Parliament has passed the new Income Tax Bill, 2025, with the Rajya Sabha returning the legislation to the lower house by a voice vote on Tuesday. The new bill will replace the existing Income Tax Act of 1961.
Finance Minister Nirmala Sitharaman, who introduced both the Income Tax Bill, 2025, and The Taxation Laws (Amendment) Bill, 2025, stated that the new legislation was necessary because parts of the 1961 Act had become outdated. She emphasized that the new law aims to simplify the language of the tax code without introducing any new tax rates.
Sitharaman criticized the opposition for not participating in the discussion on the important bills, despite having agreed to 16 hours of debate in the Business Advisory Committee of both the Lok Sabha and Rajya Sabha. Opposition parties had staged a walkout from both houses.
The Finance Minister also expressed her gratitude to the Select Committee of Parliament for scrutinizing the bill and noted that a total of 75,000 person-hours went into its drafting.