Income Tax Bill, 2025: A New Chapter in Tax Legislation

Finance Minister Nirmala Sitharaman introduced the Income Tax Bill, 2025, aiming to simplify tax terminology and reduce legal sections. Despite opposition, the bill was moved to a House committee for further consideration. The reform seeks to replace complicated terms and streamline the income tax process.

In a significant move, Union Finance Minister Nirmala Sitharaman presented the Income Tax Bill, 2025, to the Lok Sabha on Thursday. The bill, intended to streamline and modernize tax processes, seeks approval for consideration by a select committee.

While the introduction met with opposition from several members, the Lok Sabha passed a motion by voice vote, allowing the bill's formal introduction. Minister Sitharaman stressed the importance of simplifying tax language and making the process more understandable to taxpayers.

The bill proposes to replace dated terminologies with simpler ones like 'tax year' and boasts a reduction in legal sections from 819 to 536. Sitharaman addressed concerns by opposition members, asserting that the reforms offer significant changes to the current tax landscape.

(With inputs from agencies.)