The Select Committee of Lok Sabha is set to conduct a critical review of the Income Tax Bill 2025 in a meeting scheduled for May 2, 2025 at the Parliament House Annexe. This bill, part of the government's effort to overhaul the Income Tax Act of 1961, aims to streamline the tax system, reduce disputes, and offer unprecedented tax relief to taxpayers.

Key Stakeholder Engagement

The committee's meeting will focus on gathering oral evidence from various legal and advisory firms. Some prominent names participating include:

• Vaish Associates Advocates

• Reina Legal

• Economic Laws Practice

• Ved Jain & Associates

Additionally, Jayant G. Pendse, a former member of the Central Board of Direct Taxes (CBDT), will present his expert insights. The Asia Pacific Real Assets Association Limited (APREA) will also be part of the discussion. These stakeholders play a crucial role in providing the committee with a comprehensive understanding of the potential impacts of the bill.

The government had previously opened the floor for suggestions and feedback on the bill on April 18, inviting inputs from industry bodies and experts. The BJP Lok Sabha MP Baijayant Panda, who chairs the committee, emphasized the importance of collecting suggestions and memoranda from all interested parties before finalizing the bill.

Aims of the Income Tax Bill 2025

The Income Tax Bill 2025 aims to address various gaps and challenges in the current tax system. Nirmala Sitharaman, the Union Finance and Corporate Affairs Minister, highlighted that the bill, introduced in February 2025, will replace the Income Tax Act of 1961 with a more modern framework. The central focus is on making the tax system simpler, more transparent, and less contentious.

One of the significant aspects of the Bill is its focus on tax relief, which will benefit both individuals and businesses. According to Sitharaman, the Finance Bill 2025 is poised to offer unprecedented tax relief to taxpayers, aligning with the government's goal of tax simplification.

Timely Review for Better Tax Reforms

The review of the Income Tax Bill by the Select Committee marks an essential step in the ongoing effort to reform the Indian tax system. The committee is working towards incorporating feedback from stakeholders to ensure the Income Tax Bill 2025 addresses current tax challenges while boosting compliance.

In the July 2024 Budget, the government had announced the review of the Income Tax Act, 1961, as part of its broader agenda to simplify the Indian tax system. The bill is expected to be taken up for further discussion during the monsoon session of Parliament.

By seeking expert input through oral evidence and suggestions from key industry representatives, the Select Committee aims to finalize a comprehensive framework that meets the evolving needs of taxpayers and businesses alike. Once passed, the new bill will pave the way for a more efficient and effective tax regime, ensuring greater tax compliance and fairness.

Conclusion

The Income Tax Bill 2025 is a crucial part of the government's broader economic reform agenda. By simplifying the tax code and addressing long-standing issues, it is poised to provide substantial benefits to Indian taxpayers. As the Lok Sabha Select Committee reviews the bill with inputs from legal and industry experts, the final version of the bill is expected to serve as a landmark reform for India's taxation system, making it more transparent, simplified, and efficient.

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