India: Proposed legislation to replace Income-tax Act, 1961

Seeks to simplify the existing tax legislation

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February 13, 2025

The Finance Minister introduced the Income-tax Bill, 2025 in Parliament, which would replace the Income-tax Act, 1961 and become effective on April 1, 2026.

The new bill seeks to simplify the existing tax legislation by consolidating similar provisions, removing outdated sections, and using a tabular format for some information. Notably, it eliminates the concept of an assessment year, reclassifying the previous year as a tax year, and restructures “explanations” and “proviso” as sub-sections.

Read a February 2025 report prepared by the KPMG member firm in India

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