The Income-Tax Bill 2025 under Parliament review
The Income-Tax Bill 2025 will be reviewed by the Select Committee of the Lok Sabha on May 02, 2025. This marks a critical phase in India’s tax reform journey as the draft Bill aims to replace the Income-tax Act, 1961, bringing fresh structure and simplification.
What is the Income-Tax Bill 2025?
The Bill is a comprehensive re-draft of India’s income tax law with updated definitions, tax computation rules, and compliance standards. It spans 622 pages and was first introduced in March 2025.
Key Proposals in the Draft Bill
- Digital-first compliance structure
- Simplified tax regimes with clearer slabs and deductions
- New Chapter XIV-B on tax enforcement powers
- Definitions updated under Section 2 for clarity
- Expanded provisions for non-resident taxation (Sec. 9A, 10(4D), etc.)
- Revised rules for capital gains and exemptions
Why May 02, 2025, Matters for Taxpayers
- The Select Committee hearing is a chance to propose modifications before the Bill becomes law.
- Stakeholders including industry bodies, tax experts, and civil society may submit feedback.
What Tax Professionals Should Watch
- Potential overlap or repeal of existing exemptions under Section 10
- Implications of new tax enforcement mechanisms under Chapter XIV-B
- Changes in deemed income and clubbing provisions
Expert Tip
Keep ITR filings for FY 2024–25 in the current format, but be prepared for a complete overhaul in FY 2025–26, depending on the final passed version.
40–50 Word Snippet (Google Friendly)
The Select Committee of the Lok Sabha will review the Income-Tax Bill 2025 on May 2. This Bill aims to replace the Income-tax Act, 1961, and simplify tax law for Indian taxpayers. Key changes affect tax regimes, exemptions, and compliance frameworks.
FAQ (for SEO)
Q1: What is the Income-Tax Bill 2025?
It is a proposed new law to replace the 1961 Act with simplified and modernised tax provisions.
Q2: Will the new Bill affect ITR filings?
Yes, from AY 2026–27 onwards, once the Bill is passed.