Thu Feb 13 05:21:37 UTC 2025: ## New Income Tax Bill to Replace Six-Decade-Old Act
**New Delhi, February 12, 2025** – A significantly revised Income Tax Bill, 2025, is set to be introduced in the Lok Sabha on Thursday. The 622-page bill, containing 536 sections and 23 chapters, will replace the 1961 Income Tax Act, streamlining tax administration and reducing complexities.
The new bill simplifies the tax year structure, eliminating the “previous year” and “assessment year” concepts. While the number of sections has increased from 298 to 536, and schedules from 14 to 16, the overall page count has been drastically reduced from the original 880 pages, reflecting a more concise and organized structure.
According to Rajat Mohan, Senior Partner at AMRG & Associates, the increased number of sections reflects a more structured approach, incorporating modern compliance mechanisms and digital governance. The bill also offers clearer tax treatment on stock options (ESOPs) and incorporates judicial pronouncements from the past 60 years.
A key change grants the Central Board of Direct Taxes (CBDT) greater autonomy to introduce tax schemes and compliance frameworks without needing parliamentary approval for every procedural matter, thereby reducing bureaucratic delays. The CBDT can now independently frame tax administration rules and implement digital tax monitoring systems.
The bill’s development involved extensive public consultation, with over 6,500 suggestions received from stakeholders. The government aims to reduce tax disputes and provide greater certainty for taxpayers. Following its introduction, the bill will be sent to a parliamentary standing committee for review. Finance Minister Nirmala Sitharaman first announced the comprehensive review of the 1961 Act in July 2024.
First Piper 