Income Tax Bill 2025: FM Sitharaman To Introduce It Today – What’s New In THIS System?

The Income Tax Bill 2025 got the nod from the union cabinet recently and the bill is now set to be presented in the Parliament. Finance Minister Nirmala Sitharaman is set to introduce the new Income Tax Bill in Parliament today, February 13, read the Lok Sabha secretariat’s agenda circulated yesterday. Moreover, this 622 pages bill will replace the six-decade-old Income Tax Act of 1961.

According to media reports, this will be called the Income Tax Act, 2025, and may be implemented from April 2026. Analysts and experts are criticizing the old Income Tax Act for its complexity and were demanding the freshness from the long-long time. The new Income Tax Bill will potentially propose 23 chapters and 16 schedules, CNBC-TV18 reported, quoting sources.

Income Tax Bill 2025: Possible New Updates

• The new bill might introduce ‘Tax Year’, which will define the twelve-month financial period starting from April 1, 2026, said the report.
• The proposed bill may contain over 600 pages.
• According to the report, the new bill will focus on easing compliance and the new framework will streamline paperwork, integrate digital platforms, and simplify return filing procedures, aimed at reducing the burden on taxpayers.
• The new bill will focus on the comprehensive breakdown of allowances and gratuities in the Income Tax deductions on salaries.

Recent Changes

FM Sitharaman during her Budget 2025 speech, announced that individuals with an annual income of up to Rs 12 lakh will be exempt from paying any income tax under the new tax regime. Furthermore, this exemption can go up to Rs 12.75 lakh (Rs 75,000 as standard deductions) for salaried individuals under the new tax regime.

The Finance Minister also introduced the new income tax slabs, given below.

New Tax Slabs

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