The Union finance minister says in the Lok Sabha that ‘substantial’ changes are being made to the Income Tax Act 1961.

The current Income-tax Act was enacted in 1961 and came into existence with effect from April 1, 1962. It has been amended nearly 65 times with more than 4,000 amendments."

Finance minister Nirmala Sitharaman defended the income tax relief for the 2025-26 budget, highlighting its benefits for all income groups, with higher savings for lower earners. She introduced a bill to simplify the tax regime,

Finance Minister Nirmala Sitharaman presented the new Income Tax Bill In Lok Sabha on Thursday, which will replace the Income Tax Act, 1961. The finance minister said, "We are reducing the number of income tax sections to 536." She added that substantial changes are being made to the income tax bill, with a reduction in the number of chapters.

The new Income Tax Bill 2025 was tabled in the Lok Sabha on February 13, following which the Opposition MPs staged a walkout.

Following cabinet approval, the new Income Tax Bill was introduced in Parliament on Thursday by Nirmala Sitharaman. This bill replaces the Income Tax Act of 1961 and aims to simplify India's tax system.