New Income Tax Bill 2025: Simpler tax filing, fewer sections - expert explains
The Income Tax Bill (No.2) 2025 simplifies tax procedures and reduces the number of sections from 819 to 536. The Bill which would replace the 1961 Act, would streamline TDS, offer penalty-free refunds for delayed filings, and ensure simpler language for common man to understand tax related provisions.
New Delhi: The Income Tax Bill (No.2) 2025 was passed in the Lok Sabha on August 11, 2025. The Bill is being touted as a major legislative move of the Modi government to replace the 63-year-old law Income-tax Act, 1961, which governs income taxation for individuals and corporations.
The Bill aims to streamline TDS, exemptions and other compliance-heavy provisions. It also allows taxpayers to claim refunds without penalty on delayed filings.
Speaking to Money9, Tax and Cash Flow expert, CA Jagmohan Singh, explained the benefits of Income Tax Bill (No.2) 2025 that was passed in the Lower House as the Opposition parties continued to create ruckus over allegations of irregularities in the special intensive revision (SIR) of electoral rolls in Bihar.
Key Changes in New Income Tax Bill 2025
Giving his expert views, Singh said the new Bill ensures that the language is made simpler so that the tax provisions are easily understood by the common man. Divulging further, he said the Income-tax Act, 1961, had 819 Sections, while the new one has 536. Also, the government has added only 23 Chapters in the new Bill, while the older one had 47.
The tax expert said the Bill would simplify the tax filing process and the sentences are very easily written which would immensely help the common man. He also said formulas are also mentioned so that people can file their ITR on their own.
Singh said the provisions mentioned are simply written and very easy to understand, while the interpretation of Income Tax 1961 Act was very tough as it had very technical language.
The expert advised the taxpayers to file their ITR before September 15, 2025 as it helps an individual to easily get loans or visa.
The Income-Tax Bill, 2025 which was first introduced in the Lok Sabha on February 13, 2025 was withdrawn on August 8. It was re-introdiced in the Lower House on 11 August after incorporating over 285 recommendations made by the Parliamentary Select Committee chaired by BJP MP Baijayant Panda.