Income tax bill tabled; FM seeks review by LS panel

Legislation gives priority to simplicity, clarity, reduction in litigation arising from complexity

- Gireesh Chandra Prasad

Finance minister Nirmala Sitharaman on Thursday tabled the new Income Tax Bill 2025 in the Lok Sabha and proposed a review by a select committee of the lower house, signaling the government's intention to give it effect by April 2026.

Sitharaman moved a motion to authorize the speaker of the house to set up a select committee of the Lok Sabha to review the bill. "The committee shall make a report by the first day of the next session," she proposed.

The bill makes significant changes in the way the direct tax statute is written and presented, giving priority to simplicity, ease of understanding and reduction in litigation arising from complexity, in stark contrast to the existing law that is notorious for long-winding sentences with cross references and multiple conditions and sub-clauses.