Presenting the Union Budget 2025-26 on February 1, Finance Minister Nirmala Sitharaman announced the government’s plan to introduce the new Income Tax Bill in Parliament. In her budget speech last Saturday, the FM said the “clear and direct” Income Tax Bill will be introduced “next” week. But now media reports are suggesting that the new tax Bill may be tabled in Parliament on Monday as before this it will go before the Union Cabinet for approval tomorrow, i.e., Friday.
What happens once the new Income Tax Bill is tabled in Parliament?
After the Union Cabinet clears tomorrow the Income Tax Bill, it will be introduced in the Lok Sabha on Monday. This Bill being a Finance Bill needs to be submitted in the Lok Sabha only, not the Rajya Sabha. The Rajya Sabha, however, can recommend amendments to the Bill. And it is up to the Lok Sabha whether to accept the recommendations or not.
Also read: Budget 2025: New capital gains tax rules – latest LTCG and STCG rates revealed!
Also Read New Income Tax Bill This Week: New tax law to change taxation rates? Get ready for THESE big changes Key changes in budget 2025 apart from tax-free 12 lakh income- Full details here Budget 2025: New vs Old Tax regime – Which one works best for you? Budget 2025: Govt may replace Income Tax Act, 1961 with THIS new law! What it means for taxpayers What is the objective of bringing the new tax Bill?
The new income tax law will replace the existing Income Tax Act of 1961. The tax Bill is being brought to make the tax process simple and clear.
The new income tax law will be in simple language which will help taxpayers and tax experts under the provisions better. Also, digital processes 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 the assessment year and financial year to make a tax year.
Income Tax Bill: What is special?
In his recent media interviews post budget, Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal clearly said that the aim is to bring people into the new tax regime.
Currently, about 75% of taxpayers are part of the new regime and after the latest budget announcements for taxpayers,
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