The Income-tax Bill, 2025 and The Taxation Laws (Amendment) Bill, 2025 have received the President's assent on August 21, 2025. With this, both legislations have officially become law.
The passage of these two crucial tax legislations marks a significant milestone in the government's efforts to streamline, modernize and simplify India's direct tax regime.
I. The Income Tax Bill, 2025
Expected to redefine the structure of direct taxation in India, this Bill replaces the existing framework with a more contemporary and transparent system. It seeks to improve compliance, reduce litigation, and create a more taxpayer-friendly ecosystem.
Click here to know more in detail about New Income Tax Bill 2025!
II. The Taxation Laws (Amendment) Bill, 2025
The Taxation Laws (Amendment) Bill, 2025, introduced in Lok Sabha by FM Nirmala Sitharaman, proposes tax exemptions for Unified Pension Scheme payouts, enhances standard deduction and refines search case block assessments.
Click here to know more in detail about Taxation Laws (Amendment) Bill 2025!
Both legislations fall under the Ministry of Finance and are part of the government's broader tax reform agenda. With the President's assent, the reforms are now set to be implemented, impacting individuals, corporates and other stakeholders in the Indian economy.
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Experts believe these changes could significantly enhance ease of doing business, while also boosting investor confidence in India's taxation framework.
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