New Income Tax Bill to be introduced next week, announces Nirmala Sitharaman

A new Income Tax Bill, which seeks to simplify the current laws on the Income Tax, will be introduced in Parliament next week, Finance Minister   Nirmala Sitharaman announced on Saturday, February 1, as she presented the Union Budget 2025. The new Income Tax Bill seeks to simplify the current Income Tax law, enhancing the convenience of the the Indian citizens. The new Income Tax Bill also seeks to make the laws comprehensible for the general public and reduce the number of pages by about 60 per cent.

“The government will introduce new Income Tax Bill next week in Parliament to take forward 'trust first, scrutinise later' concept. New Income Tax Bill will be half of the current volume; clear and direct in wording,” Nirmala Sitharaman said. Income Tax Budget 2025 LIVE

When implemented, the new Income Tax Bill will simplify calculating and filing the Income Tax. The first half of the Union Budget 2025 is scheduled from January 31 to February 13. Also Read | Nirmala Sitharaman’s Tathastu to middle class, no Income Tax up to ₹12 lakh

Presenting the Budget for 2025-26, Nirmala Sitharaman said that over the past 10 years, the government has implemented several reforms for the convenience of taxpayers, including faceless assessment.

In the July 2024 Budget announcement after the Lok Sabha elections, Finance Minister Nirmala Sitharaman had announced a comprehensive review of the six-decade old Income Tax Act, 1961 – 23 chapters and 298 sections – within six months. During the announcement of the Union Budget 2025, the finance minister declared that the new Income Tax Bill will be introduced next week.

According to the reports, the new Income Tax Bill will be a new law and not amendment of the current Income Tax Act. “The new Income Tax law will be a new law and not an amendment to the existing Act. Currently, the draft law is being vetted by the law ministry.”