Wed Feb 12 15:20:00 UTC 2025: ## Simplified Income Tax Bill Set for Parliament Debut

**New Delhi, [Date]** – A significantly streamlined Income Tax Bill, 2025, is poised for introduction in Parliament on Thursday. The bill aims to replace the cumbersome 60-year-old Income Tax Act of 1961, simplifying the language and structure without introducing new taxes.

The new bill, comprising 536 sections across 622 pages, reduces the volume considerably from the existing Act’s 880 pages. Key changes include replacing the confusing “previous year” and “assessment year” terminology with a single “tax year,” eliminating redundant sections (such as those relating to Fringe Benefit Tax), and removing complex phrasing like “notwithstanding.” The bill incorporates a “Taxpayer’s Charter” outlining taxpayer rights and obligations and utilizes tables and formulas for improved readability.

While the number of sections has increased slightly from 298 to 536, the overall simplification is expected to reduce compliance costs and improve tax administration efficiency. The bill incorporates judicial pronouncements from the past six decades and clarifies the treatment of employee stock options (ESOPs). The government received over 6,500 suggestions from stakeholders during the review process.

Once introduced in the Lok Sabha, the bill will be referred to the Parliamentary Standing Committee on Finance for further review. The new law is slated to come into effect on April 1, 2026. Finance Minister Nirmala Sitharaman, who initially announced the review in July 2024, confirmed the bill’s introduction during the current parliamentary session. Tax experts anticipate significant changes in reporting forms and utilities following the bill’s notification.

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