August 10, 2025

NEW DELHI: Get ready for some fresh tax news! The government is all set to introduce a brand-new version of the Income Tax Bill on Monday. This is no ordinary makeover – the new bill includes 285 recommendations from a special Select Committee of Parliament, making India’s tax laws simpler and sharper. Finance Minister Nirmala Sitharaman pulled back the earlier Income Tax Bill 2025, introduced in February, after disruptions stopped its smooth passage in the Lok Sabha. Why the re-introduction? Sources say, "To avoid confusion by multiple versions of the bill and to provide a clear and updated version with all changes incorporated, the new version of the Income Tax Bill will be introduced for the consideration of the House on Monday." A smart move to keep things crystal clear! The Select Committee, led by BJP’s Baijayant Panda, took a deep dive into the draft law and handed over suggestions last month. Their 285 recommendations focus on simplifying and modernising the Indian tax system, making it less of a headache for everyone. This bill isn’t just a small tweak. It aims to replace the six-decade-old Income Tax Act of 1961 with a new, easy-to-understand framework. The plan is to keep tax rates unchanged while cleaning up the language and structure. An official statement explained the three guiding principles behind this effort: first, make the text and layout easier to read; second, keep tax policies steady without surprises; and third, preserve tax rates for predictability. CBDT Chairman Ravi Agrawal shared some exciting insights in a recent interview with TOI. He said, "The provisions of law will become far more simpler for any taxpayer to read and understand." Imagine a world where you don’t need a tax expert just to know what you owe! Agrawal added, "The use of formulae, tables and consolidation of provisions will enable easier compliance for taxpayers and professionals." So, with this big revamp, taxpayers can look forward to faster, simpler, and friendlier tax rules. The countdown is on for Monday's Parliament session when the fresh Income Tax Bill will try to turn the complex tax maze into a smooth ride for all Indians.

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Tags: Income tax bill, Finance minister nirmala sitharaman, Select committee, Tax law simplification, Income tax act 1961,