A new Income Tax Bill will be introduced in Parliament this week, which will replace the existing Income Tax Act of 1961. The new tax law is being brought to make the tax process simple and clear.
Union Finance Minister Nirmala Sitharaman made many important announcements while presenting the budget on February 1. The most important announcement among these was related to new income tax laws.
New bill will be introduced in Parliament this week
Sitharaman announced in her budget 2025 speech that the new Income Tax Bill will be introduced in Parliament “next” week. The Union Budget was presented on Saturday, February 1. This bill will replace the old law after almost 60 years.
Also Read Budget 2025: No tax on income up to ₹12 lakh in New Tax Regime? Here’s the catch! Budget 2025: Govt to table new income tax bill in parliament next week, says FM Nirmala Sitharaman Budget 2025: Govt may replace Income Tax Act, 1961 with THIS new law! What it means for taxpayers Income Tax Rules: 5 major changes in the last 6 months every taxpayer should know! Emphasis on simplicity and digital process in the new law
The new income tax law will be in simple language, which will make it easier for taxpayers to understand, as reports suggest. Along with this, digital process will be promoted, which will make tax filing completely digital. This can also reduce legal disputes. Apart from this, consideration can be given to combining assessment year and financial year to make a tax year.
Also read: Key changes in budget 2025 apart from tax-free 12 lakh income- Full details here
Key changes expected in the New Tax Bill:
The government said that the new law will replace the 63-year-old Income Tax Act, 1961, and changes in it will be made based on the feedback of taxpayers. The new tax regime was announced in 2020 under the 1961 law. The current law is in force from 1 April 1962.
Income Tax Bill: What is special?
Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal said that the government is trying to bring people into the new tax regime. Currently, about 75% of taxpayers are part of the new regime. After the income tax exemption, 95-97% of taxpayers will be included in the new regime.
» Read More
