Will new Income Tax Act make things simpler for taxpayers? Experts weigh in

Income Tax Act 2025: The new legislation (IT) received the president’s consent on Friday. The revised legislation is a simpler and refined version of the existing Income Tax Act, 1961. When Finance Minister Nirmala Sitharaman announced the new Income Tax (IT) Act during the Budget speech on February 1, 2025, she said that the new income tax Bill of Income Tax will transfer the same spirit of Nyaya (Justice). “The new bill will be clear and direct in text, with almost half of the current legislation, with regard to chapters and words. It will be easy to understand for taxpayers and tax administration, leading to tax security and reduced litigation,” she said during the budget speech in parliament. The new law differs from the existing one on different scores. It is concise, with fewer words and tax terms. The number of divisions has been reduced from 819 to 536. Now the taxpayers do not have to refer too much. It also carried away the previous and assessment year and replaced it with IT ‘tax year’. We talked to some experts to find out if their expectations are meeting the new legislation. Easy language, although there is no doubt that the language of the law is simple, the law, according to experts, did not undergo a change. Aarti Raote, partner, Deloitte India, said: ‘The purpose of the new tax bill is to make the income tax simple, remove mistakes and make it easier to implement. For salary taxpayers, there is no major change, except to rearrange the relevant sections in a simpler format. There is, of course, an extension of the deduction period. ” On Yadav, tax evangelist at Prosperr.io and former chief commissioner of income tax, said the new Income Tax Act is simpler, but it makes no new policy announcements. Is the law simpler? In addition, the new tax law has phased out excess provisions and the word count is finished, but does it make the tax law easier to comply? “In general, the number of divisions has been reduced. That said, these improvements are largely structural and linguistic. Although it makes the law easier to read and refer, they do not simplify the process of applying or interpreting the law in practice – as opposed to the most important brightness reached at the launch of GST,” says Chandni Anandan, tax expert. Rohinton Sidhwa, partner, Deloitte India, says: “The bill drastically reduces the number of sections (from 819 in the 1961 Act to 536), argues archaic language and streamlined the act for easier reading and fewer deaths. The tax of cryptocurrencies and virtual digital assets). There are also ‘zero’ TCs on Liberalization Scheme (LRs) for the breeding education, added by financial institutions, and it is a preliminary and more flexible for students, and it is a little flexible for students, and it is a little flexible for students, and it is a preliminary and more flexible students and it is a preliminary and more flexible and more flexible students and It is a preliminary and more flexible students, and it is a preliminary and more flexible students, and it is a preliminary and more flexible students, and it is a preliminary and more flexible students, and it is a preliminary and more flexible students, and it makes it just as flexible for students. Visit here for all personal financing stories