The much-anticipated report of the Parliamentary Select Committee examining the new Income Tax Bill, 2025, is set to be presented in the Lok Sabha on Monday, paving the way for further legislative action on a complete overhaul of India’s direct tax framework.
The 31-member committee, chaired by BJP MP Baijayant Panda, was constituted by Lok Sabha Speaker Om Birla to review and suggest changes to the draft Bill.Finance Minister Nirmala Sitharaman earlier introduced the proposed legislation on February 13, 2025. In its latest meeting held on July 16, the committee adopted the report containing 285 recommendations aimed at refining the proposed tax law, reported PTI.
The new Bill, which intends to replace the Income Tax Act of 1961, significantly trims the legal text and attempts to improve clarity and compliance. According to the FAQs issued by the Income Tax Department, the draft legislation comprises 2.6 lakh words, down from 5.12 lakh in the current law. It also reduces the number of chapters from 47 to 23 and sections from 819 to 536.