Income Tax Bill 2025 Tabled in Parliament: Aims to Simplify IT Act, 1961

Last updated: 14 February 2025

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A new Income Tax Bill, 2025, has been presented in Parliament with the primary goal of simplifying the existing Income-tax Act, 1961. The bill focuses on making the language and structure of the tax law clearer and more accessible, without introducing any significant policy changes or altering tax rates. This simplification was achieved through extensive stakeholder consultation and by studying international models, resulting in a significantly reduced and reorganised Act.

Income-tax Bill, 2025, tabled in Parliament towards achieving comprehensive simplification of the Income-tax Act, 1961 The Income-tax Bill, 2025 was tabled in Parliament today, marking a significant step toward simplifying the language and structure of the Income-tax Act, 1961. The simplification exercise was guided by three core principles: Textual and structural simplification for improved clarity and coherence. No major tax policy changes to ensure continuity and certainty. No modifi

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FAQ :

The main aim of the Income Tax Bill 2025 is to achieve a comprehensive simplification of the Income-tax Act, 1961, by making its language and structure clearer and more coherent.

No, the bill explicitly states that there are no major tax policy changes and no modifications of tax rates, ensuring continuity and predictability for taxpayers.

The simplification involves eliminating intricate language, removing redundant provisions, and reorganising sections logically. It also uses tables and formulae for improved readability.

Yes, the government engaged in widespread stakeholder engagement, consulting taxpayers, businesses, industry associations, and professional bodies, and incorporated relevant suggestions.

The proposed bill significantly reduces the Act's volume, cutting down words from 512,535 to 259,676, chapters from 47 to 23, and sections from 819 to 536.

Yes, simplification models from Australia and the UK were studied to incorporate best practices into the new bill.

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CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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