Panel chairman presents Select Committee report on new Income-Tax Bill in Lok Sabha
Published on 21/07/2025 03:08 PM
Panel chairman Baijayant Panda today, July 21, presented the report of the Select Committee on the new Income-Tax Bill in parliament. The Select Committee examined the Income-tax Bill, 2025, which seeks to simplify language and structure of the Income Tax Act 1961.
Baijayant Panda, a BJP MP, also presented a copy of the record of evidence given before the Select Committee on the Income-Tax Bill, 2025.
The report was unanimously adopted by the Committee on 16th July, 2025. The Bill was introduced on 13th February, 2025, and referred to the Select Committee on the same day through a motion moved by Nirmala Sitharaman, Minister of Finance and Corporate Affairs. Accordingly, the Select Committee of Lok Sabha, consisting of 31 Members from Lok Sabha under the Chairpersonship of Baijayant Panda was constituted to examine the Bill and make and submit their report.
The mandated function of the Select Committee was to go through the text of the Bill, clause-by-clause, to see that the provisions of the Bill bring out the intention behind the measure, that there will be no procedural defect in its working, that the Bill does not offend provisions of the existing law and that the object proposed to be achieved is adequately brought out.
The new Income-Tax Bill aims to replace the old Income Tax Act, 1961. The new Bill is almost half the size of the old Bill. In the updated Bill, the number of sections decreased from 819 to 536, and the chapters are cut down from 47 to just 23. The words have been made simpler and have around 2.6 lakh words now, compared to 5.12 lakh words in the 1961 law.
Now, the taxpayers will pay taxes every year. There will be no previous year and ‘assessment year’. Currently, you earn income this year and pay tax next year, but with the new Bill, you will have to pay the tax same year you earn income.
Officials said the Income-tax Bill, 2025, reflects the Government's commitment to enhancing ease of doing business by providing a tax framework that is simple and clear.
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