Cabinet clears new income tax bill, likely to be introduced in Lok Sabha next week: Sources

The Union Cabinet on Friday approved the new income tax bill, which is likely to be presented in the Lok Sabha on Monday, sources said. The bill is part of a broader push to reform the taxation system.

The new legislation, which is often referred to as the Direct Tax Code, is aimed at overhauling the existing tax structure,



making it more streamlined and transparent.

While presenting the Union Budget 2025, Finance Minister Nirmala Sitharaman announced the government’s intent to bring a new Direct Tax Code.

The bill is likely to be referred to the Standing Committee for further discussion and refinement of its provisions.