Finance Minister Nirmala Sitharaman tabled the Income Tax Bill 2025 in the Lok Sabha on February 13, 2025. The new bill would replace the current Income Tax Act of 1961 and will take effect from April 1, 2026. The new Income Tax Bill has come after the review of the current Income Tax Act which was announced in July 2024.
The Income Tax Bill, 2025 gives tax officers powers to override the access code of computer systems and virtual digital space, including online trading and investment accounts as well as cloud servers, in search and seizure cases.
Baijayant Panda MP, Lok Sabha appointed as the Chairperson of the Select Committee of Lok Sabha to examine the Income-Tax Bill, 2025.
Utility to check section of Income-tax Act, 1961 (as amended by Finance (No. 2) Act, 2024) vis-a-vis corresponding Clause of Income-tax Bill, 2025
The New Income Tax Bill, 2025 set to take effect from April 1, 2026, represents a comprehensive overhaul of the existing tax framework. It consists of 536 clauses, 16 schedules, and 23 chapters, introducing significant changes to streamline and modernize tax administration. Key shifts include the introduction of a “tax year” concept, retention of the old tax regime with existing deductions, and the establishment of a new tax regime with updated rates. The bill delegates more powers…
The new Income Tax Bill, set to come into force on April 1, 2026, introduces a significant overhaul to India’s taxation framework, aiming for simplicity and clarity. The old Income Tax law, spanning over 800 pages with complex language and numerous provisions, has now been trimmed down to just 622 pages. Redundant sections have been eliminated, and fragmented provisions consolidated into more straightforward chapters. For example, provisions for non-profit organizations, previously scattered across multiple sections, are now unified into one chapter.
The Income Tax Department has introduced a tool to compare taxes under the new regime for financial years 2024-25 (FY25) and 2025-26 (FY26). The tool assists individuals assess which income tax regime offers greater benefits based on their income and deductions.
Finance Minister Nirmala Sitharaman will likely table the draft of the new income tax bill in the Parliament tomorrow i.e., on February 13, 2025. Many taxpayers want to know the expected date from which the new income tax law will take effect.
The Centre plans to table the new Income Tax Bill 2025 in the Parliament on February 13. The new bill, a copy of which has been published by the government, aims to simplify the terminology used in tax laws in India. It will make tax filing easier for the general public and may even encourage people to begin paying taxes.
A crispier and simplified Income Tax Bill 2025, having 536 sections, and 23 chapters running into 622 pages, is likely to be introduced in the Lok Sabha on Thursday (February 13, 2025).
