The new income tax bill will be discussed in the monsoon session of Parliament, Finance Minister Nirmala Sitharaman announced on Tuesday.
While responding to the discussions on the Finance Bill 2025 in the Lok Sabha, she mentioned that the new bill, introduced on February 13, is currently under review by the Select Committee. This committee has been asked to submit its report by the first day of the next parliamentary session. “We will take it (the new income tax bill) up in the monsoon session,” she confirmed.
The monsoon season usually happens in July and continues through August.
The new bill is designed to simplify the existing income tax system. It is half the size of the current Income Tax Act, 1961, which makes it shorter and easier to understand. The Income Tax department explained that the bill aims to reduce legal disputes and avoid fresh interpretations, which often lead to confusion.
The new bill has about 2.6 lakh words—much shorter than the existing law, which has 5.12 lakh words. It also cuts down the number of sections to 536 from the current 819 sections. Additionally, the number of chapters has been reduced from 47 to 23, making the structure clearer.
Another major change is the number of tables—the new bill includes 57 tables, compared to just 18 in the old law. It also removes 1,200 provisos (conditions) and 900 explanations that made the old law more complex.
This new income tax bill aims to make the tax process simpler, clearer, and more efficient for everyone.
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