New Delhi: The much-awaited Income Tax Bill of 2025 is set to be introduced in the monsoon session of Parliament, typically running from July to August. Finance Minister Nirmala Sitharaman made this confirmation during her Lok Sabha speech, which, by the way, also delves into Finance Bill 2025.
This bill, which was first introduced on February 13, is now being critically examined by the Select Committee. The Select Committee is to examine and report on the bill, and it is expected that they would report by the beginning of the forthcoming Parliament session.
The 2025 Income Tax Bill primarily aims at simplifying the present tax laws, which largely originate from the 1961 Income Tax Act. This whole exercise would reduce litigation, increase clarity, and, subsequently, reduce room for interpretation. The bill, in comparison to the older act, is concise with 2.6 lakh words keeping distance from the old 5.12 lakh words, with a reduction in the number of sections from 819 to 536 that make it easily readable and more efficient.
In addition to these deletions, the new Income Tax Bill has 57 tables, whereas the previous Act had only 18. It is worth noting that around 1,200 provisos and 900 explanations used under the old Act have been expunged as well, thus "simplifying" the tax process and making it considerably "user-friendly." The government intends to breathe new life into the tax-filing process and inspire greater certainty among the taxpayers.
The initiative is considered a significant stepping stone in the direction of simplification and transparency in the country in respect to taxation by improving tax compliance and administration in the nation. Little can be predicted once the Committee Submit Report, how far these discussions can be significant in modernizing the tax system in the country.
[ Source Credit: NDTV]
