NEW DELHI: Union Finance Minister Nirmala Sitharaman was all set to introduce revised Income Tax Bill 2025 in the Lok Sabha on Monday.
The updated Income Tax Bill 2025 incorporates 285 suggestions from the Parliamentary Select Committee. The new legislation aims to simplify tax processes and address previous shortcomings, potentially reshaping the income tax landscape in the country.
Last week, the Income Tax Bill, 2025, which was introduced in the Lok Sabha on February 13 to replace the existing Income Tax Act, 1961, was formally withdrawn by the government.
A new version of the Income Tax Bill, incorporating most of the recommendations made by the Select Committee chaired by BJP MP Baijayant Jay Panda, will now be introduced in Parliament.
To avoid confusion by multiple versions of the Bill and to provide a clear and updated version with all the changes incorporated, the new version of the Income Tax Bill will be introduced for the consideration of the House.
According to Panda, who chaired the Parliamentary Select Committee responsible for reviewing the legislation, the new law, once passed, will simplify India’s decades-old tax structure, cut down legal confusion, and help individual taxpayers and MSMEs avoid unnecessary litigation.
"The current Income Tax Act of 1961 has undergone more than 4, 000 amendments and contains over 5 lakh words. It has become too complex. The new bill simplifies that by nearly 50 per cent -- making it far easier for ordinary taxpayers to read and understand, " according to Panda.
He further stated that the greatest beneficiaries of this simplification would be small business owners and MSMEs who often lack the legal and financial expertise to navigate complicated tax structures.