New Income Tax Bill to be introduced in monsoon session, says FM Sitharaman

The new Income Tax Bill will be discussed in the Parliament’s monsoon session, Finance Minister Nirmala Sitharaman told Lok Sabha on Tuesday.

The Income-tax Bill of 2025, which will replace the six-decade-old Income Tax Act of 1961, will make direct tax laws simple to understand, remove ambiguities, and reduce tax



disputes.

The simplification exercise was guided by three core principles, which include textual and structural simplification for improved clarity and coherence, ensuring continuity and certainty with no major tax policy changes and no modifications of tax rates to preserve predictability for taxpayers, the Finance Ministry said.