The budget session of Parliament continues. Today i.e. on Thursday, action will be taken on the 10th day of the budget session. During this time, a new income tax bill will be introduced in the Lok Sabha, which is being awaited since the budget. This bill will replace the old income tax bill 1961.
Preparations for this bill have also been completed. The draft of this bill has also been released. The new income tax bill has 536 sections and 23 chapters. The 622 -page bill will replace the six -decade -old Income Tax Bill 1961. Today it will also be interesting to see the opposition’s response in Parliament.
After the bill is introduced in the Lok Sabha, it is likely to be sent to the Standing Committee of Parliament for detailed discussion. In the proposed law, new provisions have been made for early disposal of cases of tax disputes.
The number of chapters remained 23
The number of chapters in the new bill has been kept at 23 only. The number of pages has reduced considerably to 622, which is about half of the current heavy law, including amendments made in the last six decades. When the Income Tax Act 1961 was brought, it had 880 pages.
536 sections included in the new bill
The Income Tax Bill 2025 consists of 536 sections, which are more than 298 sections of the current Income Tax Act, 1961. The current law has 14 schedules which will increase to 16 in the new law.
This changed in new income tax bill
The new Income Tax bill has been replaced by the word ‘last year’ mentioned in the Income Tax Act, 1961. Also, the concept of the assessment year has been abolished.
The concept of last year changed
Currently, for the income earned in the previous year (2023–24), the tax is paid in the year (2024–25). The concept of last year and assessment year has been removed in this new bill and only tax year has been introduced under the simplified bill.
