Finance Minister Nirmala Sitharaman to unveil new Income Tax Bill next week

Finance Minister Nirmala Sitharaman to unveil new Income Tax Bill next week

Finance Minister Nirmala Sitharaman said that a new income tax bill will be announced next week. The bill would reflect the government’s decade-long efforts focused on enhancing taxpayer convenience.

She mentioned the tax department’s approach of “trust first, scrutinise later," assuring the government’s continued commitment to ease compliance.

"It will be simple to understand for taxpayers and reduce litigation," said Nirmala Sitharaman.

Sandeep Chilana, Managing Partner, CCLaw, said, “A complete overhaul of the Income Tax Act is a bold step, but the real question is whether it will truly simplify compliance or just reorganise complexities.”

“If the new law can bring predictability, reduce disputes, and ease tax administration, it will be a game-changer. However, businesses and professionals will be watching closely to see how it handles legacy issues like retrospective taxation, complex exemptions, and litigation-heavy provisions. The success of this reform will depend on how effectively it balances revenue needs with a taxpayer-friendly approach,” Chilana added.