The new Income Tax Bill, approved by the Union Cabinet on 7th February 2025, aims to modernize and simplify tax laws, replacing the Income Tax Act of 1961. Key expectations from the bill include:
✅ Simplified Tax Structure – The new law is expected to be 50% shorter, making it easier for taxpayers and professionals.
✅ No New Taxes – Focus on clarity and reducing litigation rather than increasing tax burdens.
✅ Lower Penalties – A more taxpayer-friendly approach with reduced penalties for certain offenses.
✅ More Precision & Transparency – Removal of outdated provisions to reduce multiple interpretations and disputes.
✅ Digital & AI-driven Compliance – Potential improvements in digital tax filing and AI-based scrutiny to enhance efficiency.
Income Tax Bill 2025, having 536 sections, and 23 chapters running into 622 pages.
The bill will be introduced in Parliament soon and reviewed by the Standing Committee on Finance. This move is set to create a more predictable, efficient, and taxpayer-friendly system.