FM Sitharaman to Table New Income Tax Bill in Lok Sabha Today
Finance Minister Nirmala Sitharaman is set to introduce the much-anticipated new Income Tax Bill in the Lok Sabha on Thursday, marking a significant step in simplifying India’s tax laws. However, the session was adjourned until 2 p.m. following protests by opposition members on various issues.
The new Income Tax Bill aims to replace the existing 64-year-old Income Tax Act, 1961, which has expanded extensively over the decades due to multiple amendments. The proposed legislation condenses the law from 823 pages with 819 sections to a more concise 622 pages with 536 clauses. The bill seeks to streamline provisions, simplify legal language, and remove outdated clauses, reducing the scope for litigation and making tax compliance easier.
Among the key changes, the bill proposes replacing complex terminology such as ‘assessment year’ with ‘tax year’ to enhance clarity. It does not, however, introduce changes to the existing tax slabs or rebate structures. Instead, it focuses on improving readability and accessibility for taxpayers. The Finance Ministry has emphasized that the new framework is designed to be more transparent and taxpayer-friendly, fostering voluntary compliance while reducing disputes.
The revised tax code is expected to take effect from April 1, 2026. Once introduced in the Lok Sabha, it will be referred to the Parliamentary Standing Committee on Finance for further examination before being enacted into law.
Industry experts have welcomed the move, highlighting its potential to modernize India’s taxation system. “This reform is a significant step towards modernizing India’s tax framework, bringing greater clarity and efficiency. The bill promises a more streamlined, accessible tax system, making it easier for citizens and businesses to fulfill their obligations while fostering trust in the system”, said Rohinton Sidhwa, Partner at Deloitte India.
The new bill is part of the government’s broader tax reforms aimed at making India’s taxation policies more efficient and aligned with global best practices. As the Lok Sabha resumes proceedings later in the day, all eyes will be on Sitharaman as she presents this landmark legislation.
