Parliamentary Panel to Present Income Tax Bill 2025 Report in Lok Sabha on July 21

Speedy Summary

• Income Tax Bill, 2025: Union Finance Minister Nirmala Sitharaman introduced the new Income Tax Bill in Lok Sabha on February 13, aiming to replace the old Income Tax Act of 1961.
• Select Committee Report: A parliamentary committee chaired by BJP leader Baijayant Panda has scrutinized the bill.Their report, containing 285 suggestions, will be tabled in Lok Sabha on july 21 during the Monsoon session (July 21 – august 21).
• Simplified Structure: The new bill is significantly condensed:

– word count reduced from 5.12 lakh to 2.6 lakh.
– Total sections decreased from 819 to 536; chapters reduced from 47 to just 23.
– previous complexities like exemptions and TDS/TCS provisions have been streamlined using tables (57 tables compared to existing law’s only18 tables).
– Removed concepts of ‘previous year’ and ‘assessment year,’ replacing them wiht a unified term ‘tax year.’
– Comprehensive chapter added for not-for-profit organizations with simplified language.

• Taxpayer-pleasant Reforms: Ample changes aim at greater clarity and minimization of litigation by reducing provisos (1,200 removed) and explanations (900 removed).

Indian Opinion Analysis

The introduction of the Income Tax Bill,2025 represents a significant attempt at simplifying India’s complex tax legislation dating back over six decades.The effort to reduce its wordcount nearly half Dstreamline both provisions/or accessible.shared