New Delhi, 22 Aug

President Droupadi Murmu has given her assent to the Online Gaming Bill and the Income Tax Act, 2025, marking significant legislative reforms in India.

The Promotion and Regulation of Online Gaming Bill, passed by Parliament, aims to ban all forms of real-money games while promoting e-sports and online social gaming. Both Houses cleared the legislation in response to concerns regarding the negative societal impacts of online money gaming.

Prime Minister Narendra Modi stated, “This Bill highlights our commitment towards making India a hub for gaming, innovation and creativity. It will encourage e-sports and online social games,” while emphasizing its role in safeguarding society from online money gaming's harmful effects.

Electronics and IT Minister Ashwini Vaishnaw termed online money game a "public health risk," claiming it has led to addiction and financial ruin for millions. “It is estimated that 45 crore people are affected by it, and more than Rs 20,000 crore has been destroyed in it,” he said, referencing the serious implications for middle-class youth and families.

The Income Tax Act, 2025 will replace the out-dated Income Tax Act, 1961, and will come into effect from 1 April, 2026. This reform aims to simplify tax laws by reducing its complexity and word count.

The new Act does not impose any new tax rate and only simplifies the language, which was required for understanding the complex Income Tax laws. The new law removes redundant provisions and archaic language and reduces the number of Sections from 819 in the Income Tax Act of 1961 to 536 and the number of chapters from 47 to 23.

The Income Tax Department heralded it as a "landmark reform," stating it would enhance transparency and compliance without imposing new tax rates. The Act reduces sections from 819 to 536 and word count from 5.12 lakh to 2.6 lakh, introducing new tables for improved clarity. -Agencies