Today new income tax bill is introduced in Lok Sabha, Finance Minister will disclose changes

New Delhi

Under the process of change in Indian Tax Infrastructure, the new Income Tax Bill, 2025 (New Income Tax Bill) will be introduced in the Lok Sabha today with all the amendments. Finance Minister Nirmala Sitharaman will present it. This new bill will include 285 amendments suggested by the Select Committee. These amendments were approved by the Pravar Committee headed by BJP MP Baijayant Panda. Explain that this new bill will replace the Income Tax Act, 1961, about 63 years old. Let’s know how and how different this new bill is from that…

285 recommendations, 32 major changes
Finance Minister Nirmala Sitharaman said that there are many changes in the new Income Tax Bill, including technical reforms and better cross-referenceing. In response to the criticism being done on the time and hard work spent on its draft, Union Parliamentary Affairs Minister Kiran Rijiju said that the work done before it will not go in vain. Explain that a major reason for the delay in this proposal was the extensive suggestions of the Parliamentary Committee headed by BJP MP Baijayant Panda.

Union Minister Rijiju said that when a parliamentary committee presents a report with several proposed amendments and many of them are accepted, the standard process is that the original bill is withdrawn and its revised version is presented. He said that three different proposals are required for each amendment, which is impractical when more than 285 changes are recommended, including 32 major changes. He said, “The purpose of withdrawing and re -introducing the bill is to ensure time savings, legislative clarity and efficiency.”

Simple and low streams compared to before
It is worth noting that the Income Tax Bill 2025 was introduced in the Lok Sabha on 13 February 2025 and after this a 31 -member Select Committee was constituted under the chairmanship of BJP MP Baijayant Panda. It gave 285 suggestions and presented its report on 21 July 2025 last month. Union Finance Minister Nirmala Sitharaman is now going to introduce the revised New Tax Bill, 2025, which will replace the Income Tax Bill of 1961. It will have fewer currents than before and it will be in very easy language than before.

The provisions that are expected to be included in the new bill include except for social services, limited to pure religious trusts, except for social services, to allow Taxpayers to claim TDS refund without any fine after the deadline for filing income tax returns (ITR).

These big changes in the new tax bill
If you look at other major changes, New Tax Bill is half compared to the size of the Income Tax Act of 1961 implemented so far. Instead of 816, the bill now has 536 sections and it is designed to reduce litigation, especially in simple language. In the past, according to FAQ released by Income Tax Department, the number of words in this new bill has now come down to 2.6 lakhs as compared to 5.12 lakhs of the current law. Apart from this, if we talk about the sections, then their number has also been reduced from the earlier 819 to 536, while the chapters have also been reduced from 47 to 23.

No assessment year, now tax year
The new Tax Bill-2025 has 1,200 provisions and 900 explanations removed. Another major change is that this bill for taxpayers proposes to replace the concept of ‘assessment year’ and ‘previous year’ with a unified ‘tax year’. Let us know that at present, tax payment on last year’s income is done in Assessment Year. For example, income earned in 2023-24 is taxed in 2024-25.