New Delhi: Union Finance Minister Nirmala Sitharaman is set to introduce the much-anticipated Income-Tax Bill 2025 in the Lok Sabha today, marking a significant step towards modernizing India’s tax system. The new bill is designed to replace the six-decade-old Income-Tax Act of 1961, making tax laws simpler, more transparent, and taxpayer-friendly.
The proposed legislation aims to streamline tax provisions, eliminate outdated sections, and enhance compliance efficiency. Despite adding 238 more sections compared to the 1961 Act, the bill is expected to be more concise and user-friendly.
After its introduction, the bill is likely to be sent to a parliamentary committee for a detailed review before being debated and passed by both Houses of Parliament. Once it receives presidential approval, it will become law.
The government has incorporated over 7,000 suggestions from various stakeholders while drafting the bill. Key reforms include simplification of tax language, removal of obsolete provisions, and improved mechanisms for dispute resolution.
The Income-Tax Bill 2025 is expected to usher in a new era of transparency and efficiency, aligning India’s taxation policies with global best practices and making tax compliance easier for businesses and individuals alike.
