Thu Feb 13 12:40:00 UTC 2025: ## New Income Tax Bill Introduced in Parliament Amidst Opposition Backlash

**New Delhi** – Finance Minister Nirmala Sitharaman introduced the new Income Tax Bill, 2025, in Parliament on Thursday, aiming to simplify the complex 1961 Act. The bill, which reduces the number of sections from over 800 to 536, is designed around five core principles: Streamlined structure and language, Integrated and concise, Minimised litigation, Practical and transparent, Learn and adapt, and Efficient tax reforms (SIMPLE). The Ministry claims these principles will make the tax system easier for both citizens and enforcers.

However, the bill’s introduction was met with immediate opposition. Several Congress and RSP members staged a walkout, while others questioned the bill’s purported simplicity, arguing it is more complicated than the existing legislation. Criticisms included accusations of the bill being overly mechanical.

Despite the opposition’s concerns, the bill passed a voice vote and was subsequently referred to a Joint Parliamentary Committee (JPC) for further scrutiny. The JPC, to be headed by Lok Sabha Speaker Om Birla, is expected to submit its report by March 10th.

The new law, set to take effect from April 1, 2026, will not alter existing tax slabs. Key changes include the introduction of a “tax year” replacing the current “financial year” and “accounting year” system, and the removal of redundant sections. The bill also incorporates tables for clearer calculation of TDS, presumptive taxation, salaries, and bad debt deductions.

While the government highlights the simplification efforts, the opposition’s skepticism underscores the ongoing debate surrounding the bill’s efficacy and user-friendliness. The JPC’s review will be crucial in determining the final form of the new Income Tax Act.

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