Union Cabinet approved the new income tax bill

Current Context: The Union Cabinet approved the new Income Tax Bill 2025 on February 7, 2025. This bill aims to replace the Income Tax Act of 1961 and simplify the tax system. 

• Key details include:
• Simplified Legal Language: The new bill will use clearer and more concise language to make it easier for taxpayers to understand.
• Reduction in Length: The bill will be about 50% shorter than the existing one, reducing legal complexities and potential disputes.
• No New Taxes: The bill will not introduce any new taxes but will focus on simplifying existing tax laws.
• Implementation Timeline: The new law is expected to come into effect from the financial year 2025-26.

Question:

1 When did the Union Cabinet approve the new Income Tax Bill 2025?

• A) January 15, 2025
• B) February 7, 2025
• C) March 1, 2025
• D) April 10, 2025

Answer: B) The Union Cabinet approved the new Income Tax Bill 2025 on February 7, 2025, as part of an effort to simplify tax laws by replacing the Income Tax Act of 1961.