New income tax bill cuts half the sections; report with 285 changes to be tabled Monday

There is scheduled to submit a major reform of the tax law in India, where a report is submitted to the parliamentary committee that examines the new income tax bill, 2025 in Luke Sebha on Monday. The draft law seeks to replace the income tax law six decades ago, 1961 with a simplified framework aimed at clarity, reduce litigation, and simplified compliance.

The Committee for the selection of 31 members, headed by the leader of the Bharatiya Jatata PaGayaant Panda, was appointed by the President of Luke SABi Umm Bela after the draft Law submitted the Finance Minister Nermalla Sitaramann on February 13 in Luke Sebha. The committee adopted its report at a meeting held on July 16, and it will now be presented in the House of Representatives for more work.

The committee submitted 285 proposals for the draft law. He was assigned to submit his report by the first day of the next session, which begins with the seasonal wind session on July 21 and continues until August 21, 2025.

The income tax bill, 2025, according to the common questions issued by the Ministry of Income Tax, is about half of the current law, with the number of words 2.6 for Cham, a decrease from 5.12 kah in the 1961 law.

The main goal of the draft is to achieve tax certainty by reducing the scope of litigation and new interpretation. The new bill also provides 57 schedules, compared to only 18 in the current law, and removes 1200 explanations and 900 interpretations to simplify the law and its exhaustion.

“Co -changes have been made in the bill. The number of words decreased to half from 5.12 kah, and the sections decreased from 819 to 236,” said Setharmann while introducing the bill.

The government said that the rewriting the tax law uses a clear language throughout and displays provisions related to exemptions and TDS/TDS in a CD coordination, which makes it easier to understand. The separation of non -profit institutions has become comprehensive and updated for clarity. As a result of these changes, the number of words decreased by 34,547, as indicated by the Information Technology Department.

In a move aimed at improving the understanding of taxpayers, the draft law replaces the term “previous public” from the old act with the “tax year”, as it gets rid of the concept of the evaluation year. Currently, the tax is paid in the evaluation year following the previous year in which the income is obtained-for example, the acquired income is evaluated in 2023-24 in 2024-25. The simplified law will now apply taxes to the same tax year, eliminating this double structure.