New Delhi: After approval from the Cabinet, Finance Minister Nirmala Sitharaman today introduced the new Income Tax Bill in the Lok Sabha. This new bill will replace the Income Tax Act of 1961. The primary objective of this bill is to simplify and modernize India’s tax system.
After its introduction, the bill has been sent to the Select Committee for review. Once the committee submits its final report, Parliament will consider passing the bill. The Select Committee is expected to submit its report on the first day of the next parliamentary session.
Key Features of the New Income Tax Law
The new tax law consists of 23 chapters and 298 sections, covering personal income tax, corporate tax, securities transaction tax, and gift tax.
The language of the law will be simpler, making it easier for taxpayers to understand without relying heavily on tax professionals.
The government has introduced this bill to reduce tax disputes and simplify direct tax laws.
Implementation Timeline
The government aims to implement the new income tax law from the financial year 2026-27, i.e., from April 1, 2026.
For the financial year 2025-26, taxpayers will continue to follow the existing Income Tax Act for tax filings in March 2026.
Sufficient time will be