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New Income Tax Bill Tabled in Lok Sabha to Replace 1961 Law

The government has tabled the Income Tax Law and Administration (ITLA) Bill in the Lok Sabha, starting the process of replacing the six-decade-old Income Tax Act of 1961.

The bill aims to simplify India’s tax code, which has grown complex through thousands of amendments over 60 years. Officials say the new law uses clearer language, shorter sentences and a modern structure designed to reduce disputes between taxpayers and the department.

Key changes include simplified provisions for individuals and businesses, fewer exemptions hidden in fine print, and updated rules for digital-age income. The government says honest taxpayers should face fewer notices and faster refunds.

The bill will now go to a parliamentary committee for detailed scrutiny before returning for a final vote. Opposition members have asked for enough time to study the draft, given its scale.

Tax experts say the real test will be implementation. A simpler law on paper must be matched by fairer assessments and quicker grievance redressal. If that happens, the ITLA could become the most significant tax reform since GST.

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