Date:- 21.08.2025
Bill No.:- 2/2025 introduced on 13.02.2025.
The Income-Tax Bill, 2025 was introduced in Lok Sabha on February 13, 2025. It seeks to replace the Income-Tax Act, 1961. The Bill retains most of the provisions of the 1961 Act. The Bill got President Droupadi Murmu’s assent on 21.08.2025.
Key Takeaways:-
- New Income Tax Act, 2025 would replace the 1961 Act after more than 60 years.
- Now, The government can frame new schemes for transparent and efficient tax assessments by eliminating physical interface, scaling operations through technology, and enabling functional specialisation. All such schemes will be laid before Parliament.
- Now, the definition of “undisclosed income” expanded to cover Virtual Digital Assets (VDAs) like cryptocurrencies, tokens, and cryptographically generated codes.
- Now, tax authorities can now access emails, social media, trading accounts, and other online assets during searches, override passwords, and use the newly defined concept of “virtual digital space.”
