US EditionParliament Approves New Income Tax Bill 2025, Set to Replace 1961 Act After Six Decades
DELHI, INDIA, AUG 11 – The revised bill incorporates 285 committee recommendations to simplify tax laws and cut the statute length by about 50%, aiming to reduce disputes and ease compliance for taxpayers.
- On August 11, 2025, the Lok Sabha passed the Income-Tax Bill, 2025, incorporating nearly all recommendations of the Parliamentary Select Committee.
- Amid concerns over convoluted tax rules, the government withdrew the initial draft, as committee members said the Income Tax Act of 1961’s complexity left ordinary taxpayers struggling.
- Amid simplification efforts, digital processes will handle notices, assessments, and grievance redressals fully digitally under faceless assessments, with the law consolidating into 23 chapters and 536 sections.
- Despite protests, opposition benches were near empty during the passage, and the House also approved the Taxation Laws Bill, 2025.
- With an eye on future clarity, the bill will take effect from April 1, 2026, embracing a digital approach to benefit taxpayers and minimize litigation.
20 Articles
20 Articles
Parliament approves new Income Tax Bill 2025, set to replace 1961 Act after six decades
India's Parliament has passed the Income Tax Bill, 2025, set to replace the 1961 Act. The new bill aims to modernize tax laws without changing rates, simplifying terms and reducing complexity. It will likely take effect on April 1, 2026, after receiving presidential assent.
New Income Tax bill clears in Lok Sabha: What are the big changes?
The Income-Tax (No.2) Bill, 2025 will take effect from April 1, 2026. It begins by making the language easier for the layman to read. The government had withdrawn the earlier draft to incorporate the changes made by the Select Committee, which had suggested a slew of changes including allowing refunds even if the Income Tax Return was filed after the due date and no penalty on late filing of tax deducted at source (TDS). Those who have to pay no…
Lok Sabha Passes Critical Taxation Bills Amid Opposition Protests
The Lok Sabha passed two significant taxation bills: the Income-Tax (No 2) Bill, and the Taxation Laws (Amendment) Bill amidst opposition protests. These bills, introduced by Finance Minister Nirmala Sitharaman, include major amendments to improve the Income Tax Act, 1961, and provide tax exemptions under the Unified Pension Scheme.
Modified Income Tax Bill 2025 passed in Lok Sabha: Here's all you need to know
Lok Sabha on Monday passed modified Income Tax Bill in the Lok Sabha. The modified Income Tax Bill, introduced by Union Finance Minister Nirmala Sitharaman, incorporates most of the recommendations made by the Select Committee, chaired by BJP MP Baijayant Jay Panda. The Select Committee had made 285 suggestions to the Income Tax Bill. Introducing The Income-Tax (No.2) Bill, 2025, Sitharaman said the bill seeks to consolidate and amend the law re…
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