Old Income Tax Act 1961 vs New Income Tax Bill 2025

The Income Tax Act, 1961 (ITA 1961) and the Income Tax Bill 2025 (when passed) would represent two distinct milestones in India’s tax system.

While the Income Tax Act 1961 has been the core legislation governing taxation in India for decades, the 2025 bill is expected to bring a modernized structure and provisions in line with contemporary economic realities. If passed in the Parliament, it will become effective from FY 2026-27.

Here’s a comparative analysis based on potential changes expected from the proposed 2025 bill and the current framework of the 1961 Act.