Income Tax Bill 2025: Simplifying India's Tax Landscape

Finance Minister Nirmala Sitharaman introduced the Income Tax Bill 2025 in the Lok Sabha, aiming to modernize India's six-decade-old tax framework. The bill, set to take effect from April 1, 2026, reduces complexity by cutting the word count by half and introducing 57 illustrative tables. Key changes include replacing "assessment year" with "tax year" and reorganizing deductions and exemptions into separate schedules. While maintaining existing tax rates and structures, the bill simplifies language, removes obsolete provisions, and empowers the CBDT to establish digital tax monitoring systems. This comprehensive overhaul promises a more transparent and efficient tax regime for both individuals and businesses.

 

Sources: Indian Express, Economic Times, Deccan Herald