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Select Committee Finalises Report on Income Tax Bill, 2025

  • 17 Jul 2025

On 16th July 2025, the Select Committee of Parliament finalised its report on the Income Tax Bill, 2025, with nearly 285 suggestions. The report is expected to be submitted in the upcoming Monsoon Session of Parliament.

Key Points

  • Bill Timeline: The Income Tax Bill, 2025 was introduced in Lok Sabha on 13th February 2025 and referred to a Select Committee the same day.
  • Objective: The Bill aims to repeal and replace the Income-Tax Act, 1961 to make tax law simpler and reduce compliance costs.
  • Need for Overhaul: Finance Minister Nirmala Sitharaman stated that the 1961 Act has undergone numerous amendments, making it complex and inefficient.
  • Stakeholder Concerns: Taxpayers, administrators, and practitioners have raised concerns over the Act’s convoluted provisions.
  • Opposition’s Stand: The Opposition has expressed fears about potential misuse of power under the proposed legislation.
  • Next Steps: The report, with 285 suggested changes, will guide deliberations during the Monsoon Session, where eight new Bills are also expected to be introduced.