Income tax bill a step away from law, panel flags fixes

The panel broadly endorsed the govt’s goal of simplifying the tax code

- Rhik Kundu

India’s most significant direct tax reform in over six decades moved a step closer to becoming law on Monday, with a Lok Sabha select committee submitting its report on the draft Income Tax Bill, 2025.

The panel broadly endorsed the government's goal of simplifying the tax code, but recommended a series of changes to address potential ambiguities, safeguard taxpayer rights, and ensure regulatory continuity.

‘The report, tabled by committee chair Baijayant Panda, a member of parliament from the Bharatiya Janata Party (BJP), comes within months of the bill being introduced in Parliament in February by finance minister Nirmala Sitharaman.

The proposed law is intended to replace the Income Tax Act of 1961, which has served as the cornerstone of India’s direct tax regime for more than six decades.

The proposed law is intended to replace the Income Tax Act of 1961.