[ad_1]
New Income Tax Bill 2025: The simplified Income Tax Bill, half the size of the 1961 Income Tax Act, seeks to achieve tax certainty by minimising the scope of litigation and fresh interpretation, said the Income Tax (I-T) department on Thursday, February 13. According to the I-T department, the tax bill aims to simplify the tax system based on six core ‘SIMPLE’ principles, with ‘SIMPLE’ being an abbreviation for the fundamentals on which the bill is based.
Earlier today, the I-T Department took to microblogging platform ‘X’ (formerly Twitter) and said, “The Income-Tax Bill 2025 has been introduced in the Lok Sabha today. The Bill aims to simplify the tax system for all and is built on these core “SIMPLE” principles.” The I-T department went on to explain the principles as follows:
New Income Tax Bill 2025: Core principles of the new Income Tax Act
S: Streamlined structure and language
Provisions are rewritten in plain, easy-to-understand language for tax laws.
1: Integrated and concise
No more distributed provisions. A single, well-structured Act consolidates all related provisions. The volume is reduced without losing the spirit.
M: Minimise litigation
More clarity, fewer tax disputes. FAQs, guidance notes, and explanations to prevent multiple interpretations. It is a win for both taxpayers and the tax administration.
P: Practical and transparent
A tax law for convenience. Eliminates redundant provisions, simplifies cross-references, and uses tables and structured formats for better clarity. Understanding taxation made easier.
L: Learn and adapt
A tax system that evolves with the world. Adopts global best practices from various tax jurisdictions. Keeps India’s core tax principles intact. Balanced, future-ready reforms.
E: Efficient tax reforms
Clarity without disruption. Ensures reforms don’t disturb settled tax policies. Focuses on improving efficiency.
The new bill, introduced in the Lok Sabha, has a word count of 2.6 lakh, lower than 5.12 lakh in the I-T Act. The number of sections is 536, as against 819 effective sections in the existing law. The number of chapters has also been halved to 23 from 47, according to the FAQ issued by the I-T department.
The Income Tax Bill 2025 has 57 tables, compared to 18 in the existing Act, and removed 1,200 provisos and 900 explanations. Finance Minister Nirmala Sitharaman, while introducing the Bill in the Lok Sabha, said that “substantial changes” have been made in the Bill.
The number of words has been halved from 5.12 lakh, and sections have been reduced from 819 to 236. Following the introduction, the Bill was referred to the select committee of the Lok Sabha and mandated to submit its report by March 10.
[ad_2]
Source link