New Delhi: New Delhi, March 25, 2025 – In a significant development for India’s tax landscape, Finance Minister Nirmala Sitharaman announced on Tuesday that the much-anticipated new Income Tax Bill will be tabled for discussion during the upcoming monsoon session of Parliament.
Speaking during the Finance Bill 2025 discussions in the Lok Sabha, Sitharaman revealed that the Select Committee is currently reviewing the bill, which was introduced on February 13. The committee is expected to submit its report by the first day of the next parliamentary session, paving the way for the bill’s consideration in the monsoon session, typically held from July to August.
The proposed legislation, aimed at simplifying India’s tax code, is a streamlined version of the 1961 Income Tax Act. With half the word count of its predecessor, the new bill boasts 536 sections compared to the current 819, and reduces the number of chapters from 47 to 23. The Income Tax Department has emphasized that this condensed format will help minimize litigation and provide greater tax certainty.
Notably, the bill introduces 57 tables, a significant increase from the 18 in the existing Act, while eliminating 1,200 provisos and 900 explanations. This restructuring is part of the government’s efforts to make the tax code more accessible and easier to navigate for both taxpayers and administrators.
As the monsoon session approaches, all eyes will be on the Parliament to see how this landmark piece of legislation will shape India’s future tax policy.
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