New Delhi, Aug. 12 -- The Rajya Sabha on Tuesday passed the Income Tax Bill, 2025, a day after the Lok Sabha cleared it, paving the way to replace the previous six-decade-old law.

It now awaits President Droupadi Murmu's assent. Once signed, the new law will come into effect from 1 April 2026.

The Bill is the revised version of the previously introduced Income Tax Bill 2025, which was withdrawn to address various anomalies, inconsistencies, and drafting errors. It will replace the Income Tax Act, 1961.

Speaking at the Rajya Sabha on the revised Bill, finance minister Nirmala Sitharaman said the new law, first announced in the July 2024 budget, is designed to be concise, lucid, and taxpayer-friendly, eliminating outdated provisions and ...