The new Income Tax Bill will be introduced in the next session of Parliament, i.e., the monsoon session. This information was given by Finance Minister Nirmala Sitharaman in the Lok Sabha on Tuesday. The new Income Tax Bill-2025 will replace the six-decade-old Income Tax Act-1961. It will simplify direct tax laws, remove ambiguities, and reduce tax disputes.The Finance Minister said that the process of simplification is based on three main principles, including textual and structural simplification for clarity, no change in tax policy to ensure certainty and continuity, and no revision in tax rates to maintain predictability for taxpayers.Based on global best practice, the bill aims to bring ease of doing business by providing clarity in tax rules. The number of words in the new Income Tax Bill has been reduced to 259,676. This figure was at 5,12,535 in the old Income Tax Bill. The official government statement said that the number of chapters in the new Income Tax Bill has been reduced to 23, whereas in the old Income Tax Bill this number was 47. Apart from this, the number of sections has been reduced from 819 to 536.Industry experts say that the new Income Tax Bill-2025 will make the tax system in the country more transparent and, at the same time, it will increase the confidence of taxpayers.The government introduced the Income Tax Bill 2025 in the Lok Sabha on February 13, 2025, which will replace the existing Income Tax Act 1961. The bill aims to streamline the language and remove old provisions to increase efficiency while largely preserving the key provisions of the 1961 Act.Nirmala Sitharaman expressed hope that the bill can be brought for discussion in the upcoming monsoon session of Parliament. The Finance Minister introduced the Income Tax Bill, 2025, in the Lok Sabha on February 13. After this, Lok Sabha Speaker Om Birla was requested to send it to the Select Committee of the House.Lok Sabha Speaker Om Birla constituted a 31-member Select Committee on February 14 to consider this bill. Bharatiya Janata Party (BJP) MP Baijayant Panda has been made the chairman of this committee. This bill will replace the Income Tax Act, 1961.Special provisions will be added to resolve tax-related matters faster. A digital dispute resolution system will be implemented to save taxpayers from unnecessary legal complications.Talking on this topic, Tanishq Jaiswal, a tax analyst at Deloitte, said, “Earlier, the Income Tax Department had to seek Parliament’s approval to implement various tax schemes. But under the new bill, the Central Board of Direct Taxes (CBDT) has been empowered to independently launch tax schemes. This will reduce bureaucratic delays and make tax administration more effective. A new digital tax monitoring system will be implemented. This will make tax compliance easier, and fraud can be monitored. The new bill will make it easier for the common man to understand the provisions of income tax and will also enhance the financial literacy of the population. The proposed digital redressal mechanism to resolve complaints and discrepancies will also help avoid confusions related to the process, making the filing of income tax seamless.”.
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