The central government is likely to present the new Income Tax Bill in Parliament on August 11, sources told Zee Business.
On Friday, the Union Cabinet may meet at around 1 pm to discuss and possibly clear the bill, they said.
The new Income Tax Bill — slated to take effect from April 1, 2026 — is aimed at simplifying the existing law by introducing clearer tax laws, reduced litigation, removal of redundant provisions, rationalising of exemptions, and streamlining of digital income norms. The bill reflects the Narendra Modi government’s commitment to enhancing ease of doing business in the country through a simpler and clearer tax framework.
Key facts about the Income Tax Bill
In February, the bill was forwarded to a parliamentary panel after being presented in Parliament.
In July, the committee came up with its recommendations in Parliament.
The simplified Income Tax Bill is set to be half the size of the current law, with a word count of around 2.6 lakh. It will have 536 sections in stark contrast to the 819 sections in the existing law, with 23 chapters instead of 47.
There are 57 tables in the new bill instead of 18 in the law.
| Item | Existing Income-tax Act, 1961 | Proposed in the Income-tax Bill, 2025 | Change (Reduction or Addition) |
| Words | 5,12,535 | 2,59,676 | Reduction: 252,859 words |
| Chapters | 47 | 23 | Reduction: 24 chapters |
| Sections | 819 | 536 | Reduction: 283 sections |
| Tables | 18 | 57 | Addition: 39 tables |
| Formulae | 6 | 46 | Addition: 40 formulae |
The bill also contains a number of qualitative improvements, including better law accessibility, amendment consolidation, structural rationalisation, and preservation of existing taxation principles.
ALSO READ: Monsoon Session of Parliament from July 21 to August 21; Taxation Laws, Manipur GST, 6 other new bills on the cards
Monsoon Session of Parliament
The current session, which began on July 21, is set to conclude on August 21 with an adjournment from August 12 to August 18.
