Thu Feb 13 06:35:10 UTC 2025: ## New Income Tax Bill Introduced in Indian Parliament

**New Delhi** – Finance Minister Nirmala Sitharaman today introduced the new Income Tax Bill, 2025, in the Lok Sabha, marking a significant step towards simplifying India’s tax system. The 622-page bill, comprising 23 chapters and 536 sections, aims to replace the cumbersome Income Tax Act of 1961.

While containing more sections than its predecessor (298), the new bill is significantly shorter, having reduced its page count from 880 to 622 through the removal of redundant provisions and simplified language. A key change is the introduction of a “tax year,” effective April 1, 2026, replacing the “assessment year” system. This change, along with a revised penalty structure and enhanced tax compliance measures, is intended to reduce tax disputes and litigation.

The bill includes provisions for taxing virtual digital assets (VDAs) like cryptocurrencies at a 30% rate, with a 1% tax on transactions, and no deductions or exemptions allowed except for the acquisition cost. Other changes include updates to TDS and presumptive taxation rates.

While the government highlights the simplification, some opposition members, such as Congress MP Manish Tewari, have expressed concerns about increased complexity. However, financial experts like Feroze Azeez, Deputy CEO at Anand Rathi Wealth Limited, lauded the move, stating that the clearer language and structure make the law more accessible to the average citizen.

The bill will now be sent to the Parliamentary Standing Committee on Finance for review before becoming law. The introduction of the bill comes on the final day of the first leg of the Parliament’s budget session, which will resume on March 10.

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