New Income Tax Bill Cuts Half The Sections; Report With 285 Changes To Be Tabled In Lok Sabha On Monday

A awesome overhaul of India's taxation model is group to move guardant arsenic nan study of nan parliamentary committee reviewing nan caller Income Tax Bill, 2025 will beryllium tabled successful nan Lok Sabha connected Monday. The bill, which intends to switch nan six-decade-old Income Tax Act, 1961, proposes a complete structural rewrite of taxation law, pinch less sections, simpler language, and a caller compliance framework.

The 31-member Select Committee, chaired by BJP leader Baijayant Panda, was appointed by Lok Sabha Speaker Om Birla to scrutinise nan measure aft it was introduced by Finance Minister Nirmala Sitharaman connected February 13. The sheet adopted its study connected July 16, incorporating 285 suggestions.

The simplified measure is designed to trim ambiguity and litigation by utilizing plain connection and a restructured format. According to nan FAQs issued by nan I-T department, nan measure has a connection count of 2.6 lakh — down from 5.12 lakh successful nan existing rule — and reduces nan number of sections from 819 to 536. It besides cuts nan number of chapters successful half, from 47 to 23.

The Income Tax Bill, 2025, has expanded tabular formats to explain exemptions and TDS/TCS rules — now dispersed crossed 57 tables, up from 18. It eliminates 1,200 provisos and 900 explanations, and streamlines connection successful areas for illustration not-for-profit organisations.

In a important displacement for taxpayers, nan measure besides proposes replacing nan conception of 'assessment year' and 'previous year' pinch a unified 'tax year'. Currently, taxation is paid successful nan appraisal twelvemonth for income earned successful nan erstwhile twelvemonth — for example, income earned successful 2023–24 is taxed successful 2024–25. The caller building eliminates this dual reference.

While introducing nan measure successful Parliament, Sitharaman had said: "Substantial changes person been made successful nan Bill. The number of words person been halved from 5.12 lakh, and sections reduced from 819 to 236."

Following its introduction, nan Bill was referred to nan Select Committee, which was directed to taxable its study by nan first time of nan adjacent parliamentary session. The Monsoon Session of Parliament originates July 21 and will tally done August 21, 2025.
 

Published on: Jul 20, 2025 1:07 PM IST