New Delhi, Feb. 17 -- On February 13, Finance Minister Nirmala Sitharaman introduced the Simplified Income Tax Bill 2025 in the Lok Sabha. Once passed, the Bill will replace the 64-year-old Income Tax Act. The new Bill spans 2.6 lakh words and consists of 536 sections, with the number of chapters reduced to 23.

The government has also released a set of FAQs addressing key concerns, ensuring transparency and ease of compliance for taxpayers.

Shefali Mundra, Tax Expert, at ClearTax, said there are several provisions under the Income Tax Bill 2025, the important ones are:

A 'tax year' is a period of twelve months contained in a financial year. It replaces the term 'previous year' used in the Income-tax Act of 1961. Further, with the disco...