The Union Finance Minister, Nirmala Sitharaman, introduced the new Income-tax (No. 2) Bill, 2025 on 11-8-2025 to replace the 6-decade old Income-tax Act, 1961 which was passed by Lok Sabha without debate on 11-8-2025.
Need to replace:
The Income-tax Act, 1961 has been subjected to numerous amendments which resulted in overburdening of basic structure and complex language.
Earlier, the Income-tax Bill, 2025 was first introduced during the 2024 Budget which was approved by the Union Cabinet on 7-2-2025. But this Bill was withdrawn by the Government after the Select Committee laid out its report.
It was noticed that there were corrections in drafting, alignment of phrases, consequential changes and cross- references.
The new Bill has been introduced in an attempt to make the Act concise, lucid and easy to read and understandable which will help in reducing disputes, litigations and provide clearer tax certainty to taxpayers.
