<h1>New Income Tax Bill 2025 Cuts Sections, Simplifies Laws, Keeps Tax Rates Unchanged from April 2026</h1> Parliament enacted a new Income Tax Bill, 2025, replacing the Income Tax Act of 1961, effective April 1, 2026. The legislation simplifies tax laws by reducing sections from 819 to 536 and chapters from 47 to 23, eliminating outdated provisions, and introducing tables and formulas to improve clarity without changing tax rates. The bill aims to enhance ease of understanding and implementation. Alongside, the Taxation Laws Amendment Bill, 2025, was passed, amending provisions related to block assessments and providing tax benefits to certain public investment funds. The government emphasized no increase in tax burden and highlighted ongoing efforts to issue guidance and update administrative systems for the new law's implementation. The bills were passed despite opposition members boycotting debates. The legislation reflects a significant modernization of the country's tax framework.