The Select Committee of the Lok Sabha has officially invited suggestions from experts, industry bodies, stakeholders, and the public on the proposed Income-Tax Bill, 2025, which aims to overhaul and replace the Income-tax Act of 1961.
The Committee, chaired by BJP MP Baijayant Jay Panda, is currently scrutinising the draft legislation and has asked interested parties to submit their views within two weeks. Submissions should be made in English or Hindi, with two hard copies to be sent to the Director (CF&S CITB), Lok Sabha Secretariat, Room No. 133A, as per the official release.
This public consultation follows a prior appeal on March 18, when the Union Government invited early-stage feedback from stakeholders to support the comprehensive restructuring of India’s direct taxation laws.
Finance Minister Nirmala Sitharaman, during the discussion on the Finance Bill 2025, confirmed that the new Income Tax Bill is not part of the Finance Bill but would be separately taken up for detailed debate during the Monsoon Session of Parliament.
“The Budget aims to provide tax certainty and support ease of doing business. The new Income Tax Bill is being reviewed by a special committee and is part of our vision to build Viksit Bharat by 2047,” said Sitharaman in Parliament.
The draft Bill proposes to simplify tax provisions, reduce litigation, and modernise India’s direct tax structure. Notable reforms highlighted by Sitharaman include:
- Elimination of overlapping levies: Either a cess or a surcharge may be applied under direct tax—not both.
- Customs duty overhaul: The number of industrial tariff slabs reduced from 21 to just 8, with seven slabs eliminated entirely to simplify imports.
- Emphasis on predictability and transparency in tax laws to improve investor confidence and business operations.
The Income-Tax Bill 2025, introduced in the Lok Sabha on February 13, covers individuals, businesses, and NGOs, aiming to bring India’s tax code in line with global best practices.