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Income-tax Bill, 2025, tabled in Parliament, towards achieving comprehensive simplification of the Income-tax Act, 1961
The Income-tax Bill, 2025, tabled in Parliament, aims to simplify the Income-tax Act, 1961. The government engaged with stakeholders, receiving 20,976 online suggestions, incorporating relevant ones.
The Bill focuses on three core principles: simplifying language and structure for clarity, maintaining tax policy continuity without major changes, and preserving predictable tax rates.The simplification has significantly reduced the Act’s size, with a reduction of 252,859 words. Key qualitative improvements include simplified language, consolidated amendments, and removal of obsolete provisions, ensuring clarity and ease of use while maintaining the existing taxation principles for continuity.
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