New Income Tax Bill To Have 622 Pages, 536 Sections; Likely To Be Tabled In Parliament Tomorrow|Personal Finance News

New Delhi: A crispier and streamlined Income Tax Bill 2025, having 536 areas, and 23 phases facing 622 web pages, is most likely to be presented in the Lok Sabha on Thursday.

The Bill as soon as passed will certainly change six-decade old Income Tax Act 1961, which for many years came to be bulkier and facility with modifications.

The recommended legislation changes the term ‘previous year’ as discussed in the Income Tax Act, 1961 with ‘tax obligation year’. Also, the principle of evaluation year has actually been gotten rid of.

Currently, for earnings made in the previous year (claim 2023-24), tax obligation is paid in evaluation year (claim 2024-25). This previous year and evaluation year principle has actually been eliminated and just tax obligation year under the streamlined expense has actually been generated. .
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The Income Tax Bill, 2025 consists of 536 areas, greater than 298 areas of the present Income-Tax Act, 1961. The existing legislation has 14 routines which will certainly raise to 16 in the brand-new regulations.

However, the variety of phases have actually been kept at 23. The variety of web pages has actually been decreased considerably to 622, virtually fifty percent of the present large Act that includes modifications transformed the last 6 years. .
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When theIncome Tax Act, 1961, was generated, it had 880 web pages. .
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“This increase in sections reflects a more structured approach to tax administration, incorporating modern compliance mechanisms, digital governance, and streamlined provisions for businesses and individuals. The new law introduces 16 schedules and 23 chapters,” AMRG &Associates Senior Partner Rajat Mohan stated. . .

As per the recommended legislation, more clear tax obligation therapy on supply choices (ESOPs) have actually been consisted of for decreased tax obligation disagreements and consists of judicial declarations of the last 60 years for even more quality. .
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“A key departure from the Income-Tax Act, 1961, is that previously, the Income Tax Department had to approach Parliament for various procedural matters, tax schemes, and compliance frameworks. Now, CBDT has been empowered to introduce such schemes independently, significantly reducing bureaucratic delays and making tax governance more dynamic,” he stated. . .

As per brand-new legislation, the CBDT can currently mount tax obligation management guidelines, present conformity steps, and implement electronic tax obligation tracking systems without needing constant legal modifications according to the Clause 533. .
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After intro, the expense is most likely to be sent out to a legislative standing board for analysis. .
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Finance Minister Nirmala Sitharaman had actually introduced inBudget 2025-26 that the brand-new tax obligation expense will certainly be presented throughout the recurring session of Parliament. .
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Sitharaman had very first introduced an extensive evaluation of the Income- tax obligation Act, 1961 in July 2024 Budget. .
.(* )CBDT had actually established an interior board to manage the evaluation and make the

The succinct, clear, and understandable, which will certainly lower disagreements, lawsuits, and give higher tax obligation assurance to taxpayers. Act, 22 been experts sub-committees have actually been developed to assess the different facets of the Also. .
.Income Tax Act inputs and tips were welcomed in 4 classifications: simplification of language, lawsuits decrease, conformity decrease, and redundant/obsolete arrangements. .
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Public earnings tax obligation division has actually gotten 6,500 tips from stakeholders on evaluation of the

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Income Tax Act

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