Finance Minister introduced Income Tax Bill 2025
Income Tax Bill 2025: Union Finance Minister Nirmala Sitharaman on Thursday introduced a new income tax bill in the Lok Sabha of Parliament. The new Income Tax Bill was approved by the cabinet on 7 February last week. After appearing in the Lok Sabha today, the new Income Tax Bill will be sent to the Parliamentary Finance Standing Committee for further discussion. The Parliamentary Committee will give its recommendations on this bill, after which it will be sent to the cabinet once again. Following the recommendations of the Parliamentary Committee, it will once again need the cabinet approval. After getting the approval, this bill will be introduced in Parliament again.
New bill will replace Income Tax Act, 1961
The new Income Tax Bill 2025 is an important part of a major effort to improve India’s tax system. The aim of the new income tax bill is to improve the existing tax system as well as make it easier, well -organized and transparent. Currently, the system is functioning under the Rules and laws of the Income Tax Act, 1961 in India. After passing the new Economic Tax Bill, this Income Tax Act will be formed and the Income Tax Act will replace 1961. Income tax sections will change under the new rules. Along with this, the new bill provides for tax year by abolishing such assets year. The tax year will start from April 1 and will run till 31 March next year.
New Income Tax Act will be applicable from April 1, 2026 after passing
The proposed bill included an easy language for the convenience of taxpayers and the number of sections has been reduced as part of efforts to make the tax rules and its section easier. There is no mention of any new tax in the new bill. The new bill of 622 pages has 536 sections. Whereas, there are 823 pages in the current Income Tax Act, 64 years old. Income tax bill, 2025 once passes, then this Income Tax Act, 2025 will be formed. After which the current Income Tax Act, 1961 will be abolished and the Income Tax Act, 2025 will be implemented from April 1, 2026.
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