Thu Feb 13 07:50:12 UTC 2025: ## New Income Tax Bill Tabled in Lok Sabha: Simpler Language, No Major Tax Changes

**New Delhi, [Date]** – Finance Minister Nirmala Sitharaman today tabled the much-anticipated new Income Tax Bill, 2025, in the Lok Sabha. The 622-page bill aims to simplify India’s tax code, replacing the 60-year-old Income Tax Act of 1961, with effect from April 1, 2026.

While the bill introduces no significant tax rate changes, it streamlines the language and removes outdated provisions. The revised tax slabs remain largely unchanged but the exemption limit has increased. Individuals earning ₹12 lakh or less annually will not be liable to pay income tax. The new bill includes a standard deduction of ₹75,000.

The bill boasts a more concise structure, with 536 sections across 23 chapters and 16 schedules, compared to the older act’s 298 sections and 14 schedules spread across 880 pages. A key change is the introduction of a “tax year,” aligning the tax calculation period with the income earning period, starting April 1, 2026. The bill also includes provisions for virtual digital assets, clarifying their tax treatment. Specific changes also include strengthened GAAR and presumptive taxes for non-residents.

Despite the government’s emphasis on simplification, some opposition members have voiced concerns about increased complexity. Industry experts, however, largely welcome the move, anticipating increased tax compliance due to the clearer language. The bill will now be sent to a Parliamentary Standing Committee for review before becoming law. The introduction of the bill followed earlier debates regarding the Waqf Bill in the Rajya Sabha.

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