Ashish Pandey 
The Income Tax Bill 2025, a document of 622 pages comprising 536 sections and 23 chapters, is anticipated to be introduced in the Lok Sabha on Thursday, February 13, 2025.
Once enacted, the proposed bill will replace the six-decade-old Income Tax Act of 1961, which has become increasingly complex and cumbersome due to numerous amendments.
One of the key changes in the new law is replacing the term “previous year” in the Income Tax Act, 1961, with “tax year.” Additionally, the concept of an “assessment year” has been eliminated. Currently, tax for income earned in the previous year (e.g., 2023-24) is paid in the assessment year (e.g., 2024-25). The new bill simplifies this structure by introducing a single “tax year.”
