Income Tax Bill 2025: Lok Sabha Introduction and Select Committee
Why in the news
The Finance Minister introduced the Income Tax Bill, 2025 in the Lok Sabha and asked the Speaker to form a Select Committee to study it. Opposition members questioned the need for a new law; the government defended it.
Key facts
- Committee: Speaker Om Birla to constitute it; report due by the first day of the next session.
- Simplification: 1,200 provisos and 900 explanations dropped; sections and chapters merged.
- Salary provisions grouped together for easier return filing.
- Tax Year replaces ‘previous year’ and ‘assessment year’, matching global practice.
Reform features
| Theme | Detail |
|---|---|
| Structure | Fewer sections, less redundancy |
| Terminology | Single Tax Year |
| Administration | Rules and forms notified after Parliament approval; software built in parallel |
| Transition | Section-wise comparison of old and new law to be published by the Income Tax Department |
Background
- Drafting drew on the Direct Tax Codes of 2009 and 2019, adopting some earlier recommendations.
Exam angle
- Introduced in: Lok Sabha, by Nirmala Sitharaman.
- New concept: Tax Year.
- Committee type: Select Committee.