New Income Tax Bill 2025: Nirmala Sitharaman to Table Major Tax Reforms in Lok Sabha Today

Union Finance Minister Nirmala Sitharaman is set to introduce the much-anticipated New Income Tax Bill 2025 in the Lok Sabha today, marking a significant overhaul of India’s direct tax system. The Bill, which recently received approval from the Union Cabinet led by Prime Minister Narendra Modi, is expected to replace the existing Income Tax Act of 1961, which has been in force for over six decades.

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Key Highlights of the New Income Tax Bill 2025

The government has positioned the New Income Tax Bill as a reformative step aimed at simplifying tax laws, reducing litigation, and making the taxation system more transparent and accessible for citizens. The proposal was first discussed by Finance Minister Sitharaman during her Budget 2024 speech, where she emphasized the need for a more streamlined and taxpayer-friendly tax regime.

Following its introduction in Parliament, the Bill will be referred to a House panel for further examination and potential refinements before it is enacted into law.

Will the New Income Tax Bill Introduce Additional Taxes?

Amid widespread speculation regarding the imposition of new taxes, the central government has clarified that the New Income Tax Bill 2025 is not designed to introduce additional levies or cess. Instead, its primary objective is to restructure the existing tax framework to minimize ambiguities and legal disputes. Sources indicate that the Bill will focus on simplifying tax compliance, ensuring a less punitive approach for violations, and enhancing taxpayer convenience.

What Changes Can Taxpayers Expect?

One of the most notable aspects of the New Income Tax Bill 2025 is the emphasis on making the language of the tax framework more comprehensible for ordinary taxpayers. Currently, many taxpayers find it challenging to interpret complex tax laws, leading to inadvertent compliance issues. The revised tax code aims to eliminate such complexities, thereby fostering better adherence and awareness among individuals and businesses.

Additionally, the new legislation is expected to introduce amendments that will help reduce the volume of tax-related litigations, benefiting both taxpayers and regulatory authorities.

The Road Ahead: What’s Next for the Income Tax Bill?

Once introduced in the Lok Sabha, the New Income Tax Bill 2025 will undergo detailed scrutiny by a parliamentary committee before being finalized. Given the scale of its impact, experts anticipate extensive discussions and potential revisions before the final implementation.

The Modi government’s decision to revamp India’s tax structure comes at a crucial time, as it aligns with broader economic policies aimed at enhancing ease of doing business, promoting compliance, and fostering a pro-growth environment. With a clear focus on simplification and modernization, the Bill is expected to be a major milestone in India’s taxation history.