“New Income Tax Bill To Be Introduced Next Week”: Nirmala Sitharaman

Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman announced on Saturday that the government will introduce a new Income Tax Bill in Parliament next week.

“The government will introduce a new Income Tax Bill next week in Parliament to advance the ‘trust first, scrutinise later’ principle. The new legislation will be half the length of the current statute and will feature clear and direct language,” the minister stated during her Budget 2025 speech.

In her July Budget, Sitharaman had pledged a comprehensive review of the six-decade-old Income Tax Act, 1961, to be completed within six months. She highlighted that over the past decade, the government has implemented numerous taxpayer-friendly reforms, including faceless assessments, to enhance convenience and efficiency.

The proposed bill aims to simplify existing Income Tax (I-T) laws, making them more accessible and comprehensible. Additionally, Sitharaman noted the introduction of a taxpayers’ charter, expedited processing of tax returns, and the fact that nearly 99% of income tax filings are now based on self-assessment.

To facilitate this overhaul, the Central Board of Direct Taxes (CBDT) formed an internal committee tasked with making the Act more concise, clear, and comprehensible. According to PTI reports, this effort is expected to reduce legal disputes, minimize litigation, and provide taxpayers with greater certainty. Furthermore, 22 specialized sub-committees have been established to conduct a comprehensive review of different aspects of the Income Tax Act.

In her eighth consecutive Budget speech, Sitharaman also announced significant relief measures for middle-class taxpayers.

“The middle class is a vital pillar of our economy. In recognition of their contribution, we have consistently reduced their tax burden. I am now pleased to announce that individuals earning up to ₹12 lakh will not be required to pay income tax,” she declared.