Income-Tax Bill 2025 introduced in Lok Sabha, promises simplicity

Finance Minister Nirmala Sitharaman introduced the Income-Tax Bill 2025 in the Lok Sabha on Thursday, aiming to overhaul and simplify existing income tax laws. Sitharaman told the lower house that the new legislation is designed for greater clarity, featuring fewer sections and chapters than the current Income Tax Act, making it more accessible to the general public.

The Finance Minister recommended that the bill be sent to a select committee of Parliament for further scrutiny, with the committee's report due on the first day of the next session. Responding to objections from opposition MPs, Sitharaman clarified that the proposed bill comprises 536 sections, a considerable decrease from the 819 sections in the 1961 Income Tax Act. She also highlighted that the new bill's word count is almost half that of the current legislation. Sitharaman stated that the 1961 act has undergone approximately 4,000 amendments since its implementation, which are now under review.

Pending parliamentary approval, the new law is expected to take effect on April 1, 2026.

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