Thu Feb 13 02:49:59 UTC 2025: ## New Income Tax Bill Aims to Simplify Tax Laws, Reduce Litigation

**New Delhi, February 12, 2025** – Finance Minister Nirmala Sitharaman is set to introduce a landmark new Income Tax Bill in Parliament on Thursday, February 13. The bill aims to drastically simplify India’s complex tax code, reducing the burden on both taxpayers and tax authorities.

The current Income Tax Act of 1961, spanning over 880 pages, has become notoriously cumbersome due to numerous amendments over the years. The new bill, however, will comprise only 622 pages, approximately half the length of its predecessor. This reduction is achieved by streamlining the language, removing redundant provisions, and eliminating legal jargon. The number of sections will be reduced from 819 to approximately 536.

Key changes include replacing the confusing terms “Previous Year” and “Assessment Year” with a simpler “Tax Year,” while retaining the existing April 1 to March 31 financial year. The bill also incorporates tables, examples, and formulas to improve clarity.

According to the Finance Ministry, the new bill maintains the principle of “Nyaya” (justice) and will reduce legal complexities, making the system more user-friendly. It is expected to extend the time limit for filing tax returns and strengthen measures against tax evasion. Furthermore, the phasing out of redundant exemptions aims to create a more equitable tax system and reduce compliance burdens for businesses and individuals.

Experts anticipate the bill will lead to reduced litigation and greater predictability in tax assessments, fostering a more stable and attractive investment climate in India. The increased use of technology, including AI-driven scrutiny and digital filings, is also expected to improve efficiency and curb tax evasion. The simplified framework is projected to encourage investment and economic growth by eliminating distortions caused by complex tax incentives.

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