Income Tax Bill-2025

The Indian Income Tax Bill 2025, introduced in Parliament on February 13, 2025, aims to overhaul the six-decade-old Income Tax Act of 1961. This initiative seeks to simplify tax laws by reducing the document from over 800 pages to 622 pages, eliminating redundant sections, and clarifying complex provisions. A significant change is the introduction of a unified 'tax year,' replacing the previous dual financial and assessment year system. The bill also proposes enhanced access for tax authorities during searches, allowing them to examine taxpayers' digital communications and online accounts. Notably, the new legislation maintains existing tax slabs and rates as announced in the Union Budget 2025, ensuring continuity for taxpayers. Overall, the bill aims to reduce legal disputes, encourage voluntary compliance, and modernize India's tax framework.