Finance Minister Nirmala Sitharaman tabled the new Income Tax Bill 2025 in Lok Sabha on Thursday. The minister moved a motion to form a select committee on the bill, which was passed by the House.
The terms and conditions of the committee will be decided by the Speaker and the report must be prepared by March 10. The select committee will submit its report by the first day of the next session.
The new tax bill will replace the Income Tax Act 1961, effective April 2026.
Substantial changes have been made to the Income Tax Act, 1961 with this Bill, which will bring the number of section down to 536 from 819, Sitharaman said in the Lok Sabha.
Simplification of income tax laws is a good attempt, said Pranav Sayta, international tax and transaction services leader at EY India.
While there are no significant changes in assessment proceedings, the new income tax bill is more or less in line with expectations, he said.
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