Time-bound resolution of litigations should be there; a parliamentary panel that analysed the Income Tax Bill, 2025, has guided, as it made 285 recommendations on the draft legislation aimed at streamlining and updating tax laws.
The select committee of Lok Sabha, headed by BJP’s Baijayant Panda, analysed the Income Tax Bill 2025 and adopted the report on the draft legislation, which is anticipated to be presented in the House on Monday (July 21) – the first day of Parliament’s monsoon session. “We have made 285 recommendations. The government has already accepted 250. We have said tax litigations should not linger on and there should be time-bound resolution, although huge improvements have happened as can be seen in the case of refunds,” a panel member expressed.
New Income Tax Bill Removes Redundant Tax
Parliamentary panel’s suggestions that analysed the Income Tax Bill, 2025, were largely “corrective” in nature, a panel member expressed. The easy measures have led to a lessening of the size of the document to 600 pages from the earlier 850. On February 13, the IT Bill, 2025, was tabled in Parliament and was objected to ease the language and structure of the Income Tax Act 1961.
It was sent to the select committee for examination.
The simplification exercise was navigated by three major principles, which comprised textual and structural simplification for enhanced clarity and coherence, no major tax policy modifications were made to ensure continuity and certainty, and no modification of tax rates, which is sought to preserve predictability for taxpayers, as per the official statement.
The new IT Bill has objected to remove the redundant and repetitive provisions for effective navigation, reorganising sections logically to streamline the case of reference. It has chosen to facilitate the language to make the law accessible and has eliminated obsolete and redundant provisions for effective clarity.
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To ensure continuity while improving usability, the current taxation norms have been preserved, as per the statement. “The Income-Tax Bill, 2025, reflects the govt’s commitment to enhancing ease of doing business by providing a tax framework that is simplified and clear,” it cited.
Finance Minister Nirmala Sitharaman, in an interview a day after presenting her 8th consecutive Budget in February this year, mentioned that the new IT bill was strived to make the same appropriate for the 21st century.
As per CBDT chairman Ravi Agrawal, simplification of the language and presentation is there, and it carries clarity to the system, which is anticipated to facilitate litigation.
