India Tax Reform Shock: New Income Tax Bill 2025 to Change Everything

Delhi - In a landmark move to transform India’s taxation system, the government has introduced the New Income Tax Bill 2025, replacing the outdated Income Tax Act of 1961. The new bill aims to simplify tax laws, making them easier to understand and comply with.  

One of the biggest changes is the introduction of a 'tax year,' which eliminates the old 'assessment year' concept. This shift is expected to streamline tax filing and reduce confusion. The bill also introduces stricter regulations for virtual digital assets like cryptocurrencies and NFTs, treating them similarly to undisclosed income such as cash and bullion.  

Another major highlight is the reduction of legal complexity. The bill cuts down the length of tax laws from 823 pages to 622 pages, removing outdated provisions and simplifying tax rates. The language has also been made more concise to improve clarity.  

The government believes these reforms will encourage voluntary tax compliance and make tax filing more efficient. The bill is now set for discussion in Parliament, where it may face further scrutiny and amendments. However, if passed, it promises a new era of transparency and simplicity in India’s tax system.