The Lok Sabha passed the new Income Tax Bill 2025, replacing the Income Tax Act, 1961 on Monday (August 11, 2025). This bill includes almost all the recommendations of the select committee and the Income Tax law has been prepared for the purpose of making it easy, simple and effective.

Finance Minister Nirmala Sitharaman introduced this bill in the Lok Sabha on Monday, which has provisions to simplify the language, remove unnecessary provisions and make the tax system clear and accurate. This bill was passed from the House without much discussion amid the uproar of the opposition.

Amendment made in old bill

Earlier, the government had introduced the Income Tax Bill 2025 in February this year, which was sent to the Select Committee, the Select Committee reviewed the old bill and gave 285 suggestions. The government accepted most of the recommendations given by the Select Committee and all those reforms have been included in the new bill.

On Friday, Finance Minister Nirmala Sitharaman withdrew the old bill from the Lok Sabha. The purpose of creating a new bill by taking the old bill withdrawn is said to remove the questions arising on some provisions during the modification process and how to include suggestions. The new bill makes them more clear, organized and easy to understand while maintaining the existing tax provisions.

After Lok Sabha, now presented in Rajya Sabha

Under this bill, the language of Income Tax Act has been made easier. Also, by amending many provisions, many provisions have been kept according to the convenience of the taxpayer. This step is considered an important attempt towards making the Indian tax system simple and free from complications. After the Lok Sabha, this bill will now be introduced in Rajya Sabha.

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