The cabinet erases the new income tax bill

The Minister of Finance, Nirmala Sitharaman, had announced in the 2025 budget that the new tax bill will be introduced in the current session of the Parliament. | Photo credit: Getty Images/Istockphoto

The Union Cabinet on Friday (February 7, 2025) approved the new Income Tax bill, which will replace the six decades of IT law, the sources said.

The new bill seeks to make direct fiscal law easy to understand and not impose any new fiscal burden. You will not have long supplies and explanations or sentences.

The cabinet, chaired by Prime Minister Narendra Modi, approved the new Income Tax bill, the sources said.

The sources said that the new Income Tax invoice will now be introduced into Parliament next week and will be sent to the Permanent Committee of Finance of Parliament.

The first section of the ongoing budget session ends on February 13, 2025. The session will meet again on March 10 and will sit until April 4.

The Minister of Finance, Nirmala Sitharaman, had announced in the 2025-26 budget that the new tax bill will be introduced in the current session of Parliament.

Mrs. Sitharaman had first announced an exhaustive review of the Income Tax Law of 1961 in July 2024 Budget.

The CBDT had established an internal committee to supervise the review and make the law concise, clear and easy to understand, which will reduce disputes, litigation and provide greater fiscal certainty to taxpayers. In addition, 22 specialized subcommittees have been established to review the various aspects of the Income Tax Law.

Public contributions and suggestions were invited in four categories: Simplification of the language, reduction of litigation, reduction of compliance and redundant/obsolete provisions.

The Income Tax Department has received 6,500 suggestions of interested parties on the review of the Income Tax Law.