New Income Tax Bill likely to be tabled by Finance Minister Nirmala Sitharaman in Parliament today

Finance Minister Nirmala Sitharaman is likely to table the New Income Tax Bill today, reported TOI. The intention to introduce the New Income Tax Bill was first announced by Sitharaman in her Union Budget 2025 speech.

After the introduction in the Parliament, the bill will be sent to the Standing Committee on Finance for review. The current budget session's first phase concludes on February 13, with proceedings resuming on March 10 and continuing until April 4.

Sitharaman announced during Budget 2025-26 that the New Income Tax Bill would be presented in the current parliamentary session. It was approved by the cabinet on February 7.



The bill, which will replace the Income Tax Act, 1961, aims to simplify and modernise India’s tax system. It will also simplify legal language so that taxpayers can easily understand the provisions.

The bill will not introduce new taxes. Instead, it will focus on simplifying tax laws, reducing legal complexities, and making compliance easier for taxpayers, the finance secretary had earlier confirmed.

It will have shorter sentences, provisos and explanations. The government has also said that the new law will be 50 per cent shorter than the current Act. A major goal is also to reduce litigation.

The bill may introduce lower penalties for certain offences, making the tax system more taxpayer-friendly.

The current Income Tax Act contains 298 sections across 23 chapters. It has laws that govern personal income tax, corporate taxes, securities transaction tax and gift tax.


The new legislation is expected to exclude irrelevant amendments and sections, featuring clear language that the public can understand without professional tax consultation.

If the bill is passed, the new tax system will take effect from the financial year 2025-26. It will apply to taxpayers from the assessment year 2026-27.

The Union Cabinet approved the New Income Tax Bill on Friday. It will replace the existing Income Tax Act 1961, which has been in effect for six decades.