Parliament Set to Debate New Income Tax Bill Today—Key Changes to Watch

The New Income Tax Bill will be presented at the Lok Sabha on Thursday, sources told reporters. It was reported that the Union Cabinet last week cleared the latest income Tax bill. Nirmala Sitharaman earlier had said that the bill would be passed to a committee of the parliamentary parliament for review.

In the Budget of July 2024 the government had suggested a thorough review of the Income Tax Act 1961. The goal was to simplify the Act clear and concise, and to minimize litigation and disputes.

Sitharaman announced in her budget address one day before the budget that the measure would be introduced soon in the Parliament. "Over the last 10 years, our government has enacted a variety of reforms for the ease of tax payers including (1) assessment that is not face-to-face, (2) taxpayers charter, (3) faster returns, (4) almost 99 percent of returns are self-assessment, in addition to (5) Vivad se Vishwas scheme. In continuation of these efforts, I reiterate the determination by the department of taxation to "trust first, and then examine afterward. I will also be introducing the income tax bill that will be introduced in the coming in the next week." her budget address.

What can we be prepared for?

It is expected that the New Income Tax Bill, 2025 which will establish the idea of a tax year in order to address issues that arise from the current rules for the tax year as well as the prior year. A majority of taxpayers are confused between the financial year and the assessment year when they pay tax, The Economic Times reported.

Taxpayers might be interested to know they are not affected by tax payers should know that the Direct Tax Bill, 2025, will not impact the fiscal year. The bill that is being introduced is likely to alter sections within the new legislation.