New Income Tax Bill to Simplify Taxation System: Expected to be Presented on February 13

New Delhi, India: The long-awaited New Income Tax Bill, set to be presented by Finance Minister Nirmala Sitharaman on February 13, promises to simplify and streamline India’s taxation system. In her Budget 2025 speech, Sitharaman emphasized that the new bill would cut down the complexity of the current law, which has been in place since 1961 and spans a hefty 880 pages. Over the years, various amendments have made the Income Tax Act cumbersome and difficult to understand for the average taxpayer.

The upcoming bill is expected to bring down the number of pages to just 622, with 536 sections and 23 chapters. A major highlight of the new bill is the introduction of simpler terminology and the replacement of the term "Previous Year" with "Tax Year," eliminating the concept of "Assessment Year." This change aims to make the process more transparent, efficient, and easy to comprehend.

Munjal Almoula, Head of Tax at BDO India, believes the bill will remove redundant provisions, making tax compliance easier and less burdensome. The bill is also expected to introduce a simplified compliance mechanism, greater clarity on tax assessments, and quicker refund processes. Furthermore, the bill may extend the time limit for filing income tax returns and introduce stronger measures to combat tax evasion.

The government's initiative aims to not only simplify taxation but also reduce legal complexities, providing a more user-friendly experience for taxpayers across India.