Finance Minister Nirmala Sitharaman confirmed that the new Income Tax Bill will be adopted in Parliament’s July monsoon session
Indian Parliament will evaluate the new Income Tax Bill in its upcoming monsoon session to simplify direct tax laws. Finance Minister Nirmala Sitharaman announced that the bill Parliament introduced on February 13 will receive House review during July. A select committee inspects the bill, which targets eliminating several problems in contemporary tax policies.
Simplification of Tax Laws
The new bill has established simplification of the complicated income tax system as a prime element. The proposal recommends using “tax year” instead of “previous year” to correspond with the April to March financial cycle. Taxpayers will experience streamlined tax procedures because this bill eliminates the use of assessment years from the system. Tax deducted at source (TDS) provisions now appear under a single clause in new legislation simplifying law compliance for taxpayers.
Designers will simplify the new bill’s wording so taxpayers can understand their obligations more efficiently. The bill targets compliance reduction through the removal of outdated or redundant rules and forms. At present, taxpayers can send proposals to simplify the tax framework to stakeholders.
Amendments to Finance Bill
In parallel with the Income Tax Bill, the Finance Bill for 2025 obtained Parliament approval. One amendment in this bill eliminates the 6% equalization levy on online advertisements. The government removed this levy when it first appeared in 2016 because international economic changes and the evolution of the digital economy demanded such a move.
The Finance Bill presents significant tax benefits for people in the middle-income bracket. Under the new tax system, the government raised income tax exemptions to Rs 12 lakh, enabling taxpayers to gain Rs 1 lakh crore in available funds. The government made this decision as part of its strategy to provide economic relief to common people and stimulate national expansion.
Government’s Commitment to Taxpayer Rights
Throughout her statement, Finance Minister Sitharaman guaranteed no modifications will be introduced for essential tax regulations, including residency criteria and capital gains tax and TDS rate systems. The government will always respect taxpayer rights through its efforts to create a straightforward tax system that functions efficiently.
