The Rajya Sabha on Tuesday returned the modified Income Tax Bill, along with the Taxation Laws (Amendment) Bill, 2025, to the Lok Sabha as part of the parliamentary procedure.

"The largely dense and complex structure of the Income Tax Act, 1961, resulted in various interpretations, and several avoidable disputes kept mounting, not so much because of the rate, but because of the language. We were subjected to too many litigations. The density and complexity of the Act, along with the verbose way it was written over the decades, with different styles dominating, made the Act very, very tedious for anyone to use," Finance Minister Nirmala Sitharaman said in the upper house during the discussion.

With the Rajya Sabha returning the Bill to the Lok Sabha with a voice vote, it has now been approved by Parliament and will be sent to the President for assent to become an Act, which will replace the over six-decade-old Income Tax Act, 1961.