Revamp of India's Income Tax Code: A Historic Shift

A new Income Tax bill will soon replace the outdated 1961 act. Finance Minister Nirmala Sitharaman announced this during her 2025-26 Budget speech, emphasizing a 'trust first, scrutinize later' approach. The new bill aims to simplify tax processes, ensure clarity, and reduce litigation.

The government has announced plans to introduce a new Income Tax bill in Parliament next week, updating the long-standing income tax act of 1961.

Finance Minister Nirmala Sitharaman highlighted the bill's focus on justice and trust during her 2025-26 Budget address, aiming for clarity and simplicity in tax legislation.

The upcoming bill promises substantial reform, reducing legal complexities and encouraging taxpayer confidence, with numerous stakeholder inputs considered in its drafting.

(With inputs from agencies.)