Sitharaman introduced new Income Tax bill in LS, Sent to select panel

Finance Minister Nirmala Sitharaman on Thursday tabled the Income Tax Bill 2025 in the Lok Sabha. The new bill aims to simplify the terminology used in tax laws in India, thereby making it easier for taxpayers to pay taxes and file returns. She claimed that 4,000 amendments have been made to the 1961 act since it was put into force, which are “being looked at now”.“The Income Tax Act was originally enacted in 1961 and come into effect in 1962. At that time, they had only 298 sections…But as time went by…many more sections were added. As it stands today, there are 819 sections,” Sitharaman said.

Delhi: Speaking in the Lok Sabha, Union Finance Minister Nirmala Sitharaman says, "I rise to move forward with the introduction of a bill to consolidate and amend the law relating to income tax"

(Video Courtesy: Sansad TV) pic.twitter.com/RvO0r5Fl53

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As soon as Nirmala Sitharaman introduced the bill amid a ruckus in the Parliament, several Opposition MPs were seen staging a walkout. After introducing the New Income Tax bill in the House, Finance Minister Nirmala Sitharaman recommended sending the bill to the select committee. The Congress' Manish Tewari and the RSP's NK Premchandran suggested the new tax bill is, in fact, more complicated than the old. Ms Sitharaman said the MPs were incorrect; she said the present law had over 800 sections whereas the proposed law had only 536. Trinamool MP Saugata Roy then criticised the new bill as being "mechanical", to which Ms Sitharaman shot back, "... substantial changes are being made. The number of words have come down by half... sections and chapters have been cut. It is in simple English."