New Delhi, Aug. 7 -- The Union cabinet is likely to consider the Income Tax Bill, 2025 on Friday to reintroduce and pass it in Parliament next week, two persons familiar with the development said. The Bill seeks to replace the six-decade-old direct tax law with a simplified statute.

The Lok Sabha is likely to discuss the Bill on Monday or Tuesday for passage, the persons said, speaking on the condition of not being named. The government intends to implement the simplified law from the next financial year.

The revised Bill incorporates suggestions from the Lok Sabha select committee led by Bharatiya Janata Party lawmaker Baijayant Panda. The panel carefully scanned the earlier draft to ensure that the simplification exercise did not lead...