Income Tax Bill 2025: A New Era of Taxation

The parliamentary committee is ready to present its report on the much-anticipated Income Tax Bill 2025 in the Lok Sabha on Monday. This new legislation, set to replace the six-decade-old Income Tax Act of 1961, promises significant simplifications for taxpayers and aims to reduce litigation.

Chaired by BJP leader Baijayant Panda, the 31-member Select Committee was tasked with examining the bill, introduced by Finance Minister Nirmala Sitharaman. The bill seeks to streamline income tax regulations, substantially lowering the word count from 5.12 lakh to 2.6 lakh and sections from 819 to 236.

A key change in the bill is the introduction of a 'tax year' concept, eliminating the previous 'assessment year' system. The effort includes 285 committee suggestions and emphasizes clear tabular formats for exemptions and TDS/TCS provisions, aiming to make navigation simpler for individuals and organizations alike.

(With inputs from agencies.)