The new Income Tax Bill 2025 will be taken up for discussion during the upcoming monsoon session of Parliament, Finance Minister Nirmala Sitharaman confirmed on Tuesday. The bill was earlier introduced in the Lok Sabha on February 13 and is currently being reviewed by a Select Committee.
What Did the Finance Minister Say?
While replying to the Finance Bill 2025 discussions in the Lok Sabha, Finance Minister Sitharaman said, “We will take it (new income tax bill) up in the monsoon session.” She added that the Select Committee reviewing the bill has been asked to submit its report by the first day of the next session.
The monsoon session usually begins in July and continues until August, which is when this important bill will be tabled again for debate and possible approval.
What’s New in the Income Tax Bill 2025?
The proposed bill aims to replace the existing Income Tax Act of 1961 with a simpler and cleaner version of the law. According to the Income Tax Department, the goal of this new bill is to bring tax certainty and reduce confusion, litigation, and frequent reinterpretations.
Here are some key features of the new Income Tax Bill:
- Word count reduced from 5.12 lakh to 2.6 lakh
- Number of sections cut down from 819 to 536
- Chapters halved from 47 to 23
- Provisos reduced by 1,200 and explanations by 900
- Number of tables increased from 18 to 57
Why Is the New Bill Important?
The current Income Tax Act has been in place since 1961. Over the decades, many amendments, explanations, and clauses have been added, making the law complex and sometimes hard to interpret. This has led to numerous tax disputes and court cases.
The new bill is expected to provide clarity, ensure smooth implementation, and help both taxpayers and tax officers understand the law better. A simplified law will also reduce errors and confusion during tax filing.
What Happens Next?
Once the Select Committee submits its report, the bill will be presented for discussion during the monsoon session of Parliament. If approved, the new Income Tax Bill could bring major changes to the way taxes are calculated and managed in India.
The new Income Tax Bill 2025 marks a major step towards simplifying India’s tax system. With fewer sections, reduced legal jargon, and more user-friendly structure, the bill is designed to help taxpayers avoid confusion and reduce legal disputes.
It is expected to come up for detailed discussion in the July-August monsoon session, once the Select Committee submits its recommendations. If passed, it could lead to a more transparent and predictable tax environment for everyone.
