New Income Tax Bill 2025 to be discussed in monsoon session of Parliament: FM Nirmala Sitharaman
Finance Minister Nirmala Sitharaman reassured that the government is focused on tax certainty and making business regulations smoother as part of its broader vision to build a Viksit Bharat by 2047.
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Union Finance Minister Nirmala Sitharaman has announced that the new Income Tax Bill will be taken up for discussion during the monsoon session of Parliament. While speaking in Parliament on Tuesday, she also discussed the Finance Bill 2025, highlighting how it aims to provide major tax relief to taxpayers.
The new bill, tabled in the Lok Sabha on February 13, is set to replace the Income Tax Act of 1961. It introduces key changes for individuals, businesses, and non-profits. The government had earlier proposed a complete overhaul of the old tax law to make it simpler and reduce legal disputes. To ensure public participation, the Centre invited stakeholders to share their suggestions on the bill on March 18. Right now, the bill is being reviewed by a Select Committee.
Sitharaman reassured that the government is focused on tax certainty and making business regulations smoother as part of its broader vision to build a Viksit Bharat by 2047. "The Budget aims to do reforms to build Viksit Bharat by 2047. It aims to provide tax certainty, reforms on ease of doing business also we will have a new Income Tax Bill which is currently with a special Committee. This Bill is not brought as part of Finance Bill," Sitharaman stated.
New Income Tax Bill: Key tax reforms and policy changes
1. Lower customs duties: The number of tariff slabs on industrial goods has been cut down from 21 to just 8.
2. Cess or surcharge rule: Now, only either a cess or a surcharge—not both—can be applied on an item.
3. Religious offerings exempt from GST: Prasadams from temples, mosques, churches, and gurudwaras will not be taxed. A group of ministers is also reviewing a possible GST reduction on ingredients used to prepare them.
4. Tax exemptions on rare disease drugs: Imported medicines for rare diseases, whether brought in by individuals or research organisations, will be exempt from IGST.
5. Boost for manufacturing & exports: Customs policies are being adjusted to encourage domestic production, reduce costs for manufacturers, and make Indian products more competitive globally.
Also Read: Top 5 last-minute income tax saving tips before March 31 deadline: Here’s all you can do
The monsoon session of Parliament, usually held from July to August, will see detailed discussions on this new bill. The revamped tax law is much more streamlined than its predecessor:
- Word count cut down from 5.12 lakh to 2.6 lakh
- Sections reduced from 819 to 536
- Chapters reduced from 47 to 23
- Now structured with 57 tables instead of 18
- 1,200 provisos and 900 explanations removed for better clarity
(With inputs from agencies)
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01:22 PM IST
New Income Tax Bill 2025: What changes, what remains, and how it may impact taxpayers
