The New Income Tax Bill (New Income Tax Bill 2025) announced by Union Finance Minister Nirmala Sitharaman is likely to be introduced in the Lok Sabha tomorrow, Thursday. Earlier, Nirmala Sitharaman had talked about bringing the New Income Tax Bill during her budget speech on February 1.

After introducing the bill, it will be sent to the Select Committee of the Lok Sabha for detailed discussion. A copy of the bill has been sent to the Lok Sabha members. Last week on Friday, the New Income Tax Bill was approved in the Modi Cabinet meeting. Sitharaman will introduce this bill.

Filing tax returns will be easier.

It is believed that with the enactment of this bill into law, filing income tax returns will become even easier. The New Income Tax Bill will replace the existing Income Tax Act 1961. Finance Minister Sitharaman first announced a comprehensive review of the Income Tax Act, 1961 in the July 2024 budget.

The CBDT had constituted an internal committee to oversee the review and make the Act concise, clear, and easy to understand.

The bill will be sent to the parliamentary committee.

Finance Minister Sitharaman said about the bill on February 8, "Regarding the proposal of the New Income Tax Bill, I hope it will be introduced in the Lok Sabha next week. After that, it will be sent to a committee. After the parliamentary committee gives its recommendations on it, the bill will go back to the cabinet. After the approval of the cabinet, it will be introduced again in Parliament. I still have to go through three important stages." The new Income Tax Bill 2025 or the new Direct Tax Code is part of a larger effort to reform India's tax system. It aims to reform the existing tax structure to make it more streamlined and transparent.

The bill will be in simple and easy words.

There will be no provision for imposing any new tax in the New Income Tax Bill. In this, only the tax structure will be rationalized and simplified. It will have provisions for many new reforms in the existing law. There may also be a provision to reduce the punishment for many crimes.

Along with this, the language related to tax in the new bill will be simple so that even the common taxpayer can understand it. The new bill will aim to reduce litigation. The aim of the bill is also to bring transparency to the tax system. Old and outdated terminology will also be removed. Overall, this bill will be in simple and easy words.

What will be the important changes?

There will be no provision to impose any new tax in the new Income Tax Bill.
The new bill will aim to reduce litigation.
The new bill aims to bring transparency in the tax system.
Old and outdated terminology will be removed. The language related to tax will be simple and easy.

There may also be a provision to reduce the punishment for many crimes.
There will be no change in the period of short-term capital gains for equity. Under section 101 (b), a period of up to 12 months will be considered as short-term capital gains.
No change in the rate of short-term capital gains tax. Short-term capital gains tax will remain at 20 percent. It is proposed to implement the new bill from 1 April 2026.

The entire 12 months of the financial year will now be called the tax year.

There will be no such thing as an assessment year. Such a word will not be used. The new income tax bill will be of a total of 600 pages. It will have a total of 23 chapters, which will have a total of 16 schedules. There will be a total of 536 clauses, earlier there were 298 sections.

Disclaimer: This content has been sourced and edited from tv 9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.