FM NIRMALA Sitharaman Tables Vill Bill, 2025, in Lok sabha

Finance Minister Nermalla Sitramman submitted the new income tax bill in Locke Sebha on Thursday, with the aim of simplifying the current income tax law and its comprehensive renewal of 1961.

The current law has been criticized for its complexity and the difficulty of ordinary taxpayers to move. The proposed new bill is expected to have 23 chapters, 16 timetables, and about 536 items, which is a significant reduction compared to the previous work, which consists of 823 pages, 23 chapters, 14 tables, and 298 departments.

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The draft law will be referred to the Parliamentary Finance Standing Committee, which will start the process of consultation.

During the introduction of the bill, FM Sitharaman said: “The income tax law was originally enacted in 1961 and entered into force in 1962. At that time, they only had 298 parts … but over time … many were added Sections. As today, there are 819 sections.

“We reduce the income tax sections to 536. major changes are made in the income tax bill, the seasons are reduced,” she added.

Congress MP Manish Tiwari criticized the recently proposed income tax bill, saying it was more complicated than the current law.

FM Sitharaman, in turn, defended the draft law by highlighting that the amendments are large and not only superficial and that the total number of words has decreased significantly.

A member of the Bharatiya Jatata Tygasfi Party praised the recently presented income tax bill for its ability to reform the entire direct tax system in India, ultimately providing a more easy -to -use framework and an open and compatible.

The center said that the simplification exercise was guided by three basic principles:

> Textual and structural simplification to improve clarity and cohesion.
> The main tax policy does not change to ensure continuity and certainty.
> No adjustments to tax rates, maintaining the ability to predict taxpayers.

A three aspect approach was adopted:

> Eliminate a complex language to enhance reading ability.
> Removing excessive and repeated provisions for the best movement.
> Reorganizing the departments logically to facilitate the ease of reference.

Research -based consultative approach

The government guaranteed the participation of stakeholders on a large scale, taxpayer consulting, companies, industrial societies, and professional bodies. Of 20,976 online suggestions received, relevant suggestions were examined and integrated, as it was possible. Consultations were held with industry experts, tax professionals and simplical models from Australia and the United Kingdom, best practices were studied.

Specific improvements

Simplified language, which makes the law easier.
Unifying the adjustments, and reducing fragmentation.
Removing outdated and repeated judgments for greater clarity.
Structural rationalization through tables and formulas to improve reading ability.
Maintaining current tax principles, ensuring continuity while enhancing use of use.

Below are the most prominent events (based on the draft law)

Among many changes, the draft law may provide the concept of “tax year” in paragraph 3 to replace the confusion between the “evaluation year” and “the previous year”, “the fiscal year” with the aim of simplifying the understanding of the taxpayers.

Efforts were made to simplify the compliance of TDS by integrating all sections related to TDS into one condition with easy -to -read tables. Discounts are now scheduled for salaries, including standard discount, reward, and leave packaging, in one place in the new draft law, eliminating the need to move through multiple sections and rules.

The new draft law is free from unnecessary interpretations or sentences, which makes it easier and understanding. In addition, the excessive use of the word “despite” the 1961 income tax law in the new draft law was canceled and replaced by “regardless” in most cases. The draft law is characterized by a brief sentence and includes tables and formulas to enhance readers’ ability to readers.

If the bill is approved, the updated tax system will be implemented starting from the fiscal year 2025-26, which affects the taxpayers who start in 2026-27.

The new income tax bill has suggested virtual digital assets as part of the capitalist assets of residents, and includes various provisions such as TDS tax deduction, supposed tax rates, and time limits of the evaluation submitted in a CD coordination.

The income tax bill will soon be available for display on the official Lok sabha site. To reach this draft law, as well as others who were discussed in Lok sabha, please visit Sansad.in/ls/lgisland/bills.

The next income tax bill is to be shorter than the current income tax law, which leads to a more and easily understanding document for taxpayers. Unlike the 1961 huge income tax law, starting in 2024, the new draft law will consist of 622 pages, providing more easy -to -use evidence for individuals who move in tax laws.

To reduce confusion, the evaluation year will now be indicated in the name of the tax year. In addition, for newly created companies, the tax year will start from the date of its establishment, which extends the preparation of financial reports.

The new draft law also addresses the long disputes surrounding sections 44AD, 44ae and 44ADA, which was a point of dispute between professionals. To enhance clarity in the profit account, the draft law provides the concept of “already claimed profit”, providing a more accurate framework for set taxable income.

The proposed draft law includes updates to the structure, extends the deadlines, and provides incentives for digital transactions, while maintaining familiar tax regulations. It also includes provisions to provide a tax audit of companies whose rotation rate is of 10 rupees that mostly use digital payments. This change can easily be combined into the current verb.

The next draft law will retain the current final dates to provide proper returns and will not amend income tax panels or capital gains. This will provide taxpayers stability and guarantee.

In addition, the draft law does not indicate any amendments to income classification through various sources.

However, it aims to eliminate more than 300 outdated provisions that are no longer relevant.

The new legislation is scheduled to be implemented on April 1, 2026. As a result, taxpayers will need to adhere to the current income tax law for the fiscal year 2025-26 and files until March 2026.

Budget session

Lok sabha has been postponed until March 10, 2025. Parliament is scheduled to return to the second stage of the budget session from March 10 to April 4, 2025.