Revised Income Tax Bill, 2025

On August 11, 2025, the Lok Sabha passed the revised Income Tax Bill, 2025, without any debate amidst opposition protests. The bill aims to simplify, rationalize, and shorten the existing Income Tax Act, 1961, while also broadening the powers of income tax officials.

Key Features of the Revised Bill

• The bill reduces the word count from 5.12 lakh to 2.59 lakh words.
• The number of chapters has been reduced from 47 to 23.
• Sections have been reduced from 819 to 536.
• Increases the number of tables from 18 to 57 and formulae from 6 to 46 for greater clarity.
• Empowers officials to access personal emails and social media accounts during search operations.
• Allows officials to override access codes if not provided, to access electronic records.

Committee Recommendations and Modifications

• The initial version of the bill, introduced in February, was reviewed by a Select Committee.
• The government incorporated the committee's recommendations into the updated bill introduced on August 11, 2025.

Controversial Provisions

• Requires individuals in possession of electronic documents to assist officials by providing access codes.
• Justification: The Committee argues that incriminating evidence is often found in electronic records.
• Dissent: These provisions infringe on privacy rights.