Thu Feb 13 11:09:59 UTC 2025: ## New Income Tax Bill Tabled in Lok Sabha, Aims for Simpler Tax System
**New Delhi** – Finance Minister Nirmala Sitharaman today tabled the new Income Tax Bill, 2025, in the Lok Sabha. The 622-page bill, replacing the 60-year-old Income Tax Act of 1961, aims to simplify the tax system and improve compliance. While no major structural changes to tax rates were introduced, the bill streamlines language, removes redundant provisions, and introduces a “tax year” effective April 1, 2026, replacing the “assessment year.”
The bill, comprising 23 chapters, 536 sections, and 16 schedules, is shorter than its predecessor despite an increased number of sections due to the simplification efforts. The government asserts that the changes will result in a more user-friendly and transparent tax code. Specific improvements include consolidating salary deductions and clarifying terminology.
Opposition members voiced their objections during the introduction stage, but the bill was passed by voice vote. It will now be sent to a Parliamentary Standing Committee for review before being presented to the Rajya Sabha. The Committee is expected to submit its report by the first day of the next Parliament session.
Industry experts, while welcoming the simplification efforts, note the absence of significant tax-related changes. The bill is available for download on the Lok Sabha website (sansad.in/ls/legislation/bills), although it may not be immediately available. The government is still accepting public suggestions for the bill. The Lok Sabha proceedings have been adjourned until March 10th, with the budget session resuming on April 4th.
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