Is FM Sitharaman Ready to Present the Revised Income Tax Bill 2025 in Parliament?
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Synopsis
Get ready for a major overhaul in India's tax landscape! Union Finance Minister Nirmala Sitharaman is gearing up to introduce the revamped Income Tax Bill 2025 in Parliament, aiming to simplify tax processes and ease burdens on taxpayers. This new legislation could redefine how income tax operates in the country.
Key Takeaways
- Revised Income Tax Bill 2025 aims to simplify tax processes.
- 285 recommendations from the Select Committee have been included.
- Tax slabs have been altered to benefit the middle class.
- New income threshold for tax rebate is now ₹12 lakh.
- Marginal relief applies to incomes slightly above ₹12,00,000.
New Delhi, Aug 11 (NationPress) The Union Finance Minister Nirmala Sitharaman is poised to unveil the updated Income Tax Bill 2025 in the Lok Sabha this coming Monday.
The revised Income Tax Bill 2025 incorporates a total of 285 recommendations from the Parliamentary Select Committee. This new legislation endeavors to simplify tax processes and rectify earlier deficiencies, which could significantly alter the income tax framework within the nation.
Just last week, the Income Tax Bill 2025, initially presented in the Lok Sabha on February 13 to substitute the outdated Income Tax Act of 1961, was officially withdrawn by the government.
A fresh iteration of the Income Tax Bill, reflecting the majority of suggestions from the Select Committee led by BJP MP Baijayant Jay Panda, is now set for introduction in Parliament.
This updated version aims to eliminate confusion stemming from multiple drafts and provide a singular, clear version of the Bill, inclusive of all changes.
According to Panda, who led the Parliamentary Select Committee reviewing the Bill, the new law, once approved, will streamline India's long-standing tax system, reduce legal ambiguities, and assist individual taxpayers and MSMEs in sidestepping unnecessary legal disputes.
"The existing Income Tax Act of 1961 has seen over 4,000 amendments and comprises more than 500,000 words. It has become excessively intricate. The new bill simplifies this by nearly 50%, making it significantly easier for everyday taxpayers to comprehend," stated Panda.
He further emphasized that small business proprietors and MSMEs, who often lack the legal and financial acumen to navigate convoluted tax systems, will be the primary beneficiaries of this simplification.
The new provisions will play a vital role in establishing a fair and just direct taxation system that does not impose an additional direct tax burden on the working and middle-class citizens of the country.
Tax slabs and rates have been revised to favor all taxpayers. This new framework considerably lessens the tax burden on the middle class, leaving them with more disposable income, which in turn is expected to enhance household spending, savings, and investments, as per government announcements.
The Finance Act 2025 has raised the income limit for claiming a tax rebate under section 87A of the Income Tax Act of 1961 for resident individuals taxable under the new tax regime in section 115 BAC from ₹7 lakh to ₹12 lakh, and the maximum rebate amount has been increased from ₹25,000 to ₹60,000.
Marginal relief, previously offered under the new tax regime, will also apply to incomes slightly exceeding ₹12,00,000, as stated by the Finance Ministry. The new income tax bill is designed to simplify tax filing for ordinary citizens and small enterprises.
Point of View
The introduction of the revised Income Tax Bill 2025 marks a pivotal moment. The emphasis on simplification and fairness reflects a growing commitment to support taxpayers while addressing historical complexities. This initiative, spearheaded by Finance Minister Nirmala Sitharaman, is a step towards a more transparent and equitable taxation system, which is essential for fostering economic growth and stability.
NationPress
19/08/2025
Frequently Asked Questions
What is the main goal of the revised Income Tax Bill 2025?
The primary aim of the revised Income Tax Bill 2025 is to simplify tax processes and address previous shortcomings in the existing tax framework, benefiting individual taxpayers and small businesses.
How many recommendations were incorporated in the new bill?
The new Income Tax Bill 2025 incorporates 285 recommendations from the Parliamentary Select Committee.
Who chaired the Parliamentary Select Committee for the Bill?
The Select Committee was chaired by BJP MP Baijayant Jay Panda.
What changes have been made to tax slabs?
Tax slabs and rates have been changed to lessen the tax burden on the middle class, ultimately leaving them with more disposable income.
What is the new income threshold for claiming a tax rebate under section 87A?
The income threshold for claiming a tax rebate has been increased from ₹7 lakh to ₹12 lakh.
