February 13, 2025- Finance Minister Nirmala Sitharaman will introduce the new Income-Tax Bill 2025 in the Lok Sabha today on February 13. The Bill aims to consolidate and amend the taxation laws of the country.

Smt. Nirmala Sitharaman to move for leave to introduce a bill to consolidate and amend the law relating to income-tax, official list of business for the parliament session scheduled for Thursday reads.

The new income tax bill seeks to replace the six-decade-old Income Tax Act of 1964 which has become increasingly voluminous as amendments were added over the years. The new Bill does not introduce any new taxes but only simplifies the language of the existing Income Tax Act. The new law is expected to come into effect from the beginning of April 2026.

According to experts, the new Bill will eliminate several ‘obsolete’ sections of the existing Act, reduce litigation, and improve compliance. It is also expected to simplify the tax laws — ensuring they are more transparent, easier to interpret and taxpayer friendly.