• Source:JND
Add as a preferred

Finance Minister Nirmala Sitharaman announced on Tuesday that the new Income Tax Bill will be taken up for discussion in the monsoon session of Parliament. Responding to discussions on the Finance Bill 2025 in the Lok Sabha, she stated that the bill, introduced on February 13, is currently under review by a Select Committee. The committee is expected to submit its report by the first day of the next parliamentary session.

FM Sitharaman highlighted that the new legislation will recognise digital records for tax assessment, addressing a gap in the existing Income Tax Act of 1961. 

The current law permits the examination of physical books of accounts but does not explicitly include digital records.  This ambiguity has led to legal disputes, with individuals seeking protection against disclosing digital passcodes. The new bill aims to close this loophole, ensuring that digital records are considered valid.

ALSO READ: NEET Aspirant Dies By Suicide In Jodhpur, Leaves Emotional 'Sorry Note' Behind

One of the key provisions of the new bill grants tax officers the authority to override access codes of computer systems, virtual digital spaces and online accounts in search and seizure cases. Virtual digital space, as defined in the bill, includes email servers, social media platforms, online trading and investment accounts, cloud servers and digital application platforms used for storing ownership details of assets.

The new Income Tax Bill significantly simplifies the existing tax framework. It reduces the word count to 2.6 lakh from the 5.12 lakh words in the current Income Tax Act and cuts the number of sections from 819 to 536. Additionally, the number of chapters has been halved to 23 and the bill features 57 tables, up from 18 in the current law. The new legislation also eliminates 1,200 provisos and 900 explanations to minimize litigation and enhance clarity.

ALSO READ: Bollywood Actress Assaulted And Robbed Of Cash And Jewellery In Hyderabad Hotel

The monsoon session of Parliament, typically held from July to August, is expected to witness a comprehensive discussion on the proposed reforms, which aim to modernise the country’s tax system and enhance transparency.

(With PTI Inputs)