New Income Tax Bill 2025 Released with 536 section & 16 Schedule
NEW INCOMETAX BILL, 2025
536 sections
16 Schedules
Same audit provisions
followed by Rules, Circulars, Notifications
The Union Cabinet approved the new Income Tax Bill on Friday, February 7, 2025. The new direct tax code is expected to be introduced in the Lok Sabha this week. The new tax bill is part of a larger effort to reform the country’s tax system and aims to overhaul the existing tax structure to make it more streamlined and transparent.
The Union Cabinet, chaired by Prime Minister Narendra Modi, had approved the new Income Tax bill last week, news agency PTI reported, citing sources. The bill will now be presented in the Parliament this week and sent to Parliament’s Standing Committee on Finance for further discussions, it added.
New I-T bill to be in Lok Sabha this week:
The new income tax bill will replace nearly sixty year old Income Tax Act 1961. The proposed bill will include simplified language to benefit taxpayers. Acording to a Business Standard report, the new I-T bill may reduce the number of sections by 25-30% in a bid to simplify tax rules and its clauses.
New Income: According to reports, the new Income Tax bill — promised by Union finance minister in her last year’s budget — will be tabled in parliament on Thursday. The bill is meant to simplify the language of the tax laws and it would later be sent to Parliament’s Standing Committee on Finance. It will not change the existing tax slabs or review the tax rebates given.
According to ANI, sources said simplification of the language will make the Act concise, clear, and easy to understand, which will reduce disputes, litigations, and provide greater tax certainty to taxpayers.
The CBDT had set up an internal committee to oversee the review. Also, 22 specialised sub-committees have been established to review the various aspects of the proposed law that would replace the six-decade-old law.
Ahead of drawing up the bill, the government had sought inputs from the people under four categories — simplification of language, litigation reduction, compliance reduction, and redundant/obsolete provisions.
The Copy of the Arrangemant of Clauses is as under :
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