rewrite this title and make it good for SEOBudget 2025: New income tax Bill to be tabled in Parliament next week, says FM Nirmala Sitharaman

In a big relief to the middle-class citizens, Finance Minister Nirmala Sitharaman announced a revised tax slab under the new income tax regime, mentioning that no tax will be deducted up to an annual income of Rs 12 lakh in her budget speech 2025 on Saturday, February 1.

The new I-T Bill will carry forward the spirit of “Nyaya” (justice) based on the concept of “trust first, scrutinise later”, the Finanace Minister mentioned.

The government will table the new income tax legislation in the Parliament next week during the ongoing budget session.

Key structural changes, such as adjustments to tax slabs, a rationalisation of deductions, and other incentives to spur economic growth, are anticipated to be introduced under the proposed Bill.

“The new bill will be clear and direct in text with close to half of the present law, in terms of both chapters and words. It will be simple to understand for taxpayers and tax administration, leading to tax certainty and reduced litigation,” Sitharaman said.

She claimed that the central government has implemented several taxpayer reforms in last 10 years and the new income-tax bill will be introduced next week. Speaking at a media briefing after the budget announcement, Sitharaman said, “I hope it (the Bill) will get passed without much of a difficulty”.

She added that the new income tax bill will be referred to the Standing Committee of Parliament. In July last year, Sitharaman had announced a comprehensive review of the Income-tax Act of 1961, aimed for completion within six months.

Subsequently, the CBDT formed an internal committee to oversee the review, with the goal of making the Act more concise, clear, and user-friendly. This will help reduce disputes and litigation while providing greater tax certainty for taxpayers.

Additionally, 22 specialised sub-committees were created to examine various aspects of the Income Tax Act.

The review has been completed, with over 6,500 stakeholder suggestions taken into account. The Income Tax Act of 1961, which governs direct taxes such as personal income tax, corporate tax, securities transaction tax, and gift and wealth taxes, currently comprises approximately 298 sections and 23 chapters.