A COMPARATIVE STUDY OF THE INCOME TAX ACT, 1961 AND THE NEW INCOME TAX BILL 2025

AUTHOR – JOSHNA JOY, STUDENT AT AMITY UNIVERSITY, NOIDA

BEST CITATION – JOSHNA JOY, A COMPARATIVE STUDY OF THE INCOME TAX ACT, 1961 AND THE NEW INCOME TAX BILL 2025, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (4) OF 2026, PG. 491-506, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

This research explores a comparative examination of the Income Tax Act of 1961 and the recently launched Income Tax Bill of 2025.The aim is to analyse and clarify the alterations in the definitions, extent and amendment under both sets of laws. The aim is to thoroughly evaluate the changes introduced by the 2025 Bill. The major point of this study is that Income Tax Bill,2025 aims to streamline and update taxation, tackling the complexities and uncertainties found in the 1961 Act. The bill seeks to enhance clarity by revising definitions, broadening relief options for certain allowances and arrears and adding new clauses that reflect modern employment practices and technological developments. Anticipated results consist of a clearer comprehension of the legal and administrative changes affecting taxpayers and tax agencies, emphasized practical consequences for tax adherence and policy implementation. The research aims to enrich academic discourse by identifying aspects where additional legislative improvements could boost efficiency and fairness for taxpayers, thus facilitating informed choices in tax management and reform policy.

KEYWORDS: Income Tax Act 1961,Digital Taxation, Income Tax Bill 2025,BEPS Compliance, Tax Policy Modernization