The New Income Tax Bill — to be called the Income-Tax Act, 2025, once passed – is set to be presented in Parliament on February 13, and aims to replace the six-decade-old Income Tax Act of 1961. It will extend to the whole of India and shall come into force on the 1st April, 2026.
The Bill aims to simplify and modernize India’s tax structure, making compliance easier for taxpayers while ensuring a fair and transparent system.
“Looking at the space occupied by the New Income Tax Bill, which is spread over 622 pages against the existing Income Tax Act which runs into 1647 pages, is itself a sign of attempt towards simplucation,” said Balwant Jain, a tax and investment expert.
The new bill runs into 536 sections against 298 existing sections. “It seems complicated provisions have been broken into small and simple sections for easy interpretation and implementation.
Against the existing 52 chapters, the bill has only 23 chapters, indicating that redundant chapters have been removed and cohesive matters have been clubbed together to make them simple,” added Jain.
Here is a look at some of the key provisions mentioned in the Bill: Charge of Income Tax
* Income-tax for any tax year shall be charged as per the provisions of this Act at the rate or rates which are enacted by a Central Act for such tax year.
* The charge of income-tax under sub-section (1) shall be on the total income of the tax year of every person as per the provisions of this Act.
* Income-tax shall also include any additional income-tax, by whatever name called, levied under this Act.
* If this Act provides that income-tax is to be charged in respect of income of a period other than the tax year, it shall be charged accordingly.
* For the income chargeable under sub-section (2), income-tax shall be deducted or collected at source or paid in advance as provided under this Act.
Scope of Total Income
(1) Subject to the provisions of this Act, the total income of any tax year of a person, who is a resident, includes all income from whatever source derived, which—
(a) is received or deemed to be received in India in that year by or on behalf of the person;
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