New Delhi, February 13 – Finance Minister Nirmala Sitharaman on Thursday introduced the Income Tax Bill, 2025, in the Lok Sabha, seeking to replace the six-decade-old Income Tax Act of 1961. She requested Lok Sabha Speaker Om Birla to refer the bill to the Parliamentary Standing Committee for further deliberations.
The bill, approved by the Union Cabinet on February 7, aims to simplify direct tax laws, enhance clarity, and reduce litigation without imposing any additional tax burden. Unlike the previous tax law, the new bill is designed to be easier to read and understand, eliminating complex provisions and unnecessary explanations.
During the session, some opposition members, including TMC MP Saugata Roy, raised objections against the introduction of the bill. However, Sitharaman proceeded with its presentation, emphasizing that the legislation seeks to make tax compliance more transparent and accessible for taxpayers.
The announcement of the new tax law was made in Sitharaman’s Budget 2025 speech on February 1. It is expected to remove outdated amendments and provisions, ensuring that individuals can comprehend tax regulations without relying on experts. The bill also aligns with the government’s broader tax reforms agenda, streamlining direct tax policies for better governance and reduced disputes.
