New Delhi:
The government may introduce a new Income Tax Bill in the upcoming budget session of Parliament (Budget Session 2025). Its objective is to make the existing Income Tax Act, 1961 simple, clear and understandable. In this new law, the number of pages can be reduced by about 60%.

Finance Minister Nirmala Sitharaman had announced a comprehensive review of the six decade old Income Tax Act within six months in the budget speech of July 2024. CBDT (Central Board of Direct Taxes) has formed an internal committee to oversee this work. For this, 22 sub-committees have been formed to consider various aspects of the law.

The purpose of this new change is to make the tax system easier for taxpayers, simplify the existing rules, reduce litigation, remove unnecessary provisions and bring more clarity regarding tax.

budget session dates

The budget session will run from January 31 to April 4, 2025. The first part will run from January 31 to February 13, in which President Draupadi Murmu will address the joint session of Parliament and after that the Economic Survey will be presented. The budget for the financial year 2025-26 (Union Budget 2025) will be presented on 1 February. At the same time, the second part of the budget session will be from March 10 to April 4.

When will the new income tax law come?

According to sources, the new income tax law can be introduced in the second phase of the budget session of Parliament. This will not just be an amendment to the existing law, but a new law will be brought. At present its draft is under review by the Law Ministry.

A source said, “The new income tax law will be introduced in the budget session of Parliament. This will be a new law, not an amendment to the existing law. “At present, the draft law is being considered by the Law Ministry and it may be introduced in Parliament in the second half of the budget session.”

What changes will there be from the new income tax law?

• The law will be written in simple language so that common people can easily understand it.
• Unnecessary and obsolete provisions will be removed.
• Tax disputes will be reduced.
• Compliance will be made easier for taxpayers.
• For this, the Income Tax Department has received 6,500 suggestions from the public and industry for these reforms.
• The government has focused on four key areas to seek suggestions from the general public – simplification of language, reduction in litigation, relief in compliance and removal of obsolete provisions.

How big can the change be?

The current Income Tax Act, 1961 consists of about 298 sections and 23 chapters, which deal with personal income tax, corporate tax, gift tax, property tax, securities transaction tax. , let’s cover.

According to sources, the government’s aim in the new law is to remove the complexities of the existing law and reduce the pages and sections by 60%, so that it can be made more simple and effective. The Finance Minister had said that the new law will bring more certainty for taxpayers and will also reduce the demand entangled in litigation. Due to this, taxpayers are expected to get relief.

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