New Income Tax Bill 2025: Indian Finance Minister Nirmala Sitharaman introduced the Income Tax Bill, 2025, in Lok Sabha amid opposition parties opposing its introduction. The new Income Tax Bill aims to simplify India's tax laws, modernise definitions, and provide more clarity on various tax-related matters. It will replace the existing Income Tax Act, 1961.

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She has urged the Speaker, Om Birla, to refer the bill to the Select Committee of Lok Sabha.

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New Income Tax Bill 2025

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As per reports, despite opposition members opposing the bill at the introduction stage, the House passed a motion by voice vote for its introduction.

While moving the bill for introduction, Sitharaman urged the Speaker to refer the draft law to a select committee of the House, which will submit its report by the first day of the next session.

She urged the speaker to take a call on the proposed panel's composition and rules.

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The much-anticipated bill will replace terminologies such as "assessment year" and "previous year" with the easier-to-understand "tax year" as part of a move to simplify language while removing provisos and explanations.

Modern terminologies in Income Tax Bill, 2025

The new income tax bill will simplify the country's tax laws, modernise definitions/terminologies, and provide citizens more clarity on various tax-related matters.

It will introduce changes that affect different categories of taxpayers, including individuals, businesses, and non-profit organizations.

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One of the new terms introduced in the income tax bill is "tax year" which, as per ANI, will replace existing terms like financial year and assessment year systems.

It also defines "virtual digital asset" and "electronic mode", reflecting the growing importance of digital transactions and cryptocurrency in today's financial landscape.

(With inputs from agencies)