The government will present the Income Tax Bill 2025 (Income Tax Law) in the Lok Sabha on 13 February. The government has listed a bill to introduce a bill to amend the Income Tax law on Thursday in the Lok Sabha. According to the PTI news, according to the agenda aired by the Lok Sabha Secretariat on Wednesday, Finance Minister Nirmala Sitharaman will introduce the Income Tax Bill, 2025.
These term will change
According to the news, the much awaited bill will replace the tax assessment (assessment year) and the previous year (Previous Year) from the tax year, which is a step to simplify the language as well as remove the provisions and clarifications. There is no new tax in the bill. In this, only the provisions provided in the Income Tax Act, 1961 have been kept together. It has 536 sections, 23 chapters and 16 schedules in just 622 pages. While the Act of 1961 had 298 sections, 23 chapters and 14 schedules.
Will be applicable from the beginning of April 2026!
The new Income Tax Bill will replace the six -decade -old Income Tax Act 1964. It has become very large due to modifications in the last few years. The new bill does not impose any new tax, but simplifies the language of the current Income Tax Act. The new law is expected to be implemented from the beginning of April 2026.
This may change
The tax year will replace the 12 -month duration evaluation and the current concept of the previous year starting from April 1. At present, the income earned in the last year is being evaluated in the ‘evaluation year’. For example, the income earned between April 2024 and March 2025 is now evaluated in FY 2025-26. According to the news, the new income tax bill includes taxpayer charter, which will tell the rights and obligations of taxpayers. Cash payments etc. have been placed in one place instead of being kept in different sections/rules after not taking standard deductions, gratuity, leave from salary.
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