New Delhi: The government may soon introduce a new income tax bill in Parliament. According to sources, this bill may be tabled in the Lok Sabha on August 11. However, there is also a possibility of postponing it till the winter session for further amendments. This bill is listed in the agenda of the current monsoon session.
The aim of the new Income Tax Bill is to simplify and modernize the old Income Tax Act of 1961. The government is planning to implement it from April 1, 2026.
Based on the recommendations of the Parliamentary Select Committee, 285 amendments have been made in the bill. These major changes include:
According to sources, the government has accepted most of the recommendations of the Parliamentary Select Committee. The committee believes that before passing the bill, more technical improvements are necessary in it so that there is no problem after implementation.
The new Income Tax Bill is part of the government’s large-scale tax system reform campaign. This means that the government wants to simplify the tax system, simplify the process of paying taxes, and encourage people to invest.
The government has clarified that the new law will be effective from April 1, 2026. It will have a direct impact on common taxpayers, corporates and investors.
The number of words in the new Income Tax Bill is 2.6 lakh, which is much less than the 5.12 lakh words of the current Income Tax Act. It now has only 536 sections as against 819 sections, and the number of chapters has also been reduced from 47 to 23. Apart from this, 57 tables have been included in the new bill, whereas this number is only 18 in the existing law. Also, 1,200 provisos and 900 explanations have been removed. This new law will come into force from April 1, 2026 and is an important part of the government’s comprehensive tax reform campaign to simplify and modernize the tax system.
