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Union FM Nirmala Sitharaman tables new Income Tax Bill in LS
Feb-13-2025

Union Finance Minister (FM) Nirmala Sitharaman presented the new Income Tax Bill in Lok Sabha (LS) which will replace the Income Tax Act, 1961 and introduce changes that affect different categories of taxpayers, including individuals, businesses, and non-profit organizations. The bill aims to simplify tax laws, modernize definitions, and provide more clarity on various tax-related matters.

After introducing the Bill in the LS, Finance Minister asked Speaker Om Birla to nominate members for a standing committee to reviewing the newly tabled income tax bill. Opposition members opposed the bill during its introduction, but the House passed the motion to introduce it by voice vote. Following this, several Opposition MPs were seen staging a walkout. 

Speaking on objection raised by Opposition MP from Kerala's Kollam, NK Premachandran, on the new bill having more sections than the previous Income Tax Act from 1961, Sitharaman said, ‘He should understand where the law is today and where it is being reduced.’ On TMC MP Professor Sougata Ray's objection about the changes in the new tax bill being ‘mechanical’, the finance minister responded, ‘They're not mechanical changes. Substantial changes are being made. Number of words have come down by half. Sections and chapters have come down. It is in plain simple English and plain simple Hindi’. Congress MP Manish Tiwari slammed the newly introduced Income Tax Bill, claiming it is more complex than the existing law.

The new Bill includes 23 chapters, 536 sections, and 16 schedules. Despite an increase in the number of sections, the Bill is still shorter because of removal of extra provisions and simplified language. LS adjourned to meet on March 10 for second half of Budget session.


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