Income Tax Dept releases FAQs on new Income Tax Bill, 2025: Check details
Income Tax Department has released frequently asked questions (FAQs) about the new Income Tax Bill, 2025. The FAQs are released to give tax experts and common man abiut why the new Income Tax Bill is being brought, what has changed in the new Income Tax Bill and what remains unchanged. The FAQs will also help taxpayers to understand how big the current Income Tax Act is and how new Income Tax Bill simplifies it.
Frequently Asked Questions (FAQs) about Income Tax Bill, 2025
Q1 When was the current Income-tax Act passed?
Ans: The current Income-tax Act was enacted in 1961 and came into existence with effect from 01.04.1962. It has been amended nearly 65 times with more than 4000 amendments, year on year through Finance Acts, based on the evolving requirements of modifications in taxation policy.
Q2 Why does the new Bill still contain 536 sections and 2.6 lakh words?
Ans: While the existing Income-tax Act contains 298 numbered sections, effective sections in the current Act are 819. This is because other than numeric section numbers there are large number of sections with alpha-numeric codes such as 115A to 115WM (117 sections) and so on. The Income-tax Act not only deals with levy of tax but it is a comprehensive document, which encompasses all aspects of tax administration. It also includes other aspects such as:
(a) laying down the administrative framework, assigning roles and responsibilities for assessing officers, taxpayers, tax deductors, and professionals etc; (b) setting out the framework for income
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