Parliament passes revised Income Tax Bill, 2025 , Pg11

Key Highlights:

• Parliament passed the revised Income Tax Bill, 2025 on Tuesday.
• The new bill will replace the Income Tax Act, 1961.
• The revised bill is scheduled to come into force from April 1, 2026.
• Finance Minister Nirmala Sitharaman piloted the Income Tax Bill.

Detailed Insights:

• The Income Tax Act, 1961 has been the primary legislation governing income tax in India for six decades.
• The new Income Tax Bill, 2025 aims to modernize and simplify the income tax structure.
• Implementation from April 1, 2026, allows for a transition period for taxpayers and administrators.
• The revised bill likely includes changes to tax rates, exemptions, and compliance procedures.

Key Concepts Involved:

• Income Tax: A direct tax levied by the government on the income of individuals and businesses.
• Fiscal Policy: Government policy that uses taxation and spending to influence the economy.