Income Tax Bill 2025 Introduced by Finance Minister

The Income Tax Bill 2025, introduced by Finance Minister Nirmala Sitharaman in the Lok Sabha, aims to simplify and modernize India's outdated 1961 tax framework. The bill reduces the number of sections from 819 to 536 and eliminates complex language and redundant provisions, introducing clearer terminology such as 'tax year' instead of 'assessment year.' It maintains existing tax rates while streamlining compliance and administration, and simplifies regulations for both businesses and non-profits. Despite opposition from some MPs, the bill's introduction was approved, and it is set for review by a select parliamentary committee. The bill will also include updated provisions for virtual digital assets and aims to reduce litigation by making the law easier to understand and navigate.