Union Finance Minister Nirmala Sitharaman introduced the Income Tax Bill 2025 in the Lok Sabha today. She stated, “I am placing this bill on the table of the Lok Sabha.” However, the opposition was in turmoil, and some members left the House before the bill was introduced. Addressing objections raised by A.K. Premchandran, she asserted that they were not valid.
Sitharaman highlighted that the Income Tax Act, originally enacted in 1961, had 219 sections. Over the years, numerous amendments increased this number to 819 sections.
What Did Nirmala Sitharaman Say?
“Now, we have brought a bill with 561 sections. Manish Tewari claimed that the new Income Tax Bill has more sections, but that is incorrect. Instead of 819 sections, we have now introduced a bill with only 561 sections.”
She further noted that the existing act had been amended over 4,000 times, making it increasingly complex. Criticizing the opposition, she remarked that “Manish Tewari may not have even bothered to look at the bill.” Sitharaman also dismissed allegations made by the opposition, stating that the government has implemented policy changes, not mechanical ones.
The Indian tax system has undergone several reforms over the years, making the Income Tax Act, 1961, increasingly complex. The current tax framework includes numerous exemptions, deductions, and provisions that often lead to confusion among taxpayers and disputes between the tax department and businesses or individuals. The government has introduced this bill to simplify tax laws.
How Will the Bill Affect You?
The middle class has long demanded tax relief, and Budget 2025 has introduced significant tax cuts to address these concerns. Nirmala Sitharaman announced notable reductions in tax liabilities during her Budget speech.
The new Income Tax Bill aims to simplify the tax filing process, making it less burdensome. As a result of these changes:
- Salaried individuals, small businesses, and the self-employed will benefit from a more transparent tax system.
- The cost of compliance with legal requirements will decrease.
- The tax filing process will become easier.
