Amid protests from the opposition, Union Finance Minister Nirmala Sitharaman presented a revised version of the Income Tax Bill, 2025, in the Lok Sabha on Monday. It included the majority of the suggestions put up by the Parliamentary Select Committee, which was led by BJP politician Baijayant Panda.
According to FM Sitharaman, who tabled the bill in the Lok Sabha, recommendations have been received and must be taken into consideration in order to accurately express the legislative content.
She said that the previous Bill was withdrawn to prevent misunderstandings. “There are corrections in the nature of drafting, alignment of phrases, consequential changes, and cross-referencing,” she stated.
She noted that the updated Bill would bring the law into compliance with current provisions and enhance justice and clarity.
The goal of the updated draft is to give lawmakers a single, comprehensive version that incorporates all recommended modifications.
The Parliamentary Select Committee’s 285 recommendations are incorporated into the revised Income Tax Bill 2025. The new law seeks to rectify past inadequacies and streamline tax procedures, which could change the nation’s income tax environment.
The government formally withdrew the Income Tax Bill, 2025, which was tabled in the Lok Sabha on February 13 to replace the current Income Tax Act, 1961, last week.
When the new law is passed, it would streamline India’s decades-old tax system, eliminate legal ambiguity, and assist individual taxpayers and MSMEs in avoiding needless litigation, according to Panda, who chaired the Parliamentary Select Committee tasked with studying the proposal.
The current Income Tax Act of 1961 is nearly five lakh words long and has undergone over 4,000 modifications. It’s gotten too complicated. Panda claims that the new measure streamlines that by almost 50%, making it more simpler for regular taxpayers to read and comprehend. The parliamentary panel pointed out several drafting mistakes and recommended changes to clear up any confusion.
To the benefit of all taxpayers, slabs and rates have been altered throughout the updated Bill. The government claims that the new structure increases household consumption, savings, and investment by significantly lowering middle-class taxes and giving them more money.