According to Baijayant Jay Panda, a BJP MP who chaired the Parliamentary Select Committee tasked with studying the legislation, the new income tax law will make it simpler for small businesses and regular citizens to file taxes.

Once passed, he said, the new law will eliminate legal ambiguity, streamline India’s decades-old tax system, and assist MSMEs and individual taxpayers in avoiding needless litigation.

“There are over 4,000 modifications and more than 5 lakh words in the present Income Tax Act of 1961. It’s gotten too complicated. The new measure makes it much easier for regular taxpayers to read and comprehend by simplifying it by around 50%, according to Panda.

He emphasized that MSMEs and small business owners, who frequently lack the financial and legal know-how to handle complex tax systems, will benefit the most from this simplicity.

“MSMEs and regular taxpayers face difficulties, in contrast to large corporations that have access to tax consultants and legal advisors. “There will be fewer disputes and easier compliance with a simpler law,” he stated.

Panda led the Select Committee through 36 consecutive meetings over a number of months.

Over one hundred stakeholders, including trade associations and individual specialists, were consulted.

Panda proudly pointed out that this committee is a unique example of effective legislative functioning because not a single meeting was postponed and no extension was requested.

The report was turned in considerably ahead of schedule and is anticipated to be tabled during the current Monsoon Session. It contains more than 300 suggestions.

“The new law could go into effect on April 1st of next year if it is passed,” he continued. Panda attributed this achievement to collaboration between the two parties.

“There was no political point-scoring. For the benefit of taxpayers, each member concentrated on making the tax code simpler. In the sake of the country, it was a true collective effort,” he said.

“The bill lays a modern, simplified foundation that allows existing and future tax policies to be implemented more clearly and effectively, even though it does not alter tax policies themselves—which remain the purview of the Finance Bill and the Union Budget,” he continued.

Panda said that the committee made sure the legal framework is accessible to all citizens and supports all recent improvements, but it did not suggest any modifications to the policies.

“Simplifying the law itself helps policy implementation and reduces confusion for both taxpayers and tax administrators,” he stated.