Union Finance Minister Nirmala Sitharaman introduced the Income Tax Bill, 2025, in the Lok Sabha on Thursday and urged the House to refer it to the Select Committee. Despite opposition protests, the bill was approved by voice vote for introduction. This legislation aims to replace the six-decade-old Income Tax Act, 1961, which has undergone multiple complex amendments over the years.
The Finance Minister highlighted that the new bill eliminates technical terms like “Assessment Year” (AY) and “Previous Year”, replacing them with the simpler “Tax Year” concept. This move is expected to simplify and streamline the tax process.
The new bill consists of 536 sections and 23 chapters, spanning 622 pages. The government’s objective behind this legislation is to make tax laws more transparent and easier to understand. After receiving approval from the Union Cabinet, the bill was formally introduced in Parliament.
