FM Nirmala Sitharaman to unveil the New Income Tax Bill in Lok Sabha Today:

FM Nirmala Sitharaman to unveil the New Income Tax Bill in Lok Sabha Today FM Nirmala Sitharaman will present a new, streamlined version of the current Income Tax Act, 1961, known as the new Income Tax Bill, in parliament today. FM Sitharaman announced this in her Budget 2025 speech on February 1, 2025. The income tax bill will be a key step towards drastically simplifying the Income Tax Act, which is 800 pages long, complex, and 64 years old Act. The new income tax bill 2025 seeks to simplify and considerably reform the current income tax act 1961, which has frequently been viewed as burdensome, complex, and difficult to understand by common taxpayers. This has resulted in various tax-related litigations in the past, which the new bill hopes to prevent by making the law easier to understand for taxpayers. According to sources, the new income tax bill is expected to comprise 23 chapters, 16 schedules, and approximately 536 clauses. This contrasts sharply with the previous act, which contained approximately 298 sections. However, experts point out that the number of chapters in both the current income tax act and the upcoming income tax bill remains the same at 23.

Parliametary Session Date and Time

Finance Minister will submit the new income tax bill today, that is, on Thursday, February 13, 2025. Generally, parliamentary proceedings begin at 11 a.m., but no exact time has been notified for the introduction of the income tax bill thus far. The budget session of the parliament began on January 31st, 2025, with the presentation of the Economic Survey and the Union Budget, and will continue until April 2025.

Implementation of New Income Tax Bill

According to sources, the new income tax bill will take effect on April 1, 2026. Following today's presentation, the bill will be forwarded to parliament's standing finance committee for review.