The new Income Tax Bill, 2025, received parliamentary approval on Tuesday after the Rajya Sabha passed the legislation, following its clearance by the Lok Sabha a day earlier.
The government has introduced the bill to replace the six-decade-old Income Tax Act of 1961 with new legislation.
Finance Minister Nirmala Sitharaman tabled two financial bills in Parliament - The Income Tax Bill, 2025, and The Taxation Laws (Amendment) Bill, 2025.
The Rajya Sabha returned the legislation to the lower house through a voice vote, as reported by the news agency PTI.
Finance Minister Nirmala Sitharaman stated that certain provisions of the Income Tax Act, 1961, had become outdated, necessitating new legislation.
The Finance Minister explained that the new tax law has been introduced to simplify the language of the legislation rather than to introduce any new rates.
"I am shocked that the Opposition doesn't want to participate," she remarked.
