February 13, 2025 – Union Finance Minister Nirmala Sitharaman tabled the new Income Tax Bill 2025 in the Lok Sabha, today, following approval from the Union Cabinet. Soon after, the first part of the Budget session was adjourned by Lok Sabha Speaker Om Birla. The House will now meet on March 10 for the second half.

While introducing the Bill in Parliament, the Finance Mnister proposed that the Speaker refer the draft law to a select Committee of the House so that it will submit its report by the first day of the next Budget session. Once passed, the Bill can come into effect from April 1, 2026.

The new Bill was cleared by the Prime Minister Narendra Modi-led Union Cabinet last week. If passed, it will eventually replace the Income Tax Act 1961, in force for 64 years. It features 536 clauses across 622 pages, replacing the existing 823-page. No new taxes will be introduced but instead, the Bill will be taxpayer-friendly, will simplify tax laws, reduce legal complexities and make compliance easier for taxpayers.

Additionally, the report of the Joint Committee of Parliament (JPC) on the Waqf (Amendment) Bill was also tabled today amidst protests by Opposition parties in both Houses of Parliament.

The first part of the Budget session of the Parliament had begun on January 31. The second session will reconvene on March 10 and continue till April 4.