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Aug 02, 2025
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New tax rules from 2026? 5 changes in Income Tax Bill that make it different from existing law
New Income Tax Bill, 2025: The Centre has taken a big step towards making the tax system simple and transparent in the country. The Modi government introduced the ‘Income Tax Bill, 2025’ in Parliament during the budget session this year to replace the existing Income Tax Act, 1961. This Bill, after being introduced in the Lok Sabha in February this year, was sent to the Select Committee of the Lok Sabha. The panel recently submitted an over 4,500-page report with observations and suggestions on the Bill to the government.
Now, the government has plans to table the Bill in the ongoing monsoon session of Parliament on August 11. Experts are of the view that this Bill once passed will be the biggest change in India’s tax system after decades.
Here are 5 major changes in the Income Tax Bill, 2025
1. Number of chapters reduced to 23
The existing Income Tax Act, 1961 has a total of 47 chapters, which became very complex due to multiple amendments. In the new Bill, the number of chapters has been reduced to only 23, making it easier to read and understand. This change is a relief especially for taxpayers and professionals.
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