New Income Tax Bill set to be introduced in Lok Sabha tomorrow

Union Finance Minister Nirmala Sitharaman is set to introduce the New Income Tax Bill, 2025, in the Lok Sabha on Thursday (February 13). The bill aims to consolidate and amend the existing income-tax laws inorder to bring potential changes to the country's tax framework.

The proposed legislation is expected to streamline tax regulations, enhance compliance, and possibly introduce new provisions in line with evolving economic policies. The move comes as part of the government's broader efforts to modernise and simplify the taxation system.

Once introduced in the Lok Sabha, the bill will be sent to the Parliamentary Standing Committee on Finance for further deliberations. The Statement of Objects and Reasons of the new I-T Bill said that the Income-tax Act passed in 1961 has been subjected to numerous



amendments since its passage 60 years ago. Tax administrators, practitioners and taxpayers had also raised concerns about the complicated provisions and structure of the Income-tax Act. Therefore, the government in the budget in July 2024 announced that a time-bound comprehensive review of the Income-tax Act, 1961 would be undertaken to make the Act concise, lucid, easy to read and understand.

The Income Tax Bill, 2025 comprises 536 sections, higher than 298 sections of the current Income-Tax Act, 1961. The existing law has 14 schedules which will increase to 16 in the new legislation. Finance Minister Nirmala Sitharaman had announced in Budget 2025-26 that the new tax bill will be introduced during the ongoing session of Parliament. Sitharaman had first announced a comprehensive review of the Income-tax Act, 1961 in July 2024 Budget.