The Income-tax Act was enacted in 1961, effective from April 1, 1962, and has been amended nearly 65 times with over 4,000 changes through Finance Acts. However, it became bulky over time due to its drafting style, numerous amendments, changing tax priorities, the added explanations for legal clarity, and retention of non-operational provisions due to pending claims. There were concerns, too, ranging from unnecessary amendments and complex language to redundant provisions and the Act's overall heaviness. Key Changes The new Income Tax Bill simplifies the complex Income Tax Act of 1961 by making it more concise, clear, and user-friendly, aiming for a streamlined tax system. Below are the key changes and processes involved. Conclusion The new Income Tax Bill simplifies the 1961 Act by focusing on clarity, reduced complexity, and ease of compliance, while maintaining essential provisions for continuity. It represents a significant improvement in the structure and user-friendliness of India’s tax laws.Original Article