Parliamentary panel report on new Income Tax Bill, 2025 to be tabled in Lok Sabha on July 21

A report of the Parliamentary Committee established to investigate New Income Tax Bill, 2025Who will replace the six-post-old Income Tax Act, is scheduled to join the Lok Sabha on Monday (July 21, 2025).

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31-The member of the member’s selection committee, headed by BJP leader Bajyant Panda, was appointed to investigate by Lok Sabha Speaker Om Birla. New Income Tax Bill, 2025Which was introduced in the Lok Sabha on 13 February by Finance Minister Nirmala Sitarman.

The committee has given 285 suggestions and in its meeting on 16 July, the new Income Tax Bill, has adopted the report on 2025, which will now be introduced in the House for further action.

Simplified income tax bill, which is half -sized 1961 Income Tax ActWants to achieve certainty by reducing the scope of litigation and fresh interpretation.

One of the words of the new bill introduced in the Lok Sabha is 2.6 lakhs, which is less than 5.12 lakh in the IT Act. The current law has 536 number of classes compared to 819 effective classes.

According to FAQ (often asked questions) issued by the IT department, the number of chapters has also been reduced from 47 to 23.

The Income Tax Bill 2025 has 57 tables, compared to 18 in the current Act and 1,200 Provizos and 900 explanations have been removed.

The provisions related to exemption and TDS/TC have been made crisp by putting them in a tabular format in the bill, while the chapters of not-for-profit organizations have been widespread with the use of plain language. As a result, the word count is reduced by 34,547.

In a taxpayer friendly step, the bill replaces the term ‘last year’, as mentioned in the Income Tax Act, 1961 with ‘Tax Year’. In addition, the evaluation is overcome with the concept of year.

Currently, for the income earned in the last year (2023–24), tax is paid in the year (2024–25 says). It has been removed last year and the assessment year (Ay) concept and brought only tax year under the simplified bill.

While presenting the bill in the Lok Sabha, Ms. Sitarman had said that the bill had “adequate changes”. The number of words has been reduced from 5.12 lakhs to half, and the sections have reduced from 819 to 236. After the introduction, the bill was sent to the selection committee of the Lok Sabha and the committee was made mandatory to submit its report by the first day of the next session.

The monsoon session of Parliament is to sit from 21 July to 21 August, 2025.