New Income Tax Bill Revamped to Address Stakeholder Concerns

Finance Minister Nirmala Sitharaman introduced the revised Income-Tax (No.2) Bill, 2025, in Lok Sabha. Suggestions from a parliamentary panel, led by Baijayant Panda, were incorporated to clarify definitions and address stakeholder concerns, aiming to reduce legal disputes and improve taxpayer relief.

The newly-introduced Income-Tax (No.2) Bill, 2025, was presented by Finance Minister Nirmala Sitharaman in Lok Sabha, aimed at consolidating and readjusting income tax laws, following the withdrawal of the previous Bill.

Key recommendations from a 31-member select committee, chaired by BJP MP Baijayant Panda, have been incorporated. The committee's report, presented on the first day of the Monsoon session, emphasized aligning definitions and removing ambiguities for coherence with existing legal frameworks.

With 566 suggestions, the report pushes for enhancements such as timely taxpayer refunds and clarification for non-profit income terminology. Further amendments propose clear guidelines on tax procedures, intending to streamline the tax system, reduce disputes, and modernize the 1961 Act's framework.

(With inputs from agencies.)