New Income Tax Bill 2025 Set for Monsoon Session After Unanimous Panel Approval
Parliament set to table Income Tax Bill 2025 in Monsoon Session after panel's unanimous approval
The Income Tax Bill 2025, which aims to simplify India’s current tax law, has been unanimously adopted by the Lok Sabha’s Select Committee and is now set to be tabled in Parliament during the upcoming Monsoon session starting July 21.Your ultimate guide for mastering TDS provisions - Click here The bill, spanning 3,709 pages, was reviewed by a committee chaired by BJP...
The Income Tax Bill 2025, which aims to simplify India’s current tax law, has been unanimously adopted by the Lok Sabha’s Select Committee and is now set to be tabled in Parliament during the upcoming Monsoon session starting July 21.
Your ultimate guide for mastering TDS provisions - Click here
The bill, spanning 3,709 pages, was reviewed by a committee chaired by BJP leader Baijayant (Jay) Panda. The panel proposed 285 changes to the draft legislation to refine the language and streamline provisions. The final report will be submitted to the Lok Sabha on the first day of the Monsoon session, paving the way for debate and possible passage during this sitting.
If passed, the new law will replace the Income Tax Act of 1961, which has been in force since April 1, 1962. That legislation has undergone over 4,000 amendments and 65 official revisions in its lifetime. The government has stated that the goal of the new bill is to remove outdated language, reduce complexity, and improve the overall experience for taxpayers by modernizing compliance procedures.
A committee member told PTI, “We have made 285 suggestions to the bill,” noting that these were aimed at ensuring clarity and better alignment with present-day economic realities. Once the committee’s report is submitted, the government is expected to review the suggestions and seek Cabinet approval before moving the bill for discussion and passage in the lower house.
The government hopes to implement the new Income Tax Act beginning April 1, 2026, giving taxpayers and the administration time to transition smoothly from the existing framework.
Apart from the Income Tax Bill, the Monsoon session is expected to consider a host of other legislations, including amendments to the GST laws, taxation reforms, and administrative bills related to institutions like the Indian Institutes of Management and the Indian Ports.
Once passed, it is expected to influence every category of taxpayer, including salaried individuals, professionals, small businesses, and large corporations alike.
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