New Delhi: The Monsoon session of Parliament begins today (Monday), and all eyes are on whether the much-anticipated Income Tax Bill, 2025, will be tabled in the Lok Sabha. This new bill seeks to replace the outdated Income Tax Act of 1961 with a simpler, more modern framework.
Committee report ready: Simpler, shorter and clearer
A report prepared by the 31-member Select Committee, chaired by BJP MP Baijayant Panda, is expected to be presented in the Lok Sabha. The panel, appointed by Speaker Om Birla, has suggested 285 changes and adopted its final report on 16 July. Finance Minister Nirmala Sitharaman had first introduced the bill in the Lok Sabha on February 13, 2025.
The revised bill is notably concise, with around 2.6 lakh words, down from 5.12 lakh in the existing law. The number of sections has been reduced from 819 to 536, and the number of chapters has also been reduced from 47 to 23. The bill now includes 57 tables, compared to just 18 in the old Act, and eliminates over 1,200 provisos and 900 explanations.
Taxpayer-friendly changes
A key feature of the new bill is its use of plain language and a tabular layout for provisions on exemptions and TDS/TCS. The chapter on not-for-profit organisations has also been made more comprehensive. These changes have helped reduce the word count by over 34,000.
Importantly, the terms “previous year” and “assessment year” have been dropped in favour of a single “tax year”, simplifying the process for taxpayers. Under the current law, income earned in one financial year is assessed in the next. The new bill removes this two-year distinction.
Following its introduction, the bill was referred to the Select Committee, which was asked to submit its findings by the first day of the next session. The bill is set to be taken up for discussion and further action during the Monsoon Session from July 21 to August 21.
Will the dissenting Opposition allow?
However, with the Opposition preparing to corner the Modi government on major issues like the Pahalgam terror attack, Operation Sindoor, Air India 171 crash, Trump’s ceasefire claims and the Bihar voter list revision, the first day of the Monsoon sessions is headed to a stormy start.
