National/ Business Desk
14 February
Ludhiana
Sandeep Dhand
Union Finance Minister Nirmala Sitharaman introduced the Income Tax Bill, 2025 in the Lok Sabha on Thursday, marking a significant step toward reforming the country’s tax system. The bill aims to simplify tax-related terms and modernize income tax laws.
While introducing the bill, Ms. Sitharaman requested Speaker Om Birla to refer the draft law to a select committee of the House. She urged him to take necessary steps to constitute the committee and set its rules. The committee is expected to present its report in the next session of Parliament.
The introduction of the bill faced initial opposition from some members. However, after a voice vote, the House passed a resolution allowing the bill to be introduced. The government emphasized that this new law was long overdue and necessary to simplify tax regulations.
One of the major changes in the proposed bill is the replacement of several tax-related terminologies. Terms like “assessment year” and “previous year” will now be replaced with “tax year” to make tax filing easier for individuals and businesses.
Apart from simplifying language, the bill is expected to introduce several reforms to modernize tax administration and enhance compliance. The exact provisions of the new law will be thoroughly reviewed by the select committee before final approval.
Once passed, the Income Tax Bill, 2025, will replace the existing Income Tax Act, 1961. Experts believe that these changes will reduce confusion among taxpayers and make the taxation process more transparent.
With the bill now introduced, all eyes are on the select committee’s report, which will play a key role in shaping the final version of the law.