Finance Minister Nirmala Sitharaman introduced a new Income Tax Bill in Lok Sabha at around 2.00 pm (IST) today.
The new bill is designed to simplify and overhaul the present Income Tax Act of 1961. The present bill was enacted in 1961 and came into effect in 1962. It contained 298 sections and over the years it witnessed several amendments, which made it complicated and difficult to comprehend by the taxpayers.
The government, in a bid to simplify the present bill, has introduced a new income tax bill, which will have 536 sections, 23 chapters and 16 schedules within 622 pages.
The new bill contains tables and formulae, thereby replacing long explanations and legal notes. Also, it consists of a new section which clearly outlines the rights and obligations of the taxpayers.
Further, the new bill uses simpler and clearer words and has let go of complicated legal terms.
The term ‘Tax Year’ has been introduced, which replaces the term ‘Assessment Year’, which often led to confusion among the taxpayers.
CA Chintan Vajani, Leader – Taxation & FEMA Advisory, NPV & Associates LLP, Chartered Accountants said, “In an effort to make tax laws more concise, clear, and user-friendly, the Finance Minister has introduced the Income-Tax Bill 2025 to overhaul the existing tax framework. The bill simplifies language, removes redundant sections, and replaces the complex alphanumeric section numbering with a straightforward numerical system.”
This is a developing story. It will be updated.