Parliamentary Panel Approves Income Tax Bill 2025 with 285 Amendments for Monsoon Session

Fast Summary

• The Select Committee of Parliament on the Income Tax Bill-2025 finalized its report with 285 suggestions for changes to the proposed legislation.
• The committee, led by BJP MP Baijayant Panda, is expected to submit its report during the upcoming Monsoon Session of Parliament.
• The Income Tax Bill, 2025 was introduced in Lok Sabha on February 13, 2025, and referred to the Select Committee on the same day.
• Finance Minister Nirmala Sitharaman stated that a complete review of the Income Tax Act, 1961 was announced in Budget 2024 to replace and streamline outdated provisions.
• Concerns raised include complexity arising from repeated amendments over decades that have hampered tax compliance and administration efficiency.
• Opposition members have voiced apprehensions about certain provisions potentially enabling misuse of power by authorities.

indian Opinion Analysis

The overhaul of India’s income tax law through the proposed Income Tax Bill, 2025 represents notable reform aimed at simplifying compliance and improving administrative efficiency. By addressing long-standing issues stemming from years of amendments to the existing framework since its passage in 1961, this effort seeks to modernize taxation while reducing bureaucratic burdens for taxpayers.

The finalization of recommendations by a Select Committee signals progress; however, opposition concerns over potential misuse highlight challenges in ensuring checks-and-balances are embedded within such sweeping legislative changes. moving forward into parliamentary debates during the Monsoon Session will likely reveal how consensus may be shaped around these reforms while mitigating risks associated with power concentration within enforcement mechanisms.

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