Income Tax Bill Set for Monsoon Session Discussion: FM Sitharaman
Click to start listening
Synopsis
The new Income Tax Bill will be discussed in the upcoming Monsoon session of Parliament, aiming to replace the outdated Income Tax Act of 1961, according to Finance Minister Nirmala Sitharaman.
Key Takeaways
- New Income Tax Bill to be discussed in Monsoon session.
- Bill aims to simplify direct tax laws and reduce disputes.
- Word count reduced from 512,535 to 259,676.
- Chapters cut from 47 to 23 and sections from 819 to 536.
- Stakeholder consultations were conducted for feedback.
New Delhi, March 25 (NationPress) The upcoming Income Tax Bill is set to be discussed in the Monsoon session of Parliament, as announced by Finance Minister Nirmala Sitharaman during a Lok Sabha session on Tuesday.
The Income Tax Bill of 2025 aims to overhaul the existing Income Tax Act of 1961, which has been in place for over six decades. This new legislation seeks to simplify direct tax laws, eliminate uncertainties, and decrease tax-related disputes.
This simplification initiative is anchored on three essential principles: enhancing textual and structural clarity, ensuring stability without significant policy shifts or changes in tax rates, and preserving predictability for taxpayers, as stated by the Finance Ministry.
The Bill, inspired by global best practices, is designed to facilitate a more straightforward tax framework, thereby improving the ease of doing business. The volume of the Act has been significantly reduced, with the total word count slashed from 512,535 to 259,676 in the new Income Tax Bill. This represents an impressive nearly 50% reduction, equating to a cut of 252,859 words, as per an official announcement.
Moreover, the new Income Tax Bill's chapters have decreased from 47 to 23, while the number of sections has been trimmed from 819 to 536, effectively eliminating 283 sections, according to the statement.
This extensive reduction has been achieved through language simplification, making the law more user-friendly, and consolidating amendments to minimize fragmentation.
A three-pronged methodology was employed, focusing on removing complex language to improve readability, eliminating redundant provisions for easier navigation, and reorganizing sections logically for improved reference accessibility, according to the official statement.
Additionally, structural rationalization has been implemented using tables and formulas to enhance readability. The core principles of existing taxation have been preserved to ensure continuity while improving usability, the statement elaborated.
Consultations with industry experts and tax professionals were conducted, and simplification models from Australia and the UK were analyzed for best practices.
The government also prioritized stakeholder engagement, consulting taxpayers, businesses, industry associations, and professional groups. Out of 20,976 online suggestions received, relevant ones were evaluated and incorporated where feasible.
