New Delhi: After providing a big relief to the Indian middle class in the Union Budget 2025-26, the Central government is all set to present a new Income Tax Bill this week which would further simplify the entire tax system, bringing sweeping reforms.

The current Income Tax Act was enforced in the country in 1961 and now, the new Income Tax Act is being made according to the needs of the 21st century to replace the existing law, according to sources close to the development.

While presenting the budget in Parliament, Union Finance Minister Nirmala Sitharaman said the country needs a new Income Tax regime and a Bill for this would be introduced in this session -- in all likelihood on Thursday.

A review committee was formed for the new Income Tax law in the country to replace the earlier cumbersome law. According to sources, the new Income Tax Bill has been prepared by the government on the recommendation of the committee. In this era of technology and massive digitalisation, taxpayers can perform several things online on his or her own. In such a scenario, there will be smooth changes in the new I-T Bill for the common man who can understand it seamlessly online. This is an attempt to make the system simple and convenient for common people.