New Delhi, March 20 (NationPress) Finance Minister Nirmala Sitharaman announced on Friday that the forthcoming Income-tax Act, 2025 will provide substantial aid to small business proprietors and professionals. The new legislation aims to streamline regulations, thereby alleviating compliance challenges and reducing tax disputes.

During the inauguration of the nationwide awareness initiative ‘PRARAMBH 2026’, FM Sitharaman emphasized that small enterprises and professionals form the foundation of India’s economy, and the new law has been crafted with their requirements in focus.

“Under this revised framework, businesses with a turnover of up to Rs 10 crore, contingent upon specific conditions, will not need to keep exhaustive records or undergo audits,” the Finance Minister indicated.

“This will notably lessen the compliance load and offer significant relief to smaller businesses,” FM Sitharaman added.

The Finance Minister also mentioned that various contentious topics, such as pre-construction interest on housing loans, have been explicitly resolved in the new legislation, thereby minimizing confusion and the potential for disputes.

Stressing the need to decrease litigation, FM Sitharaman remarked that every case escalating to a tribunal signifies a flaw within the system.

The Finance Minister underscored that the new Act seeks to reduce mistakes, disputes, and compliance expenditures, fostering a transition towards more efficient and transparent tax compliance.

The government has also introduced a fresh digital platform, Income Tax Website 2.0, alongside the new legislation.

“This platform will empower taxpayers to easily pose inquiries, interact with officials, and file tax returns,” the minister noted.

Officials have been instructed to broaden outreach efforts beyond metropolitan areas and connect with various groups, including students.

The new Income-tax Act supersedes the outdated Income-tax Act of 1961, which had become convoluted due to numerous amendments over time.

FM Sitharaman stated that the new legislation significantly simplifies the structure, decreasing the number of sections from roughly 819 to 536 and chapters from 47 to 23.

Moreover, the total length of the law has been nearly halved. A significant alteration is the elimination of the distinction between “previous year” and “assessment year,” introducing a singular, streamlined tax year.

The minister asserted that this simplification will facilitate better understanding and compliance among taxpayers.