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Income Tax Law
President Droupadi Murmu has given her assent to the Income-tax Act, 2025, which will replace the archaic Income Tax Act, 1961. The Income Tax Act, 2025, will come into effect from the next financial year, beginning April 1, 2026. The new Act will make tax laws simple and reduce wordage in the legislation, making it easy to understand. "The Income-tax Act, 2025, has received the Hon'ble President's assent on August 21, 2025. A landmark reform replacing the 1961 Act, it ushers in a simpler, transparent & compliance-friendly direct tax regime," the Income Tax department said in a post on X. The Income Tax Bill, 2025, was passed by Parliament on August 12. The new Act does not impose any new tax rate and only simplifies the language, which was required for understanding the complex Income Tax laws. The new law removes redundant provisions and archaic language and reduces the number of Sections from 819 in the Income Tax Act of 1961 to 536 and the number of chapters from 47 to 23. Th
The Supreme Court has held that an assessee must comply with a summons and furnish a response to a show cause notice when it is issued by the central or the state tax authority. "Assessee" under the Income Tax Act of 1961 refers to any individual or entity that holds the legal liability of tax payment or any other financial commitments as specified by the Act. Thus, laying down guidelines to prevent duplication of adjudication by central and state GST authorities, a bench of Justices J B Pardiwala and R Mahadevan said that mere issuance of a summons does not enable either the issuing authority or the recipient to ascertain that proceedings have been initiated. "Where a summons or a show cause notice is issued by either the Central or the State tax authority to an assessee, the assessee is, in the first instance, obliged to comply by appearing and furnishing the requisite response, as the case may be. "Where an assessee becomes aware that the matter being inquired into or investigat
Parliamentary Affairs Minister Kiren Rijiju on Saturday said that Finance Minister Nirmala Sitharaman will introduce the new Income Tax Bill, as cleared by a Select Committee, in the Lok Sabha on Monday. Rijiju's statement came in the wake of apprehensions voiced in a section of the media on the withdrawal of the Income Tax Bill from the Lok Sabha on Friday. "It is being presumed that there will be an absolutely new bill, ignoring the earlier bill for which a lot of work was done, and all the work done and time spent will go down," Rijiju said. The minister made it clear that the apprehensions were ill founded as the new bill to be introduced will incorporate all the changes which have been suggested by the Select Committee and which have been accepted by the government. Rijiju said it was a normal parliamentary procedure when the amendments to a bill already introduced in the Lok Sabha are too many. The Select Committee of the Lok Sabha, chaired by BJP member Baijayant Panda, mad
A Parliamentary panel examining the Income Tax Bill-2025 on Wednesday made 285 suggestions on the draft legislation that seeks to modernise and simplify the country's tax laws. The Select Committee of the Lok Sabha to examine the Income Tax Bill-2025, chaired by BJP leader Baijayant Panda, adopted the report on the draft law, which will be presented to the House on Monday, the first day of the Monsoon session. "We have made 285 suggestions to the Bill," a committee member said when asked about the report on the Income Tax Bill. The member said the report of the Select Committee will be presented to the Lok Sabha on Monday and the bill is likely to be passed in the Monsoon session. After the submission of the report by the Committee, the government will consider recommendations and if required, then will take approval from the Cabinet before moving the bill for consideration and passage in the Lok Sabha. The government aims to implement the new Income Tax law from April 1, ...