Overview

• The government has confirmed that the Income Tax Bill, 2025 will be formally introduced in Parliament on August 11 after a select committee review.
• The proposal condenses the 1961 Act’s 47 chapters and 819 sections into 23 chapters and 536 sections, cutting the word count by nearly half to roughly 260,000 words.
• To improve readability, the draft law expands structured guidance from 18 to 57 tables and from 6 to 46 formulae in place of dense legal prose.
• Under core principles of textual simplification, policy continuity and rate stability, the bill retains existing tax slabs and major policy settings.
• The Central Board of Direct Taxes has begun drafting detailed operational rules and AI-powered manuals to prepare for the framework’s April 1, 2026 rollout.