New Income Tax Bill Likely Today: 5 Key Points Taxpayers Must Know

The New Income Tax Bill is likely to be presented today in Parliament by Finance Minister Nirmala Sitharaman. After its introduction in Parliament, the bill will be referred to the Finance Standing Committee for a comprehensive examination. This bill aims to simplify the intricate Income Tax Act of 1961, currently comprising 298 sections. Since 1961, the Income Tax Act has seen numerous revisions, with annual adjustments made through the Union Budget. 

Finance Minister Nirmala Sitharaman announced during Budget 2025-26 that the New Income Tax Bill would be presented in the current parliamentary session. 

New Income Tax Bill: 5 Key Points Taxpayers Must Know   

• Following the budget announcement, the cabinet has approved a new Income Tax Bill. 
• The bill is set to be presented in the ongoing parliamentary session before February 13. 
• If passed, the new Income Tax Bill will reduce the number of sections by 30% and streamline the contents of the act by nearly half. 
• The proposed changes aim to significantly simplify the current Income Tax legislation. 
• The slab rates proposed in Budget 2025 will remain unchanged. 

Income Tax 

The Income Tax Act, established in 1961, was designed for an economy that has since undergone substantial evolution. With rapid technological advancements and changes in business practices, the government has recognized the need for a modernized tax framework. 

The new bill aims to simplify current tax laws, making them more transparent and user-friendly for taxpayers. This simplification should also streamline the compliance process, focusing on reducing paperwork, integrating digital platforms, and simplifying return filing mechanisms.