India's Finance Minister Unveils New Income Tax Bill in Lok Sabha

Finance Minister Nirmala Sitharaman presented the new Income Tax Bill 2025 in the Lok Sabha today, marking a significant overhaul of India's tax system. The bill, set to replace the Income Tax Act of 1961, aims to simplify tax laws and ease compliance. Key changes include introducing the concept of 'tax year' instead of 'assessment year', reducing the law's length from 823 to 622 pages, and increasing sections from 298 to 536. The bill maintains existing tax rates and introduces a new rebate allowing individuals earning up to ₹12 lakh annually to pay no tax. If approved, the new tax code will take effect from April 1, 2026, after review by the Parliamentary Standing Committee on Finance.

Source: Lok Sabha Proceedings