Lok Sabha passed—Income-Tax (No.2) Bill, 2025 & Taxation Laws (Amendment) Bill, 2025

Current Context: On August 11, 2025, the Lok Sabha passed two major bills—Income-Tax (No.2) Bill, 2025 and Taxation Laws (Amendment) Bill, 2025—via voice vote, marking a major overhaul of India’s direct tax regime.

• Introduced by Finance Minister Nirmala Sitharaman, the Income-Tax (No.2) Bill aims to replace the Income Tax Act, 1961 with a simplified, modern framework based on the SIMPLE principles (Streamlined, Integrated, Practical, Learnable, Efficient).
• It incorporates 285 recommendations from the Parliamentary Select Committee and simplifies compliance, refunds, and exemptions.
• The Taxation Laws (Amendment) Bill provides tax benefits to Unified Pension Scheme (UPS) subscribers, streamlines block assessment procedures, and extends direct tax exemptions to Saudi Arabia’s Public Investment Fund.
• Both bills now await Rajya Sabha approval and Presidential assent to become law.

Question:

Q.1 The SIMPLE principles in the Income-Tax (No.2) Bill, 2025 stand for which of the following?
a) Strategic, Inclusive, Manageable, Progressive, Logical, Effective
b) Streamlined, Integrated, Practical, Learnable, Efficient
c) Streamlined, Integrated, Practical, Learnable, Efficient
d) Simplified, Innovative, Practical, Logical, Economical

Answer: c) The bill is based on SIMPLE principles — Streamlined, Integrated, Practical, Learnable, Efficient — aiming for easier compliance and better taxpayer experience.