ISSN (Online) : 2456 - 0774

Email : ijasret@gmail.com

ISSN (Online) 2456 - 0774

The Income Tax Bill 2025: Simplification with No Major Tax Policy Changes to Ensure Continuity and Coherence

Abstract

The Income Tax Department (ITD) of the Government of India collects income tax on the income earned by different persons as per the provisions of the ITA 1961 (IND). However, the said Act has become technical and a little bit complicated to understand. To bring simplicity to the provisions of the ITA 1961 (IND), the Government of India has introduced the new Income-tax Bill, 2025, on 13 February 2025 in the Parliament. The article aims to examine the methods employed for simplification. After going through the provisions of the existing Income-tax Act, 1961, and the new Income-tax Bill, 2025, it has been found that most of the sections removed from the existing Income-tax Act, 1961, were redundant in the said Act and thus correctly removed to make the income tax provisions simple. Further, no major tax policy changes have been made to ensure continuity and certainty, and thus, the provisions of the proposed Incometax Act, 2025, are almost like the provisions of the existing Income-tax Act, 1961.  

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