The process of major changes in Indian tax infrastructure is just going to start and the report of the Parliamentary Committee reviewing the new Income Tax Bill, 2025 (New Income Tax Bill) will be introduced in the Lok Sabha on Monday. This new bill will replace the six decade -old Income Tax Act, 1961 and will have fewer currents than before and it will be in a very easy language than before.
This new tax bill with 285 changes
According to the report published on Business Today, 31 -member Committee, led by BJP leader Baijayant Panda, was appointed by Lok Sabha Speaker Om Birla to investigate the new bill after being introduced by Finance Minister Nirmala Sitharaman on 13 February. The panel report has suggested 285 changes in the new tax bill. Now the review report related to this will be presented in the House for further action. If you look at the changes, then the New Tax Bill, which is half compared to the size of the Income Tax Act of 1961.
536 sections in the bill instead of 816
The new simplified bill has been designed to reduce litigation, especially in simple language. According to FAQ released by Income Tax Department, the number of words in this new bill has now come down to 2.6 lakhs in comparison to 5.12 lakhs of the current law. Apart from this, if we talk about the sections, then their number has also been reduced from the earlier 819 to 536, while the chapters have also been reduced from 47 to 23.
No assessment year … now tax year
The New Tax Bill-2025 has 57 tables to clarify tax benefits and TDS/TCS (TDS/TCS) rules, while in the current Act it was only 18. Along with this, 1,200 provisions and 900 explanations have been removed in it. Another major change is that this bill for taxpayers proposes to replace the concept of ‘assessment year’ and ‘previous year’ with a unified ‘tax year’.
Let us know that at present, tax payment on last year’s income is done in Assessment Year. For example, income earned in 2023-24 is taxed in 2024-25. It is worth noting that after the introduction of it by Nirmala Sitharaman, the 31 -member was sent to the Committee and now its review report will be presented on the first day of the monsoon session of Parliament of Parliament, which will start from July 21 to 21 August, 2025.
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