Income Tax Bill 2025: Will taxpayers need new compliance training? Here's what the govt says

The Income Tax Bill 2025 has reorganised various sections of the Income Tax Act, 1961 to make the tax provisions clear and unambiguous.

Since the introduction of the tax bill in the Parliament, there have been speculations that taxpayers, including tax professionals and businesses, may have to undergo fresh compliance trainings to understand its various provisions. However, the government says no such activity would be required.

"Reorganisation of sections in the Income-tax Bill, 2025 has been done to facilitate ease of reference and provide a legal framework for implementing direct tax policy that is simple, clear and unambiguous,” Pankaj Chaudhary, the minister of state in the Ministry of Finance, said in a written reply to a query in the Lok Sabha on Monday (March 10, 2025).

“This reorganisation of sections is not expected to require businesses and professionals to undergo any new compliance training. In fact, it is expected to make compliance easier for the ordinary taxpayer," he added.

What is the purpose behind the new bill?

According to Chaudhary, the purpose behind the introduction of the Income-tax Bill is to simplify the existing Income-tax Act, 1961 by making it concise, lucid, easy to read and understand.

The minister said that the new bill has taken the following measures to minimise the "scope of unintended ambiguity" that may lead to fresh interpretations and litigation:

• Key words/phrases, especially where courts have given rulings, have been retained with minimal modifications, and language has been simplified by use of short sentences.

• Provisions have been made clear to minimise scope for multiple interpretations. The provisos and explanations have been removed and simplified content has been placed as sub-sections and clauses.

• Formulae and tables have been used to enhance clarity.

• Provisions involving the same issues and definitions, which were present in different chapters in the existing Act have been consolidated.

The new bill will come into effect from April 1, 2026. It has incorporated all amendments proposed up to Finance Bill 2025. It has also retained all existing technological reforms such as pre-filled ITRs, Annual Information Statement, faceless proceedings, e-filing of various forms etc.

"It is expected that the changes proposed in the structure of the Bill, and efforts undertaken to make the provisions in the Bill concise, lucid, easy to read and understand (as noted above) shall act as a nudge towards increased taxpayer compliance," said Chaudhary.