Finance Minister Nirmala Sitharaman will present the new Income Tax Bill today, these are the major changes

New Tax Bill: Finance Minister Nirmala Sitharaman will present the new Income Tax Bill 2025 in the Lok Sabha today, which will replace the 63-year-old law. It includes 285 amendments, simple language, fewer sections, integrated tax year and many major changes giving relief to taxpayers.

New Tax Bill: In the direction of major changes in the Indian tax structure, Finance Minister Nirmala Sitharaman will present the revised new Income Tax Bill 2025 in the Lok Sabha on Monday. This bill will replace the nearly 63-year-old Income Tax Act 1961. It includes 285 amendments suggested by the Select Committee, including 32 major changes.

The committee headed by BJP MP Baijayant Panda presented these recommendations last month. Union Minister Kiren Rijiju said that due to such a large number of changes, it was necessary to withdraw the old draft and present the revised bill to save time and for legislative clarity.

Major changes:

Sections will be reduced

In the new bill, the number of sections has been reduced from 816 to 536 and the number of chapters from 47 to 23. The number of words has also been reduced from 5.12 lakh to 2.6 lakh.

Unnecessary provisions removed

About 1,200 provisions and 900 explanations have been removed.

Concept of Tax Year

Proposal to adopt a unified Tax Year by eliminating the existing "Assessment Year" and "Previous Year".

New system for trusts

Anonymous donations limited to religious trusts only, trusts providing social service will be an exception.

Relief in TDS refund rules

Allows to claim TDS refund without penalty even after the ITR deadline.

The report was presented on July 21

The new bill is about half the size of the existing law and has been prepared in simple language to reduce litigation. The detailed report of the Select Committee was presented on 21 July 2025, and now its revised form will be placed in Parliament for consideration.

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