New Income Tax Bill 2025 Removes Redundant Provisions, Simplifies Structure

The parliamentary panel examining the Income Tax Bill 2025 has recommended a series of corrective changes aimed at simplifying and modernizing the legislation. As a result, the size of the bill has been reduced from 850 pages to 600 pages, with a focus on clearer language, streamlined provisions, and structural improvements.

 

The bill, tabled in Parliament on February 13, 2025, is designed to simplify the language and framework of the Income Tax Act 1961. Officials have clarified that the changes do not alter core tax policies, ensuring continuity, certainty, and predictability for taxpayers.

The simplification exercise was guided by three key principles:

• Textual simplification for improved clarity.
• Structural reorganization to make navigation easier.
• Elimination of redundant and obsolete provisions to enhance efficiency.

The revised bill uses simplified language to make the law more accessible and has reorganized sections for logical flow. The aim is to reduce repetitive clauses, modernize outdated references, and enhance usability for both taxpayers and administrators.

 

Existing taxation principles have been retained to ensure continuity, while the revisions focus on improving the ease of doing business and reducing litigation. The government has described the new bill as a tax framework that is “simplified, clear, and relevant for the 21st century.”

 

Finance Minister Nirmala Sitharaman highlighted that the bill reflects the government’s commitment to modernization, while CBDT Chairman Ravi Agrawal noted that the structural changes will help reduce legal disputes and increase compliance.