‘Assessment year’ to come to be ‘tax year’, govt to table brand-new costs in Lok Sabha tomorrow–

The Union federal government is anticipated to table the brand-new Income Tax Bill in the parliament on Thursday.

In the Budget 2025-26, Union Finance Minister Nirmala Sitharaman stated that she will certainly present brand-new Income Tax Bill that will certainly streamline tax-related events. It has actually given that been reported that that the Income Tax Bill is the much-awaited straight tax obligation code that has actually remained in the conversation for several years.

In her Budget speech, Sitharaman stated that Income Tax costs has actually been made under the “trust first, scrutinise later” structure. She additionally stated that the Income Tax Bill will certainly include streamlined language that will certainly lower lawsuits.

“The new bill will be clear and direct in text with close to half of the present law, in terms of both chapters and words. It will be simple to understand for taxpayers and tax administration, leading to tax certainty and reduced litigation,” stated Sitharaman.

What’s there in brand-new Income Tax costs?

The Income Tax Bill 2025 face greater than 620 web pages and has 536 areas, 16 timetables, and 23 phases.

The CNBC TV-18 has actually reported resources as stating that the brand-new Income Tax Bill will certainly be tabled in the parliament on Thursday.

Once gone by the parliament, it will certainly enter into impact on April 1, 2026, according to the record.

The costs, once it enters into impact, will certainly change the Income Tax Act of 1961.

CNBC-TV 18 reported resources as suggesting that the brand-new Income Tax Bill intends to generate convenience of conformity as brand-new streamlined regulations will certainly help in reducing conformity procedures by improving documentation, incorporating electronic systems, and streamlining return declaring systems.

The costs recommends to change the ‘assessment year’ with less complex ‘tax obligation year’, according to the record.

The tax obligation year will certainly describe the 12-month duration of the fiscal year beginning April 1, based on the record, which included that the term ‘previous year’ will certainly be changed by ‘financial year’.

Last week, the costs had actually been authorized by the Union Cabinet chaired by Prime Minister Narendra Modi, leading its method to be tabled in the parliament.