Continuity assured: Impact on tax planning to be minimal

Simplification will bring clarity, but lack of meaningful concessions may disappoint some

- SANJEEV SINHA

The original Income Tax (I-T) Bill, 2025, introduced in February 2025, was withdrawn on August 8, 2025, due to concerns over certain provisions. A revised version, incorporating the recommendations of a Parliamentary Select Committee, was reintroduced in the Lok Sabha on August 11 and passed on the same date. The Rajya Sabha cleared it on August 12. The Bill now awaits Presidential assent and will come into effect from April 1, 2026. Here's a look at what it means for taxpayers.

Easier to comprehend tax laws The hallmark of the new I-T Bill is simplification. "The new I-T Bill, 2025, is concise, lucid, and easy to read and understand. It has simplified the language to make the law more accessible," says Mrinal Mehta, joint secretary, Bombay Chartered Accountants' Society.

Amendments have been consolidated, complex rules streamlined, and redundant provisions eliminated, resulting in greater clarity. The total number of sections has been reduced from 819 to 536, with 57 tables and 46 formulae added for easier comprehension.

"Simpler language and standardized procedures are likely to reduce disputes between taxpayers and the tax department," says Suresh Surana, a Mumbai-based chartered accountant.

The new Bill expands the definition of undisclosed income to include virtual digital assets. It also codifies a taxpayer charter to safeguard taxpayers' rights and ensure accountability of tax authorities.