The Income-Tax Bill, 2025, tabled in Lok Sabha on February 13, 2025, aims to replace the Income-Tax Act, 1961, modernizing tax administration without overhauling core structures. Effective April 1, 2026, it simplifies language, retains tax slabs and rates, and strengthens digital governance. Key features include faceless tax schemes, expanded definitions of undisclosed income to cover VDAs like crypto, and powers to access virtual digital spaces during searches. It refines dispute resolution panels and clarifies tax treaty interpretations. The bill balances tradition with technological innovation, ensuring clearer rules and tighter compliance in a digital economy.
