New Income Tax Bill 2025 Simplifies Law, Reduces Sections, and Modernizes Tax Rules Effective April 2026

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....Parliament has enacted a new Income Tax Bill, 2025, to replace the Income Tax Act of 1961, effective April 1, 2026. The new legislation does not alter tax rates but simplifies and modernizes the law by reducing sections from 819 to 536 and chapters from 47 to 23, while cutting the word count by nearly half. It introduces tables and formulas to enhance clarity and ease of understanding. The bill aims to streamline tax administration without increasing tax burdens. Alongside, the Taxation Laws (Amendment) Bill, 2025, was passed, amending provisions related to block assessments and extending tax benefits to certain foreign public investment funds. The government is preparing supplementary materials and rules to support implementation, and the .........