The New Income Tax Bill 2025 has sparked controversy as Finance Minister Nirmala Sitharaman introduced it in Parliament. While the government aims to simplify tax laws, the Opposition walked out in protest. Let’s dive into what this bill is all about and why it’s causing such a stir.
What is the New Income Tax Bill 2025?
The New Income Tax Bill 2025 is a fresh attempt to revamp India’s tax structure. According to Finance Minister Nirmala Sitharaman, the bill seeks to make tax laws more straightforward and taxpayer-friendly. The current tax law, which dates back to 1961, has undergone thousands of amendments over the years, leading to unnecessary complexity.
Why Did the Opposition Walk Out?
As soon as Sitharaman tabled the bill in Lok Sabha, chaos erupted. The Opposition MPs staged a walkout, objecting to various provisions of the bill. While the exact number of MPs who left the session remains unclear, their discontent was evident.
Opposition’s Main Objections
More Sections than Before?
One of the key objections came from NK Premachandran, an Opposition MP from Kerala’s Kollam. He pointed out that the new bill has more sections than the old Income Tax Act of 1961. In response, Sitharaman clarified:
- The Income Tax Act 1961 originally had 298 sections.
- Over the years, it expanded to 819 sections due to multiple amendments.
- The New Income Tax Bill 2025 has 536 sections, significantly reducing complexity.
“Mechanical” Changes or Real Reform?
TMC MP Professor Sougata Ray criticized the bill for being filled with what he called “mechanical” changes. However, Sitharaman firmly countered this claim, stating that:
- The bill significantly reduces the number of words used in tax laws.
- It streamlines tax provisions, making them easier to understand.
- The language has been simplified in both English and Hindi.
Key Features of the New Income Tax Bill 2025
The New Income Tax Bill aims to overhaul the system while keeping it simple and transparent. Here are some of the major highlights:
1. Reduction in Sections and Chapters
By cutting down unnecessary provisions, the bill makes tax laws less complicated. The new version shrinks the overall number of sections from 819 to 536.
2. Plain Language for Easy Understanding
Tax laws have often been criticized for being too complex. This bill introduces a more straightforward structure, making it easier for both taxpayers and tax professionals to interpret.
3. A Response to 4,000+ Amendments
Since 1961, over 4,000 amendments have been made to the tax law. This bill integrates all necessary updates into a more streamlined framework.
4. Sent to a Select House Committee
Sitharaman has proposed sending the bill to a newly constituted Select House Committee. The terms of this committee will be decided by Lok Sabha Speaker Om Birla, and its report is expected by the first day of the next session.
How Will This Bill Impact Taxpayers?
The government claims the bill will benefit taxpayers in multiple ways:
- Easier Tax Filing: With simplified language and fewer sections, filing returns will become less confusing.
- Reduced Legal Hassles: Fewer amendments mean fewer disputes and contradictions in tax laws.
- More Transparency: A streamlined system minimizes loopholes and ensures fair taxation.
What’s Next for the Bill?
Since the bill has introduce in Lok Sabha, the next steps involve further discussions, scrutiny the House Committee, and potential amendments before it can become law.
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Final Thoughts
The New Income Tax Bill 2025 aims to simplify India’s tax laws, making them more accessible for everyone. While the government insists this is a much-needed reform, the Opposition remains skeptical. As the bill moves through the legislative process, all eyes will be on the debate that follows.
One thing is certain—the Indian tax system is about to undergo a significant transformation. Whether it turns out to a game-changer or just another bureaucratic overhaul remains to be seen.
