India’s Finance Minister Nirmala Sitharaman is set to table the much-anticipated new Income Tax Bill in the Lok Sabha today. The bill, which spans 622 pages, introduces a fresh ‘tax year’ concept set to take effect from April 1, 2026. While no major structural changes have been made, the bill aims to simplify language and remove unnecessary provisions, making tax compliance easier for citizens and businesses alike.

As per the agenda circulated by the Lok Sabha Secretariat on Wednesday, the bill will be sent to the Parliamentary Standing Committee on Finance for further review after its introduction. The new legislation consists of 23 chapters, 536 sections, and 16 schedules. Despite having more sections compared to the older law, the bill is significantly shorter due to the elimination of redundant clauses and legal jargon.

The previous Income Tax Act contained 298 sections and 14 schedules but extended over 880 pages. The new bill maintains continuity with existing tax structures while enhancing readability and clarity. No new taxes have been introduced under the proposed reforms.

The introduction of the new Income Tax Bill aligns with the government’s broader efforts to modernise and streamline India’s tax framework. The simplification of language and reduction of unnecessary provisions are expected to improve tax compliance and reduce litigation.

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