Finance Minister Introduces Income Tax Bill, 2025

On 13th February 2025, Finance Minister introduced the Income Tax Bill, 2025, in Lok Sabha, urging its referral to a Select Committee.

The Bill aims to simplify tax terminology and replace the Income Tax Act of 1961.

Key Points

Introduction & Opposition: The Bill faced opposition at the introduction stage, but the House passed a motion by voice vote. The Lok Sabha will reconvene on March 10 for the second half of the Budget session.
Terminology Changes: The Bill replaces terms like "assessment year" and "previous year" with "tax year" for better clarity.
Structural Overhaul: The Income Tax Bill, 2025, expands to 536 sections from the existing 298 and increases schedules from 14 to 16.
Legislative Impact: Once enacted, it will replace the six-decade-old Income Tax Act, 1961, simplifying tax provisions and removing complex explanations.