New income tax bills may be filed in Parliament on August 11; Cabinet meeting on August 8
Sources told Zee Business that the central government may submit a new income tax bill to parliament on August 11.
They said the union cabinet may meet around 1 p.m. on Friday to discuss and possibly clear the bill.
The new Income Tax Act (scheduled to come into effect on April 1, 2026) aims to simplify existing laws by introducing clearer tax laws, reducing litigation, removing redundant provisions, rationalizing exemptions and simplifying digital income norms.
The bill reflects the Narendra Modi government’s commitment to increase business in the country through a simpler, clearer tax framework.
Key facts about income tax bills
In February, the bill was forwarded to the parliamentary panel after it was issued.
In July, the committee made recommendations in parliament.
The simplified income tax bill is set to half of the current legal scale, with a word count of about 260,000. In sharp contrast to the 819 parts in the existing law are 536 parts, including 23 instead of 47.
There are 57 tables in the new bill, not 18 tables in the law.
| thing | The existing income tax law in 1961 | Proposed in the Income Tax Act of 2025 | Change (reduce or increase) |
| Character | 5,12,535 | 2,59,676 | Restore: 252,859 words |
| chapter | 47 | twenty three | Reduction: Chapter 24 |
| part | 819 | 536 | Restore: 283 parts |
| surface | 18 | 57 | Addition: 39 tables |
| formula | 6 | 46 | Addition: 40 formulas |
The bill also contains many qualitative improvements, including better legal accessibility, amendment mergers, structural rationalization and preservation of existing tax principles.
Also read: Parliamentary Monsoon Meeting from July 21 to August 21; Tax Law, Manipur GST, 6 other new bills on the card
Parliamentary Monsoon Meeting
The current meeting begins on July 21 and will be recessed from August 12 to August 18 on August 21.
