Finance Minister announced plans to introduce a new ...

New Income Tax Bill to Replace 1961 Act Promises Simplified Framework and Better Tax Administration for Taxpayers

February 9, 2025

News     Indian Laws

Finance Minister announced plans to introduce a new comprehensive Income Tax Bill in Lok Sabha, intended to replace the Income-Tax Act, 1961. Following Cabinet approval, the proposed legislation will undergo parliamentary standing committee review before final implementation. The bill aims to modernize tax administration through a more concise and clear framework, reducing disputes and enhancing tax certainty. CBDT established an internal oversight committee and 22 specialized sub-committees to review various aspects. The reform process includes three critical stages: initial introduction in Lok Sabha, committee scrutiny, and final parliamentary approval post-Cabinet endorsement. This legislative overhaul represents the first major restructuring of income tax law since 1961, focusing on taxpayer clarity and dispute reduction.

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