Nirmala Sitharaman Introduced New Income Tax Bill 2025 in Parliament. This bill will replace the old Income Tax Act of 1961. It incorporates the suggestions of the selection committee to simplify tax rules.
Income Tax Bill 2025: Union Finance Minister Nirmala Sitharaman has introduced the new Income Tax Bill 2025 in Parliament. This bill will replace the Income Tax Act of 1961. It was presented in the Lok Sabha last week, but the bill had to be withdrawn due to the adjournment of the House proceedings. Now, the government has made necessary amendments to the bill based on the suggestions of the selection committee and has re-introduced it in Parliament today.
Need and Objectives of Income Tax Bill 2025
India's current income tax law was enacted in 1961, and it is now imperative to amend it in accordance with modern economic conditions. The new Income Tax Bill 2025 is designed to make the tax system simpler, more transparent, and more convenient for taxpayers. Its objective is to simplify tax rules and reduce tax evasion.
Reasons for Withdrawing the Bill and Amendments
Last week, when the bill was presented in the Lok Sabha, the proceedings of the House were suddenly adjourned. For this reason, the government decided to withdraw the bill and incorporate the suggestions given by the selection committee. Minister of Parliamentary Affairs Kiren Rijiju stated that the new bill will be quite different from the previous one and will include several improvements.
Suggestions of the Selection Committee and Significant Changes
The Lok Sabha Select Committee was chaired by BJP MP Baijayant Panda. The committee made 285 suggestions, including simplifying the language of the law, improving drafting, and changes to cross-referencing. Major changes include easing the rules for tax refunds, re-including the provision for inter-corporate dividends, and the provision for zero TDS certificates.
What Benefits Will the Income Tax Bill 2025 Bring for Taxpayers?
With this new bill, taxpayers will find it easier to understand tax rules. The tax refund process will be simplified, and tax evasion will be better controlled. Companies will get clarity in matters of tax exemptions. This will increase investor confidence and improve economic activities.
Further Process of the Bill in Parliament
Now, the bill will be discussed and passed in both houses of Parliament. The government wants this bill to be passed as soon as possible so that the tax system can be improved and economic growth can be accelerated. This step by Parliament will have a positive impact on the country's tax structure.
