The wait is finally over. There was a possibility that the new income tax bill would be introduced in the Lok Sabha on Monday. But it didn't. Union Finance Minister Nirmala Sitharaman introduced the Income Tax Bill in the Lok Sabha on Thursday. The Centre wants to replace the Income Tax Act, 1961. If the Income Tax Act 2025 bill becomes law, the existing law of 1961 will be repealed.
The bill was introduced by Nirmala Sitharaman and passed by a voice vote. However, the new bill will be sent to the parliamentary standing for further discussion. It will then be submitted. The new Income Tax Bill is expected to come into effect from April 1, 2026.
While introducing the bill in Parliament, Union Finance Minister said, "Sections of the Income Tax Act have been reduced from 819 to 536." According to the Finance Ministry, the income tax rules are easier for the common man to understand than before. However, in addition to reducing the income tax section, another set of changes has been made in this new law.
According to sources, if the bill becomes law, filing tax returns will be easier. However, this new law does not mean that there will be any change in the income tax slab. Rather, the general public's perception of slabs will become clearer with the help of this law.
At present, income tax returns are filed on the basis of 'assessment year' and 'previous year.'. However, the government has talked about introducing a 'tax year' in the new bill. According to sources, this tax year is being brought in line with the financial year.
Many times it has been seen that many taxpayers fall into legal battles over income tax without understanding. Changes have been made in the new bill to solve this problem. Major steps have been taken to reduce legal conflicts.
While presenting the budget on February 1, Union Finance Minister Nirmala Sitharaman said that the government will introduce a new income tax bill in Parliament next week. Where the existing Income Tax Act, 1961, in the country will be greatly simplified. Economic experts believe that the new income tax bill will reduce the complexity of at least 60 percent of the existing law.
