A New Dawn for Taxpayers: Income Tax Bill 2025 Set to Ease Tax Burden

India: The Indian government is preparing to unveil a game-changing Income Tax Bill during the Budget 2025 session, promising major relief for taxpayers. This proposed law aims to replace the decades-old Income Tax Act of 1961 with a modern, simplified version that will slash its provisions by nearly 60%.

Finance Minister Nirmala Sitharaman, during the eighth pre-Budget consultation with various stakeholders, reaffirmed the government's commitment to revamping the tax system. The updated Income Tax Bill, currently under review by the Ministry of Law, is expected to be presented in Parliament during the second half of the Budget session, which starts on January 31, 2025.

The move to replace the Income Tax Act, a legal framework that spans 23 chapters and 298 sections, is expected to streamline compliance and reduce administrative burdens. The revised law is set to ensure more tax certainty for businesses and individuals, lower disputes, and speed up resolutions.

An internal committee from the Central Board of Direct Taxes (CBDT) received over 6,500 suggestions from various stakeholders. The feedback focuses on simplifying language, minimizing compliance efforts, reducing litigation, and eliminating redundant provisions.

Key Features of the New Income Tax Bill:

• Reduction in the number of provisions by 60%.

• Simplification of tax laws and processes.

• Taxpayer-friendly compliance environment.

• Minimized disputes and swift resolutions.

Once implemented, the new bill aims to foster a more transparent, efficient, and taxpayer-friendly tax system for India.