Govt tables New Income Tax Bill 2025 in Lok Sabha

Finance minister Nirmala Sitharaman tabled the New Income Tax Bill in Lok Sabha, the lower House of Parliament, on Thursday.

The revised bill, stretching across 622 pages with 536 clauses, replaces the 823-page law enacted in 1961.

The new bill adopts “tax year” in place of “assessment year” to align with the financial year and is slated for review by a joint parliamentary committee with findings to be reported at the start of the budget session’s second half on 10 March.

Crafted in clearer language, the bill features 252,859 fewer words than its predecessor, consolidating its structure into 23 chapters and 536 sections from the former 47 chapters and 819 sections.

It also introduces 39 new tables, bringing the total to 57, alongside 46 formulas.

Consultations during the drafting included feedback from taxpayers, businesses, industry associations, and professional bodies, incorporating relevant suggestions from 20,976 online submissions.

Drawing on simplification models from Australia and the UK, the bill adheres to principles of textual clarity, structural simplicity, and continuity in tax policy without altering rates, aiming to maintain predictability and facilitate ease of reference for taxpayers.