Lok Sabha on Thursday, February 13. This new act has been brought to make the rules related to income tax more simple and accessible for the general public. This bill will replace the existing Income Tax Act 1961.
New Income Tax Bill: Union Finance Minister Nirmala Sitharaman on Thursday introduced the New Income Tax Bill, 2025 in the Lok Sabha. This new bill has been brought to make the rules related to income tax more simple and accessible to the general public. This bill will replace the existing Income Tax Act 1961. The new bill will have a total of 536 sections. The Finance Minister had announced the introduction of this bill in the current session of Parliament during his budget speech on February 1.
The aim of the new Income Tax Bill is to simplify the language of the rules related to income tax by removing the trap of difficult words and unnecessary provisions and using short and simple sentences. For example, a new term called ‘Tax Year’ is being introduced in it, which will eliminate complex words like ‘Previous Year’ and ‘Assessment Year’.
The new Income Tax Bill is a total of 622 pages. It includes 536 sections, 23 chapters and 16 schedules. Whereas the current Income Tax Bill, 1961 has 298 sections, 23 chapters and 14 schedules.
The Union Cabinet on February 7 approved the new Income Tax Bill, which will replace the six-decade-old Income Tax Act 1961.
Some opposition members opposed
Some opposition members, including Trinamool Congress’s Saugata Roy, opposed the introduction of the bill in the House. The Finance Minister introduced the bill in the House amid objections from the members and requested Lok Sabha Speaker Om Birla to send it to the Select Committee of the House.
The new bill will be free from all amendments and sections that are no longer relevant. Also, its language will be such that people will be able to understand it without the help of tax experts. Meanwhile, the proceedings of the Lok Sabha have now been adjourned till 11 am on March 10.
