What Changes Are Coming with the New Income Tax Bill-2025? Insights from the Parliamentary Panel

Parliamentary Panel Reviews Income Tax Bill-2025

New Delhi: On Wednesday, a Parliamentary committee reviewed the Income Tax Bill-2025, proposing 285 amendments aimed at modernizing and simplifying the nation's tax framework.

The Select Committee of the Lok Sabha, led by BJP's Baijayant Panda, has finalized its report on the proposed legislation, which is set to be introduced in the House on Monday, coinciding with the start of the Monsoon session.

A committee member confirmed that they have put forth 285 recommendations regarding the Bill.

The report will be submitted to the Lok Sabha on Monday, with expectations that the Bill will be approved during the Monsoon session.

Following the Committee's report, the government will review the suggestions and may seek Cabinet approval before presenting the Bill for discussion and approval in the Lok Sabha.

The government plans to implement the revised Income Tax law by April 1, 2026.

This new legislation aims to clarify language, remove redundancies, and streamline processes to improve the experience for taxpayers.

Once passed, this Bill will replace the Income Tax Act of 1961, which has been in effect since April 1, 1962.

The 1961 Act has undergone 65 amendments, resulting in over 4,000 changes to its various sections.