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Jun 14, 2025
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Income Tax Bill 2025: Parliament panel focuses on clarity, not overhaul
Parliament’s select committee examining the Income Tax Bill, 2025, may not recommend any significant changes to the new provisions but only suggest "simplification of language" in some clauses to remove ambiguity, a source privy to the matter told Moneycontrol.
"The select committee has almost finalised its report (on the new bill)… There are no major recommendations," the person said. The committee, led by BJP MP Baijayant Panda, would submit its report to the government on the first day of the monsoon session, likely to begin in July’s third week.
The Income Tax Bill, 2025, was tabled by Finance Minister Nirmala Sitharaman in Parliament on February 13, as announced in the budget. The legislation seeks to repeal the Income Tax Act of 1961 and replace it with a simplified version. If passed, the new law will come into effect from April 1, 2026. Sources say the government is aiming to pass the bill in the upcoming winter session.
The Central Board of Direct Taxes, in the FAQs issued in February, had said that in the new bill, redundant provisions under the existing act have been removed; sub-sections and clauses have been used, instead of relying on provisos and explanations for exceptions and carve-outs; and a simplified system for cross-referencing of sections, sub-sections, clauses, etc., has been used.
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