Parliament Budget Session 2025 Live: Nirmala Sitharaman to Introduce New Income Tax Bill Today

Parliament Budget Session 2025 Live: FM Nirmala Sitharaman will present the new Income Tax Bill in parliament today. The new income tax bill 2025 looks to simplify and significantly overhaul the present income tax act 1961, which has often been seen as cumbersome, complex, and extremely difficult to understand for the common taxpayers.

This has led to several tax-related litigations in the past, something that the upcoming bill will look to reduce by providing ease of understanding to the taxpayers.

As per sources, the new income tax bill is likely to have 23 chapters, 16 schedules and around 536 clauses. This is in drastic comparison with the previous act, which had around 298 sections. However, experts note that the number of chapters in both the present income tax act and the upcoming income tax bill remain the same at 23.

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According to sources, the new income tax bill will come into effect on April 1, 2026. After its presentation today, the bill will be referred to the standing committe on finance in parliament for review.

The income tax bill will be a significant step towards greatly simplifying the 800-pages long, complex and 64-year-old Income Tax Act.

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The new income tax bill has been introduced to replace nearly 60-year-old Income Tax Act, 1961. The proposed bill will include simplified language to benefit taxpayers and may reduce the number of sections by 25-30 per cent in an effort to simplify tax rules and its clauses.

Speaking to the media on February 8, Sitharaman said: “…the New Income Tax proposal, I hope to have it introduced in the Lok Sabha in the coming week. Post that it will go to a committee. The bill will again go to the Cabinet after the parliamentary committee gives its recommendations on it. After Cabinet approval, it will again be introduced in Parliament. I still have three critical stages to pass through."

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