Fri Feb 07 15:55:56 UTC 2025: ## New Income Tax Bill Approved by Union Cabinet

**New Delhi, February 7, 2025** – The Union Cabinet today approved a new income tax bill, paving the way for a significant overhaul of India’s direct tax laws. The bill, which aims to replace the six-decade-old Income-Tax Act of 1961, will be introduced in Parliament next week.

Sources confirm the new legislation prioritizes simplicity and clarity, aiming to reduce ambiguity and minimize tax disputes. It will reportedly avoid complex provisos and lengthy sentences, making it easier for taxpayers to understand. The bill will be sent to Parliament’s Standing Committee on Finance for further review.

Finance Minister Nirmala Sitharaman first announced the comprehensive review of the Income-Tax Act in July 2024. This followed the formation of an internal committee and 22 specialized sub-committees within the Central Board of Direct Taxes (CBDT) to streamline the Act. Over 6,500 suggestions from stakeholders were incorporated into the new bill.

The government asserts the new bill will not impose any new tax burdens. The first leg of the ongoing budget session concludes on February 13th, with the session resuming on March 10th and concluding April 4th. The introduction of the new bill fulfills a promise made by Ms. Sitharaman during the Budget 2025-26 announcement.

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