New Delhi, Feb 8, 2025 – The Union Cabinet has approved the much-anticipated new Income Tax Bill, paving the way for a major overhaul of the existing tax framework. The bill is expected to be tabled in the Lok Sabha on Monday, sources familiar with the matter said.
The new legislation aims to simplify the decades-old Income Tax Act, 1961, incorporating modern tax policies that align with India’s evolving economic landscape. It is expected to introduce a more streamlined tax structure, reduce compliance burdens, and provide relief to middle-class taxpayers.
Sources indicate that the bill will not introduce any new taxes and just focus on simplifying tax laws, removing ambiguities, and ensuring ease of compliance for taxpayers. Additionally, it is likely to include measures to boost investment, encourage digital transactions, and enhance transparency in tax administration.
Finance Minister Nirmala Sitharaman had previously hinted at a comprehensive tax reform, stating that the government was committed to making taxation “simpler and more taxpayer-friendly.” With the bill now cleared by the Cabinet, its presentation in Parliament will mark a significant step toward achieving these reforms.
If passed by both Houses, the new tax law could replace the existing framework, significantly impacting India’s taxation system. Further details on the provisions of the bill are expected to be disclosed during the Lok Sabha debate on Monday.
Stay tuned for more updates.
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