Income Tax Act 1961 to be replaced by a new lawThe Income Tax Bill 2025 approved by the Rajya Sabha on Tuesday August 12, 2025 is set to replace more than six decades old Income Tax Act 1961Tuesday August 12, 2025 11:50 PM , ummid.com News NetworkNew Delhi: The Income Tax Bill 2025 approved by the Rajya Sabha on Tuesday August 12, 2025 is set to replace more than six decades old Income Tax Act 1961. Along with the new Income Tax Bill, Sitharaman also introduced The Taxation Laws (Amendment) Bill 2025. The new IT bill passed by the Parliament will become an Act and replace the Income Tax Act 1961 once it is signed by the President of India. Speaking in the Parliament, Sitharaman said some provisions of the Income Tax Act 1961 were “outdated” and hence a new law was necessary. The Narendra Modi government had in the last week formally withdrew the Income Tax Bill 2025, which was initially introduced in the Lok Sabha on February 13 to replace the existing Income Tax Act, 1961.